Inflation in Jamaica is slowing down, going up by a mere 0.1% for March 2023 based on the latest all-Jamaica Consumer Price Index (CPI).

The CPI for last month, which was released yesterday (April 17) by the Statistical Institute of Jamaica (STATIN) shows that the slights upward movement in the basket of goods, which measures inflation, was influenced mainly by a 0.8% increase in the index for the heaviest weighted division ‘Food and Non-Alcoholic Beverages’.

The increase in the index for the ‘Food and Non-Alcoholic Beverages’ division was due to higher prices for agricultural produce such as cabbage, Irish potato and sweet potato, which contributed to the 2.5% increase in the index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’.

This was attributed mainly to lower supplies for some agricultural produce resulting from dry weather conditions. STATIN reports that the rise in the CPI was also influenced by the 1.1% rise in the index for the division ‘Restaurants and Accommodation Services’ resulting from higher prices for meals consumed away from home.

Lower electricity, water and sewage rates

The inflation rate was, however, tempered by a 1.8% fall in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division and a 0.2% decline in that of the ‘Transport’ division. The movement in the former division was due to lower electricity, water and sewage rates, while the latter division was impacted by lower petrol prices.

The point-to-point inflation rate (March 2022 – March 2023) was 6.2%, which is a slight deviation from the upper 4%-6% band projected by the Bank of Jamaica. This was influenced mainly by the point-to-point inflation rate for the divisions: ‘Food and Non-Alcoholic Beverages’ (10.1%) and Restaurants and Accommodations Services’ (16.9%).

These upward movements were, however, tempered by a 1.9% decline in the index for the group ‘Housing, Water, Electricity, Gas and Other Fuels.’