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Financial News

Jan 2011 Financial News

Inflation rate continued to rise in December

Jan 19, 2011

Inflation in December, at 1.4 per cent, finished the year higher than the previous nine months and the rate at which the Consumer Price Index (CPI) moved higher than the prior month increased for the fourth consecutive month.

Inflation for 2010 was measured at 11.7 per cent by the Statistical Institute of Jamaica (Statin), which was 1.5 percentage points hihger than the comparative period in 2009.

On the other hand, inflation for the first nine month of the current fiscal year was 7.3 per cent compared to 8.8 per cent for the period March 2009 to Dcember 2009.

The increase in prices reflected a 2.2 per cent increase in the index for the division 'Housing, Water, Electricity, Gas and Other Fuels', followed by the 2.1 per

cent increase for items in the division 'Food and Non-Alcoholic Beverages'.

Food prices "continued to be affected by short supplies of agricultural produce", according to Statin, but no account was given for the movement in the price of alcohol, which should see a significant increase due to new taxes imposed in December.

Further expected increases in food prices should also feed into higher overall inflation for the remainder of the current fiscal year, for which all indicators suggest inflation outturn will surpass the high end of the target range, or 9.5 per cent.

Jamaica Observer
Wednesday January 19, 2011