Inflation rose 0.1% for the month of April, according to the Statistical Institute of Jamaica (STATIN). The increase was mainly driven by a 0.5% increase in ‘Food’ and 0.3% in-crease in ‘Non-Alcoholic Beverages’. ‘Transport’ also recorded a 0.4% increase. On the other hand, lower electricity rates influenced a decline of 1.6% in ‘Water Supply and Mis-cellaneous Services Related to Dwelling’ and a decline of 2.4% in ‘Electricity, Gas and Other Fuels’.
Calendar Year to date inflation stood at 0.8% while the point to point (year over year) inflation recorded 3.9% and the fiscal year to date recorded 0.1%. The point to point infla-tion of 3.90% remains below the BOJ inflation target of 4% to 6% on an annual basis. We believe that the recent increase in oil prices and increase in the money supply are fac-tors that could boost inflation and bring it closer to the target rate.