Jan 2017 Financial News

Inflation at 45-year low (Jamaica)

Jan 18, 2017

THE Statistical Institute of Jamaica (STATIN) has reported that Jamaica’s inflation rate remains at a record low level, and was 1.7 per cent at the end of December.

It’s the lowest inflation rate the country has seen in more than 45 years. According to the website Trading Economics, which analyses economic data from more than 196 countries, the inflation rate in Jamaica has averaged 9.79 per cent from 2002 until 2016, reaching an all-time high of 26.49 per cent in August 2008 and a record low of 1.60 per cent in November 2016.

STATIN, in a release yesterday, said the downward trend in inflation was led by a 0.3 per cent increase in the All Jamaica All Divisions Consumer Price Index (CPI) for December 2016.

The most important category in the CPI is food and non-alcoholic beverages, which accounted for 37.4 per cent of total weight. For the month of December, food and non-alcoholic beverages moved up by 0.4 per cent, mainly due to the class of vegetables and starchy foods which increased 0.8 per cent.

However, the main contributor to the increase in CPI for the month under review was housing, water, electricity, gas and other fuels which increased by 0.8 per cent, primarily due to increased electricity, water and sewage rates, according to STATIN.

The division recording the lowest movement was transport, which was the only division to register a decline, moving down by 0.5 per cent as a result of lower fuel prices on the local market.

The fiscal year-to-date movement was 3.1 per cent as at December 2016.

The other divisions that recorded increases in the All Jamaica All Divisions index were alcoholic beverages and tobacco, 0.1 per cent; clothing and footwear, 0.1 per cent; furnishings, household equipment and routine maintenance, 0.1 per cent; health, 0.4 per cent; restaurants and accommodation services, 0.1 per cent; and miscellaneous goods and services, 0.4 per cent.

The divisions recreation and culture, education and communication each recorded negligible movement in their index.

The regional index showed upward movements for all three regions — Greater Kingston Metropolitan Area, up by 0.4 per cent; other urban areas up by 0.3 per cent; and rural areas up by 0.2 per cent, according to STATIN.

Source:
Jamaica Observer
Wednesday January 18, 2017

http://www.jamaicaobserver.com/business/Inflation-at-45-year-low_86779