More fall in Treasury bill rates

Government of Jamaica Treasury bill sample

Treasury bill rates declined again at the latest auction for $1.4 billion offered by Government of Jamaica on Wednesday.
At the latest Treasury bill auction, the average rate on the 91 days bill declined to 2.544 percent from 2.71 percent at the May auction, while the 182 days instrument average rate dipped to an average of 2.656 percent from 2.83 percent for May. The two offerings of $700 million each, attracted a total of just over $5.3 billion, an indication of continued high liquidity in the market.
The continued fall in rates comes against the back ground of negative inflation of 0.6 percent up to April, including deflation of 0.40 percent in April.

Jamaica’s inflation drops 0.4% in April

Data from the Statistical Institute of Jamaica reveals another month of falling prices for Jamaica with a decline of 0.4 percent in April.
April fall, follows negative 0.1 percent in February and March and no change in January. inflation for 2018 is now negative 0.6 percent and would reduce inflation over the past twelve months to 3.5 percent.
In April Statin stated that the main contributor to the deflation in March was a 1 percent fall in Food and Non-Alcoholic Beverages category, due to lower prices for agricultural produce resulting in a 4.3 percent reduction in index for the class Vegetables and Starchy Foods and Transportation also recorded a decline.

Deflation for Jamaica’s Q1

Prices declined for another month in Jamaica, according to data just released by the Statistical Institute of Jamaica (STATIN) but prices are still high than a year ago.
Statin stated that the All Jamaica Consumer Price Index declined for the second consecutive month as a negative 0.1 percent inflation rate was recorded for March 2018. The main contributor to this movement was the 1.0 percent fall in Food and Non-Alcoholic Beverages category, due to lower prices for agricultural produce resulting in a 4.3 percent reduction in index for the class Vegetables and Starchy Foods. Transportation recorded a decline of 0.4 percent for the period, resulting from lower fuel prices. Upward movement of a 3.2 percent in Housing, Water, Electricity, Gas and Other Fuels, primarily resulting from higher electricity, water and sewage rates help to negate the above mention declines. As at March 2018, the calendar year-to-date inflation was negative 0.2 percent and the movement in the index for the last twelve months is 3.9 percent.

Zero inflation in Jamaica – January

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On average, prices in Jamaica hardly moved in the first month of 2018, according to data released by Statistical Institute of Jamaica (STATIN) as a result the inflation for the past 12 months ended at 4.8 percent.
“The inflation rate recorded a negligible movement according to the January 2018 Consumer Price Index,” Statin stated in their released today. “This was as a result of fluctuations recorded in the index for the heaviest weighted divisions: Food and Non-Alcoholic Beverages, Transport and Housing, Water, Electricity, Gas and Other Fuels. The highest weighted division, Food and Non-Alcoholic Beverages registered a fall of 0.2 percent, due mainly to the class Vegetables and Starchy Foods recording a decline in its index of 1.4 percent because of lower prices for starchy foods and vegetables.”
Housing, Water, Electricity, Gas and Other Fuels increased by 0.3 percent, primarily resulting from higher electricity and water rates. The index for Education rose by 0.5 percent.
Revaluation of the Jamaican dollar against the US dollar during the last two months of 2017 and improvement in weather conditions that resulted in more supply of local foods would have been major contributors to the moderation in inflation.

Jamaica’s inflation tops 5%

Inflation in December 2017, increased by 0.6 percent, bringing inflation for the year to 5.2 percent, according the inflation report put out by the Statistical Institute of Jamaica (STATIN).
According to Statin, “the movement was attributed largely to the upward movement recorded in the index for the divisions Food and Non-Alcoholic Beverages, 0.8 per cent and Housing Water, Electricity, Gas and Other Fuels, 1.2 per cent. The upward movement for the heaviest weighted division Food and Non-Alcoholic Beverages was primarily influenced by the class Vegetables and Starchy Foods which went up by 2.2 per cent. Higher prices for vegetables and starchy foods were the main contributors. Meanwhile, the increase for the division Housing Water, Electricity, Gas and Other Fuels was due mainly to a rise in the cost of electricity.”
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, while 2015 ended with 3.7 percent increase.

Jamaica’s inflation moderates but elevated

Inflation in Jamaica remains at an elevated level with the Consumer Price Index for October 2017 registering an increase rate of 0.4 percent, down from 0.7 percent in September.
The rate of inflation for the calendar year-to-date is 4 percent and for the past twelve months is running at 4.7 percent. The fiscal year-to-date inflation is 3 percent.
According to data released by Statin, the division of Housing, Water, Electricity, Gas and Other Fuels mainly impacted the movement as it increased by 1.7 percent. This was due chiefly to a 2.2 percent increase in the group, Electricity, Gas and Other Fuels. Additionally, there was a 2.7 percent increase for the group Water,

Increased fuel prices added to inflation.

