Inflation Down in August

The Statistical Institute of Jamaica (STATIN) is reporting that the inflation rate for August was 1.1 per cent, 0.3 per cent less than the 1.4 per cent recorded in July. STATIN says the rate for August was caused by a 2.7 per cent increase in prices for food and non-alcoholic beverages.

In its monthly Consumer Price Index released on Monday, September 15, STATIN noted that “food increased by 2.8 per cent as production levels of some agricultural crops declined, due to the continued drought conditions across the island.”

However, the entity says the impact of the increases in food and beverages was moderated by a 1.3 per cent decline in the index for the division, ‘Housing, Water, Electricity, Gas and other Fuels.’

This decline was as a result of a fall in the cost of electricity and a 0.2 per cent fall in the cost of transportation, due to lower fuel prices.

As at August 2014, the inflation rate for the calendar year-to-date was 5.0 per cent, the fiscal year-to-date 3.3 per cent and the point-to-point 9.8 per cent.

At a press briefing on September 8, Co-Chair of the Economic Programme Oversight Committee (EPOC), Richard Byles, said meaningful changes in the inflation rate will come with a decrease in food prices.

“What we have to bank on is that the drought eases and the food prices come down,” Mr. Byles said.