Inflation in Jamaica cooled in July, 0.30 percent, well above the 0.3 negative inflation in June and brings the last twelve months’ inflation rate to 3.3 percent, well below the Bank of Jamaica’s target of four to six percent, the Statistical Institute of Jamaica (STATIN) reported in its latest bulletin on price movements in the country.

According to Statin, the main contributor to the increase was a 0.9 percent rise in the index for the Food and Non-Alcoholic Beverages division, with the Food group rising by 0.9 percent, while the index for the Non-Alcoholic Beverages group increased by 0.4 percent.
“The increase in food was largely due to a 2.9 percent rise in the index for the class Vegetables, tubers, plantains, cooking bananas and pulses. Prices for cabbage, sweet pepper, tomato and yam increased, however, this was partly offset by lower prices for carrot, plantain and sweet potato,” Statin reported. The transport sector also contributed to the increase. The overall increase was moderated by a 0.8 percent decline in the index for the Housing, Water, Electricity, Gas and Other Fuels division.

The moderation and the continued fall in point to point inflation for two consecutive months should encourage the Bank of Jamaica to cut the Overnight interest rate, sooner than later.