The inflation rate, increased by a mere 0.2 percent in April 2015 while the year-to-date inflation rate for April 2015 is minus 0.5 percent, the point-to-point 4.4 percent.
Statin said the lower increase for April is due mainly to upward movements in the index for the divisions of Food and Non-Alcoholic Beverages 0.5 percent, Alcoholic Beverages and Tobacco 1.3 percent and Transport 1.1 percent. The fall in prices the group Electricity, Gas and Other Fuels’ which fell by 4.6 percent. This resulted mainly from lower fuel rates, as well as an appreciation of the Jamaican dollar.
The calendar The other divisions that recorded increases in the All Jamaica ‘All Divisions’ index were: ‘Clothing and Footwear’ 0.4 percent, ‘Furnishings, Household Equipment and Routine Household Maintenance’ 0.4 percent, ‘Health’ 0.2 percent, percent, ‘Recreation and Culture’ 0.3 percent, ‘Restaurants and Accommodation Services’ 0.2 percent, and ‘Miscellaneous Goods and Services’ 0.3 percent.
Jamaica’s 2015 inflation remains tame
Treasury bill rates slide continue
Government of Jamaica Treasury bill rates, declined in the latest auction of the short-term debt instruments, opened today at the Bank of Jamaica offices. The 182 days instrument closed at its lowest level since May 2013 when it then cleared at 6.44 percent.
At today’s auction the average rate came in at 6.787 percent, down from 6.998 percent in March and the 91 days ended at 6.06 percent, a decline that is well down on the previous rate of 6.72765 percent.
The declines come against the background of consistently falling rates since the start of the second quarter last year, negative inflation and a cut this month in Bank of Jamaica’s CD rate, from 5.75 percent to 5.50 percent.
The implications of the fall include potential for lower lending rates down the road, stimulation of interest sensitive investments such as stocks and long term bonds and of course persons looking for income from fixed interest securities will be getting less income going forward than in the recent past.
January remittances climb
Jamaica enjoyed a record haul in remittance inflows for the month of January with US$166 million garnered in January this year, according to data from Bank of Jamaica.
The flows represent an increase of US$8 million or 5.1 percent more than the amounts collected in January 2014. The growth in remittance inflows and a contraction in outflows resulted in net remittance inflows increasing at a faster pace than total inflows, with net remittances of US$147.4 million for January 2015, an increase of US$9.5 million or 6.9 percent over January 2014.
The gain in net inflows would have been occasioned by greater stability and availability of foreign exchange locally.
30 days interest rate rise
Interest rate increased for the latest Government of Jamaica Treasury Bills offering for April over the previous issue, in March this year, but by a relatively small amount of 0.04 percentage points.
The highest and lowest rates in the auction, suggest that investors expected rates to have eased rather than rise, with successful investors obtaining rates ranging from 6.1 percent to 6.74999 percent with an average rate 6.33979 percent, compared to the March auction with a high of 6.8 percent and a low of 6 percent and an average of 6.3 percent. Applications for $690,246,600 chased the $400,000,000 available on Wednesday, April 15 for Treasury Bills with a 30 days maturity of Friday May 15.
Jamaican economy grew 0.4% in 2014
For the year Statin said that there was a 0.6 percent increase in the output of the Services industries while the Goods Producing industries declined by 0.1 percent. Growth last year was the second year of increased output for the economy with very moderate growth for 2013 around 0.2 percent. The figures will undergo at least two sets of revision before they are final as such the figures could be increased or reduced based on new data that may become available.
The Jamaican economy, grew by 1.6 percent in the first quarter of 2014, over the similar period in 2013. In the second quarter, growth accelerated to 1.9 percent, but a combination of drought conditions and negative impact of Chick v illness as well as closure of the oil refinery severely affected growth in the second half of the year, but more so in the third quarter. The economy declined by 1.4 percent in the third quarter of 2014 compared to the similar quarter of 2013 and growth in “the final quarter of the year resulted in 0.4 percent negative growth compared with the same period in 2013,” Statin said.
For the final quarter of 2014 the reduction in output was due mainly to a 3.9 per cent decline in the Goods Producing industries. The Services industries however, recorded an increase of 0.8 per cent, Statin stated.