Inflation rose to 3.9% for Year-to-April
- According to STATIN, the All Jamaica Consumer Price Index (CPI) rose 0.1% for the month of April.
- The movement in the CPI in April was mainly attributable to a 0.5% increase in the Food and Non-Alcoholic Beverages division, with the primary contributors being Vegetables and Starchy Foods (+1.1%) and Non-Alcoholic beverages (+0.3%). Additionally, higher global oil prices contributed to an (0.4%) increase in the ‘Transport’ division.
- The calendar year-to-April 2019 movement was 0.8% (-0.7%; April 2018) while point-to-point inflation to 3.9% (3.2%; April 2018). Despite the 12 months to April 2019 inflation rate coming in above the 3.4% recorded for the year-to-March 2019, inflation continues to be below BOJ’s target range of 4%-6%.
- This outturn likely precipitated the BOJ’s decision to reduce the cash reserve requirement as it seeks to stimulate consumer prices through increased demand for goods and services, and, by extension, growth in economic activity.