Data released by the Statistical Institute of Jamaica (STATIN) shows inflation dipping to 7.8 per cent in November, down from 8.5 per cent recorded a month earlier.

However, inflation still remained above the four to six per cent target range that the Bank of Jamaica (BOJ) is mandated to maintain. Declines in the prices of agricultural produce were highlighted as being chiefly responsible for the lower inflation.

While there were increases in most divisions, the overall movement in the inflation rate was tempered by a 1.8 per cent decline in the index for the heavily weighted ‘Food and Non-Alcoholic Beverages’ division.

The decrease in the index for the ‘Food and Non-Alcoholic Beverages’ division was mainly attributable to lower prices for some agricultural produce such as yam, tomato and cabbage, due to improvements in local supplies.

This resulted in the index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ decreasing by 10.3 per cent.

Those declines were substantive enough to counter the influence of higher costs for things like electricity, water, and sewage rates and petrol.

With prices still elevated, and the Bank of Jamaica (BOJ) signalling that they will remain higher longer than previously anticipated, the expectation is that the central bank will hike interest rates for the third time in a row.