Inflation jump in July

Prices increases of 2.2 percent in the division of ‘Food and Non-Alcoholic Beverages’, Vegetables and Starchy Foods’ which moved up by 9.7 percent, ‘Housing Water, Electricity, Gas and Other Fuels’ an increase of 1 percent offset by declines in other areas, helped push inflation by 0.9 percent in July this year, the Statistical Institute of Jamaica (STATIN) reported.
Higher rates for electricity, water and sewage were items helping in the inflationary push but the division of ‘Transport’, recorded a decrease of 2.7 per cent, which tempered the upward movement of the overall index. This decline was due largely to 16.7 per cent decrease in adult bus fares for passengers in the Greater Kingston Metropolitan Area taking Jamaica Urban Transit Company (JUTC) buses.
Inflation in a calendar year-to-date inflation rate of 1.4 per cent, while the rate since last year July is 3.8 percent. With the price of oil on the world market at US$42 per barrel and the announcement of reduction in electricity cost locally, will have a moderating effect on inflation going forward for a while.