Inflation hits 8.6 per cent in September, highest since December 2022

Jamaica's annual inflation rate climbed to 8.6 per cent in September, the highest since December 2022 and above the Bank of Jamaica's (BOJ) four-to-six per cent target range, according to the Statistical Institute of Jamaica (STATIN).

In its monthly report released on Thursday, STATIN said the All-Jamaica Consumer Price Index rose 1.5 per cent in September alone, driven mainly by a 2.9 per cent increase in the Food and Non-Alcoholic Beverages division. Within that, prices for vegetables, tubers, plantains, cooking bananas and pulses jumped 10.5 per cent, on higher prices for tomato, carrot, lettuce, pumpkin, Irish potato and sweet potato.

Damien King, executive director of the Caribbean Policy Research Institute (CAPRI), said the higher inflation is being driven by food prices, which he linked to agricultural shortfalls following Hurricane Melissa, which hit Jamaica nearly a year ago.

"This will create some hardships but doesn't reflect an underlying slippage of our low inflation stance," King said.

The outturn places inflation above the Bank of Jamaica's target range of four to six per cent, after inflation had remained largely within or near that band in recent years.

King added that relief could be coming. "This is now a full year after Melissa so crop yields should be returning to normal”, which could result in lower prices, King said.

The Housing, Water, Electricity, Gas and Other Fuels division rose 0.7 per cent, mainly on higher electricity and rental rates. Education rose 4.0 per cent, reflecting higher tuition fees at private primary schools for the new school term.

On an annual basis, Transport was the fastest-rising division at 14.6 per cent, with fuel and lubricants for personal transport up 24.8 per cent and passenger transport services up 15.4 per cent on higher route taxi and hackney carriage fares.

Food and Non-Alcoholic Beverages rose 12.4 per cent; and Housing, Water, Electricity, Gas and Other Fuels rose 4.5 per cent over the same period.

Prices rose 1.1 per cent in the Greater Kingston Metropolitan Area in September; 1.6 per cent in Other Urban Centres; and 1.7 per cent in rural areas. Annual inflation was highest in Other Urban Centres, at 9.2 per cent.

- Carolyn Guniss

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