Inflation picks up

Price increases in Jamaica for the year to August rose to 1.6 percent with August adding 0.9 percent increase to consumer prices, slightly less than the 1 percent increase in July while price increases for the past twelve months was 3.9 percent.
The fiscal year-to-date is running at 1.9 percent and seems to be running below the 4-6 percent range the central bank targeted but may fall just below the Bank’s latest revised forecast 0f 3.5-6.5 percent, with the months ahead, usually recording lower inflation than the summer months.
According to the Statistical Institute of Jamaica (STATIN), “The upward movement in August 2018 CPI was influenced by a 1.6 percent increase, in the index for the Food and Non-Alcoholic Beverages division, primarily due to higher prices for agricultural produce resulting in an increase of 0.6 percent in the class Vegetables and Starchy Foods.” “Another influence on the upward movement was the Furnishing, Household Equipment and Routine Household maintenance division as a result of the increase in the Minimum Wage of approximately 13 percent,” Statin stated. A fall of 0.1 percent in the index for the division Housing, Water, Electricity, Gas and Other Fuels, due to a lower electricity rates helped to ease the pressure of big increases.

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