Inflation Out-Turn For 2014/2015 at Five Per Cent or Lower

The inflation rate is expected to continue to fall, with an out-turn of five per cent or lower for the financial year 2014/2015.

This is compared with the 8.3 per cent that was recorded in the previous fiscal year.

Minister of Finance and Planning, Dr. the Hon. Peter Phillips, who revealed the inflation figures at the opening of the 2015/16 Budget Debate in the House of Representatives on Thursday (March 12), said the economy is “moving in the right direction.”

“The last fiscal year recording inflation lower than this was 1971/1972, some 43 years ago (of 4.4 per cent),” he said.

The inflation rate has been steadily declining, and stood at 9.5 per cent for the calendar year 2013. This was then significantly reduced to 6.4 per cent, for calendar year 2014.

In the meantime, Dr. Phillips noted that domestic interest rates declined during the year, due to the bolstering of the Bank of Jamaica’s gross reserves by the proceeds of the US$800 million bond and the improved Jamaican dollar liquidity.

“Average yields on the Government of Jamaica 30-day, 90-day and 180-day instruments declined. Similarly, there was a downward trend in the average yields on GOJ global bonds,” he said.

The Finance Minister further noted that inflation, the current account deficit, the debt to Gross Domestic Product (GDP) ratio, unemployment and Net International Reserves “are all moving in the right direction.”

“All indicators point to the growing competitiveness of our exchange rate and even stronger rates of investment activity and job creation,” he said.