Local Point to Point Inflation Falls to 6.2% in March

• For March 2023, the All-Jamaica Consumer Price Index (CPI) increased by 0.1 per cent. The point-to-point inflation rate (March 2022-March 2023) has, however, fallen further to 6.2 per cent. Notably, the figure represents the lowest point-to-point inflation figure since August 2021 (6.1%). This current inflation figure is just outside the Bank of Jamaica’s (BOJ) target range of 4.0 to 6.0 per cent.
• The 0.1 per cent increase in the monthly inflation was largely influenced by the 0.8 per cent increase in the index for the ‘Food and Non-Alcoholic Beverages’ division as prices continued to increase within the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’. This was attributed mainly to lower supplies of some agricultural produce resulting from dry weather conditions.
• The rise in the CPI was also influenced by the 1.1 per cent increase in the index for the division ‘Restaurants and Accommodation Services’ resulting from higher prices for meals consumed away from home.
• The inflation rate was, however, tempered by a 1.8 per cent fall in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division and a 0.2 per cent decline in that of the ‘Transport’ division.
• On May 19, 2023, the BOJ will host its monetary policy meeting and we anticipate that the bank will continue holding the policy interest rateat 7% as it continues to watch the pass-through effects of previous rate hikes.

(Source: STATIN)