Jamaica’s inflation cools


Jamaica experienced a dramatic inflation spike in late 2025, driven primarily by the effects of Hurricane Melissa on reducing agricultural production and increasing prices. The Consumer Price Index rose by 2.4 percent, in November, with the pace slowing to 1.3 percent in December, as agricultural supplies slowly returned to more normal levels.

November’s 2.4 percent monthly rise was the highest since September 2013, with 2.8 percent and matched the August 2024 increase following Hurricane Beryl. Hurricane Melissa, which struck on October 28, severely disrupted agricultural production and infrastructure. Food prices surged 6.0 percent in November, with vegetables, tubers, and plantains jumping 19.1 percent, while fruits and nuts increased 8.8 percent. Inflation in this category, in December climbed at a much slower pace of 2.1 percent, with vegetables, tubers, and plantains jumping 4.5 percent, while fruits and nuts increased 5.6 percent.

By year-end, point-to-point inflation reached 4.5 percent, with food inflation accelerating to 7.1 percent year-over-year. Housing and utility costs also contributed, rising 3.5 percent annually. Despite these pressures, inflation climbed from 2.9 percent in October to 4.3 percent in November and 4.5 percent in December, remaining well within the central bank’s target range of 4-6 percent.

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