Inflation levels declined sharply from what was reported in May due mainly to a decline of 2.5 per cent in the index for the division ‘Housing, Water, ‘Electricity, Gas and Other fuels’. This was mostly due to a reduction in prices for ‘Electricity, Gas and Other Fuels’ and for ‘Water Supply and Miscellaneous Services related to Dwelling’.

Statin, the government’s body for collection and collating the data, reported that the All Jamaica ‘All Divisions’ Consumer Price Index for June 2013 recorded a mere 0.2 per cent rate of inflation,  0.3 percentage points below the 0.5 per cent rate recorded for May 2013.  ‘Food and Non-Alcoholic Beverages’, the heaviest weighted division in the computation of the Index, recorded a 0.7 per cent rate of increase, resulting mainly from increased prices for ‘Fruits’ which was moderated by the declines mentioned above.

The other divisions that recorded increases were ‘Alcoholic Beverages and Tobacco’ 0.7 per cent, ‘Clothing and Footwear’ 0.4 per cent, ‘Furnishings Household Equipment and Routine Household Maintenance’ 0.5 per cent, ‘Health’ 2.0 per cent,  ‘Transport’ 0.2 per cent ‘Recreation and Culture’ 0.4 per cent, ‘Restaurants and Accommodation Services’ 0.3 per cent, and ‘Miscellaneous Goods and Services’ 0.7 per cent. There was no movement recorded for ‘Education and ‘Communication’.

The mean All Jamaica CPI for the second quarter in 2013 moved upward by 2.0 per cent in comparison to the 2.5 per cent for the first quarter. The calendar year–to-date inflation rate was 3.9 percent.

The Greater Kingston Metropolitan Area (GKMA) and Rural areas recorded increases of 0.3 per cent and 0.1 per cent respectively, while the inflation rate for Other Urban Centres (OUC) was relatively unchanged.

Data from the Statistical Institute of Jamaica (Statin) is confirming what Jamaicans already know — the economy suffered a decline in the first quarter of 2013. According to the government body charged with the collection and compilation of data, the economy declined by 1.3 percent in the first quarter of 2013 compared to the similar quarter of 2012. The sectors that made a big dent to the economic performance were Agriculture, Forestry & Fishing industry which declined by 11.4 per cent, Mining & Quarrying industry which fell by 9.1 per cent. These of course were not the only sectors to suffer reduced output.

The report indicated decreased output in both the Goods Producing and Services industries which fell by 4.5 per cent and 0.1 per cent respectively. Continued macroeconomic challenges in the economic environment as well as the lingering effects of Hurricane Sandy, which affected the island in October 2012, were the factors posted by Statin for the poor performance of the sectors and the negative economic performance in the first quarter.

The Manufacturing sector declined by 1.6 per cent but there was improved performance in the Construction industry which grew by 0.7 per cent. There was mixed performance within the Services industries. Increased output was recorded by Transport, Storage and Communication (0.6 per cent), Finance and Insurance Services (0.2 per cent), Real Estate, Renting & Business Activities (0.4 per cent) and Other Services (0.1 per cent). Industries that experienced lower levels of output were Electricity & Water Supply (-3.0 per cent), Hotels and Restaurants (-2.3 per cent) and Producers of Government Services (-0.1 per cent). The Wholesale & Retail Trade, Repairs, Installation of Machinery & Equipment remained unchanged.

When compared with the fourth quarter of 2012, the real value added declined 0.5 per cent. Both the Goods Producing and Services industries recorded lower levels of output. The Goods Producing industries declined by 1.4 per cent while the Services industries declined by 0.2 per cent.

Exports of non-traditional commodities jumped 18 percent over the 2012 with a value of US$222 million during January to March 2013 period helping to propel it moved past traditional exports. The change accounted for a larger share of domestic exports, moving it from 44.4 per cent in the 2012 review period to 51 per cent in the current 2013 review period as traditional exports declined during the quarter.

Total traditional exports amounted to US$213 million in the 2013 review period, down from US$235 million in the previous 2012 period for a decrease of US$22 million or 9.3 per cent. The improvement in exports was insufficient to cover the increase in imports, leaving a bigger trade gap than in the similar quarter in 2012.  Total exports for the period amounted to US$451 million up from US$435 million in the 2012 period, an increase of US$16 million or 3.7 per cent.

Imports were valued at US$1.715 billion during the quarter, compared to the US$1.629 billion during January to March period last year, an increase of US$86 million or 5.3 percent. At the end of the quarter, the total merchandise trade deficit widened to US$1,264 million compared to US$1,195 million in the previous year.

Import categories | During the January to March 2013 period, there was a general upward trend in the value of imports for all but three commodity groups, “Mineral Fuels, etcetera”, “Manufactured Goods” and “Machinery and Transport Equipment”. The commodity group “Mineral Fuels, etcetera” had a value of US$566 million, a US$141 million or 19.9 per cent drop from US$706 million in the similar period in 2012.

Higher imports of ’organic chemicals’ mainly ethanol, ‘medicinal and pharmaceutical products’ resulted in the value of imports rising by US$188 million over the January to March 2012 period.

Imports of “Food” was valued at US$279 million, up from the US$239 million reported for the similar 2012 period due to increases in ‘cereals and cereal preparations’, ‘feeding stuff for animals’, ‘miscellaneous edible products and preparations’ and ‘vegetables and fruits’.

Total Exports | Earnings from total exports during the January to March 2013 period amounted to US$451.0 million, of which domestic exports was valued at US$434.6 million and re-exports US$16.4 million.

Traditional Domestic Exports | During the March quarter of 2013, the contribution of major traditional domestic exports to the value of domestic exports decreased from 55.6 per cent in the first quarter of 2012 to 49.0 per cent.

During the month of March 2013 the United States of America (USA) remained Jamaica’s main trading partner with US$226 million or 37 per cent of imports originating from that country. This brought the year-to-date imports from the USA to US$639 million. Approximately US$66.3 million or 50.9 per cent of total exports was sent to the USA in March 2013 bringing the year-to-date exports to US$248 million. At the end of the first quarter of 2013, Jamaica incurred a trade balance with the USA of S$391 million down from US$403 million in the first quarter of 2012.