Fuel prices at the pumps in May 2015.

Inflation in Jamaica for 2016, fell to the lowest level in decades, with the Consumer Price Index showing inflation rate at just 1.72 percent for the year. The findings were released by Statistical Institute of Jamaica.
The inflation rate for 2017 could be even lower than that of 2016, if the historical patterns repeat. The 2016 out turn compares with 3.7 percent recorded for 2015. The rate for December 2016 was 0.3 percent and is just below the average of fiscal year-to-date movement of 3.1 percent to December 2016.
The rate for 2016 would have been even less, had it not been for increased taxes imposed by the government on a series of items in the first half of the year. The added increase from taxes should not recur in 2017 as revenues are running well ahead of target for the 2017 fiscal year and a pickup in growth should see a healthy increase in revenues for the new fiscal year.
In 2016, inflation in Jamaica, benefited from a continuation in tight fiscal policies, pursued by the government, but it would have been negatively affected by slippage in the exchange rate of the Jamaican dollar versus the US dollar. Moderation in energy prices helped as well.
Going forward, the country should continue to benefit from relatively low energy prices a more stable exchange rate of the Jamaican dollar as foreign exchange inflows remain strong.
Data going back to 2002 suggests that the first two months of the year tend to have flat to negative inflation. In 2015 inflation remained below the December 2014 level until April and just inching ahead in May. In 2016 it remained below the December 2015 level until July.