Jan 2007 Financial News

Inflation down to 9.1%

Jan 29, 2007

INFLATION continues to fall, measuring 9.1 per cent for December on a year on year basis.

This is down from 9.6 per cent in November and a record-breaking 10 per cent in October.

"Food prices, which have been the main driver of headline inflation, increased year on year by 22 per cent, slightly below the increase of 26.5 per cent and 24.3 per cent recorded in October and November respectively," the Central Bank said in a statement yesterday.

The increase in agricultural production and distribution has been credited for the decrease in food prices.

"The slower increase in food prices in the last two months could be related to initial steps to broaden the agricultural distribution network through the setting up of farmers' markets. Growing price consciousness on the part of consumers, prompted by the wider dissemination of information on basic food prices in the media, may already be having some calming effect on price increases," the bank added

"In addition, the customary open market operations and sales of foreign exchange will help to tighten liquidity in the financial system."

The bank said these measures would help contain domestic demand and address core inflation.

Central Bank has also decided to maintain the current Repo rate at eight per cent.


Source:
Driselle Ramjohn
The Trinidad Express
Saturday 27th January, 2007

http://www.trinidadexpress.com/index.pl/article_business?id=161091330