The Statistical Institute of Jamaica (STATIN) in its latest report on the consumer price index (CPI) has said that the inflation rate recorded a movement of -0.3 per cent for the month of March. The rate in the previous month was 0.7 per cent.

“The main contributor to this movement in March was the 1.8 per cent reduction in the index for the ‘housing, water, and electricity, gas and other fuels’ division. This movement was due to lower rates for electricity, which resulted in a 3.7 per cent fall in the group ‘electricity, gas and other fuels’,” a release from the entity informed.

Speaking at a live stream quarterly briefing last Thursday, Carol Coy, director general of STATIN, said that the heaviest weighted division of ‘food and non-alcoholic beverages’ also recorded a decline in its index, falling by 0.2 per cent.

“This was due to a fall in prices for some agricultural produce such as carrot, lettuce and tomato. This resulted in a 1.3 per cent decrease in the overall index for the class ‘vegetables and starchy foods’,” she said.

Coy indicated, however, that increases were recorded for the following divisions: ‘alcoholic beverages’ (0.3 per cent) as a result of higher prices for ‘spirits’ and ‘tobacco’; ‘clothing and footwear’ by 0.2 per cent, ‘furnishings, household equipment & routine household maintenance’ by 0.1 per cent, and the ‘health’, ‘restaurants and accommodation services’ and ‘miscellaneous goods and services’ divisions each recorded 0.1 per cent.

“However, the overall inflation rate was moderated by a 0.5 per cent increase in the index for the ‘transport’ division due mostly to lower petrol prices,” Coy further noted.

For the review period, the point-to-point inflation was 4.8 per cent which was lower than the 6.0 per cent in February, the fiscal year-to-date was 4.8 per cent and the calendar year-to-date inflation rate was -0.7 per cent. Given the continued impacts of the COVID-19 pandemic which threatens to bring about economic slowdowns, if this continues it point-to-point inflation may continue to fall in the near term towards the lower end of the 4.0-6.0 ranged prescribed by the central bank.

— Kellaray Miles