Consumer Price Index December 2021

• Consumer Prices rose by 0.8% in December 2021 according to Monday’s release from the Statistical Institute of Jamaica. A 4.7% increase in the index for the Housing, Water, Electricity, Gas and Other Fuels division due to higher rates for electricity was the main driver. In fact, Electricity, Gas and Other Fuels rose by 11.9%. 
• The point-to-point inflation rate for the period December 2020 – December 2021, was 7.3%, down from 7.8% in November. This was mainly influenced by increases in Food and Non-Alcoholic Beverages (4.9%), Housing, Water, Electricity, Gas and Other Fuels (11.7%), and Transport (13.9%). 
• For the fiscal year-to-date, the rate of inflation was 8.6%, while the inflation for the 2021 calendar year was 9.1%, significantly higher than the 5.2% increase in consumer prices in 2020. 
• Given that the inflation outturn continues to exceed the Bank of Jamaica’s 4.00% - 6.00% inflation rate target, we anticipate further rate increases in the coming months as the BOJ attempts to guide the inflation rate back within the target range and to manage inflation expectations.

(Sources: Statin and NCBCM Research)