Market Talk Update – February 23, 2018

** Previous BOJ Overnight Interest Rate (policy rate) as at January18, 2018  

Jamaica’s inflation rate during the month of January 2018 recorded negligible or insignificant movements of 0.0% relative to 0.6% increase in the prior month. This was attributable to fluctuations recorded in the index for the heaviest weighted divisions ‘Food and Non- Acholic Beverage’, Transport’ and Housing, Water, Electricity, Gas and Other Fuels’. The Food and Non-Acholic Beverage division fell by 0.2% due to lower prices for starchy foods and vegetables locally. The Transport division also recorded a negative movement, on account of lower cost for air travel. However, this negative movement was moderated by increases in primarily ‘Water Supply and Miscellaneous Services Related to the Dwelling’, ‘Housing, Water, Electricity, Gas and Other Fuels’ and ‘Education’. As at January 2018, point-to-point inflation was 4.8% whilst fiscal year-to-date inflation it was 4.2%, which falls within the Bank of Jamaica’s projected range of 4.0% to 6.0% for the 2017/18 fiscal year.