Nov 2014 Financial News

Inflation climbs to two-year high

Nov 28, 2014

T&T’s inflation rose to 9 per cent in October, the highest since October 2012 when it was 9.4 per cent, according to Central Bank data released this week. October last year had 2.7 per cent inflation. 

For the first half of 2014, inflation remained stable below 5 per cent, but then began to climb steadily every month, from 5.9 per cent in July to 7.4 per cent in August to 7.8 per cent in September. The Central Bank’s communications department on Wednesday said Governor Jwala Rambarran would address the issue at the Monetary Policy Forum on Monday in Chaguanas.

The bank’s Monetary Policy Committee, in its September 2014 meeting, resolved to increase the repo rate by 25 basis points to 3.00 per cent with immediate effect at the time. 

In its September 26 monetary policy announcement, the Central Bank had said: “The increase is now necessary to pre-empt a potential rise in inflationary pressures and to mitigate higher portfolio outflows. The change in the policy rate comes after the Central Bank adopted an accommodative monetary stance for the past four years. 

“This accommodative monetary stance helped stimulate economic growth and encouraged business and consumer lending. “It included holding the repo rate at a low of 2.75 per cent since September 2012.”

Source:
Aleem Khan
Trinidad Guardian
Friday November 28, 2014

http://www.guardian.co.tt/business/2014-11-28/inflation-climbs-two-year-high