Inflation in Jamaica for May 2024 was 0.5 percent, down from 0.6 percent in May 2023 according to the Statistical Institute of Jamaica (Statin) computed All Jamaica Consumer Price Index. The five months of deflation for 2024 comes in at negative 1.3 percent.
Statin also stated the upward movement was due mainly by a 1.1 percent rise in the index for the heaviest weighted division of Food and Non-Alcoholic Beverages.
The point to point inflation fell marginally over the past 12 months to 5.2 percent, down from 5.3 percent in April and roughly at the mid-point of the target range of four to 6 percent set by the government of Jamaica for the country’s central bank to attain.
Importantly, Statin said that Food and Non-Alcoholic Beverages (3.9 percent), ‘Transport’ (9.7 percent) and ‘Housing, Water, Electricity, Gas and Other Fuels’ (3.8 percent) were the major contributor to inflation in the past 12 months.
Jamaica’s inflation jumps in May
Jamaica’s Inflation stays low
Inflation in Jamaica for the first five months of 2020 remained extremely low, with the rate for May, coming in at 0.1 percent following April’s increase of just 0.2 percent, leading the year-to-date inflation rate at negative 0.4 percent.
Inflation over the past twelve months came out at 4.2 percent, with the period between July and November rising by exactly 4.2 percent, mostly due to a hike in the exchange rate of the Jamaican dollar versus the US dollar.
The May movement resulted mainly from a 1.1 percent increase in the heavily weighted Food and Non-Alcoholic Beverages division, according to a release from the Statistical Institute of Jamaica due to higher prices for agricultural produce, with a 2.3 percent rise. The division of Housing, Water, Electricity, Gas and Other Fuels increased 1.5 percent due mainly to electricity rates, which resulted in a 5.6 percent upward movement in the index for the group.
The index for the Education division fell 22.1 percent, primarily due to a decrease in tuition fees for the summer term and the Transport division index fell 0.3 percent, with lower prices for petrol contributed to this decline.
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.