The All Jamaica Consumer Price Index to July this year came out at 5.1 percent for the point-to-point inflation rate for the last twelve months to July 2024 this year is down from 5.4 percent in June and the fifth month that it has remained in the low 5 percent level, with January come out at 7.4 percent an February at 6.2 percent.
Importantly, inflation for the seven months to July 2024 was 0.5 percent.
The inflation rate for July 2024 was 0.8 percent compared to June. According to the Statistical Institute of Jamaica, who compiles the data, “this upward movement was influenced mainly by a 1.9 percent increase in the index for the division ‘Food and Non-Alcoholic Beverages’. They went on to state that, “the inflation rate for July was also impacted by a 0.4 per cent rise in the index for the ‘Transport’ division due mainly to higher petrol prices and increased toll rates for the East-West leg of Highway 2000.”
This sustained low level of point to point inflation and the reduction in BOJ CDs rates to below 9 percent points clearly to a reduction in the overnight rate sooner than later.
