Mar 2013 Financial News

CSO: Inflation rises to 7.3%

Mar 01, 2013

The rate of inflation in Trinidad and Tobago has climbed slightly.

Data from the Central Statistical Office (CSO) shows headline inflation stood at 7.3 per cent in January, slightly up from 7.2 per cent in December 2012, the Central Bank said in its repo rate statement yesterday.

On a monthly basis, headline inflation rose by 2.6 per cent in January following a decline of 0.8 per cent last December.

Food inflation accelerated to 13.8 per cent (year on year) in January compared to 12.7 per cent in the previous month.

This was primarily due to faster price increases for vegetables, meat, oils and fats, milk, cheese and eggs, among other products, the bank said.

Core inflation, which excludes food prices, slowed to 2.2 per cent in January.

There were slower price increases in alcoholic beverages, clothing and footwear, tobacco, utilities, recreation and culture.

After exhibiting a slow but steady rise, there was an unexpected slowdown in private sector credit toward the end of 2012, the bank stated.

High net domestic fiscal injections contributed to a sharp build-up in financial system liquidity this month.

Commercial banks' holdings of excess reserves at the Central Bank climbed to a daily average of $5.132 billion in February.

With inflationary pressures still well contained and continued expectation for a turnaround in economic activity in 2013, the bank said it decided to maintain its repo (overnight lending rate) at 2.75 per cent.


Source:
Trinidad Express
Friday March 1, 2013

http://www.trinidadexpress.com/business/CSO__Inflation_rises_to_7_3_-194093411.html