Supply and Miscellaneous Services Related to the Dwelling, due to higher water and sewage rates. Food and Non-Alcoholic Beverages advanced by 0.3 percent influenced mainly by increased prices for items in the class ‘Vegetables and Starchy Foods. Alcoholic Beverages and Tobacco division recorded the second highest movement, 0.7 percent for the month.
The other divisions that recorded increases in the All Jamaica Clothing and Footwear’ 0.1 percent, ‘Furnishings, Household Equipment and Routine Household Maintenance’ 0.2 percent, ‘Health’ 0.2 percent, ‘Recreation and Culture’ 0.2 percent, Restaurants and Accommodation Services’ 0.1 percent and ‘Miscellaneous Goods and Services’ 0.1 percent. There were no movement for each of the divisions ‘Communication’ and ‘Education’.

Inflation eases again in August

The rate that consumer prices rose by, moderated further in “August with an increase in the inflation rate of 0.3 percent,” according to the Statistical Institute of Jamaica (STATIN), coming down from 0.6 percent in July and 0.7 percent in June.
“The rate of inflation for the calendar year-to-date was 3 percent,” Statin stated. Inflation rate over the last twelve months is up 4.4 percent and the fiscal year-to-date 2 percent.
Prices for Recreation and Culture rose 1.3 percent in August” and was “due to mainly to increased prices for books and other school equipment,” Statin said. Higher prices for produce such as cabbage, potato and yam, pushed the index for Food and Non-Alcoholic Beverages by 0.6 percent, the report stated.

Prices of food increased in August.

Other divisions that recorded increases in prices are: Alcoholic Beverages and Tobacco at 0.4 percent, Clothing and Footwear at 0.2 percent, Furnishings, Household Equipment and Routine Household Maintenance at 0.1 per cent, Health at 0.2 per cent, Restaurants and Accommodation Services at 0.1 percent, Miscellaneous Goods and Services at 0.1 percent. There were no movement for the divisions Communication, Education and Transport.

Inflation eases in July

Inflation in Jamaica eased a bit in July to 0.6 percent compared to June 0.07 percent, according to data released by the Statistical Institute of Jamaica (Statin).
“For the second consecutive month the division Food and Non-Alcoholic Beverages recorded the highest movement of 1.2 per cent. This was primarily due to an upward movement in the class ‘Vegetable and Starchy Foods up by 3.8 per cent,” Statin stated and the Transport division rose 0.3 percent. Housing, Water, Electricity, Gas and Other Fuels decreased by 0.3 percent a result of lower electricity rates.
Inflation for the calendar July come out at 2.7 percent, while the movement over the last twelve months runs at 4.5 percent, slightly more than the 4.4 percent at June.

Jamaica’s Inflation spikes in June

‘Vegetables and Starchy Foods’ had a strong impact on price movement in June.

The Consumer Price Index for June 2017 increased by 0.7 percent, represented the highest monthly movement for the 2017 to date, a release from the Statistical Institute of Jamaica (Statin) stated.
The rate of inflation for the calendar year-to-date is 2.1 percent, 4.4 percent over June last year, while the fiscal year-to-date rate is 1.1 percent.
According to Statin, the sharp increase in June was due mainly to increases in the index for the three heaviest weighted divisions: Food and Non-Alcoholic Beverages up by 1.1 per cent, Transport 0.4 percent and Housing, Water, Electricity, Gas and Other Fuels up by 0.4 percent. The Food and Non-Alcoholic Beverages division was impacted by the flood rains in mid-May, which disrupted the supplies of agricultural products and resulted in a 3. 7 percent rise in Vegetables and Starchy Foods. The increase in the Transport division was influenced by higher prices for petrol. Increased electricity rates was chiefly responsible for the upward movement in the division Housing, Water, Electricity Gas and Other Fuels, as the class Electricity, Gas and Other Fuels rose by 1.1 per cent. However, the overall movement of the division was tempered by the 1.3 percent decline in the class Water Supply and Miscellaneous Services Related to the Dwelling. Other notable increases were recorded for Restaurants and Accommodation Services, 0.6 percent and Recreation and Culture, 0.4 percent.

Inflation rate drops in May

Inflation in Jamaica after rising 0.4 percent in January and March and 0.3 percent in April has now fallen to just 0.1 percent for May this year, half of the 0.2 percent rise in February.
The increase for May brings the year to date 1.4 percent and the fiscal year-to-date to 0.4 percent. The inflation rate over the last twelve months rose to 4.6 percent. With the price of oil on the world market slipping recently, a low level of inflation can be expected for some time to come and could result in the year over year rate declining form the above level.
According to Statistical Institute of Jamaica the inflation for May is due to an increase of 0.1 percent in the index for the heaviest weighted division, Food, Non-Alcoholic Beverages and Tobacco. Within this division the group Food rose by 0.1 percent while other notable increases were recorded in the following divisions: Transport 0.2 percent, Alcoholic Beverages and Tobacco 1.6 percent and Restaurants and Accommodation Services 0.3 percent. The upward movement in the index was tempered by a 0.2 percent fall in the division Housing, Water, Electricity, Gas and Other Fuels due to lower rates for electricity, water and sewage.