INFLATION in Jamaica eased in May for a fourth-straight month, a hopeful sign that an acceleration of prices that occurred late last year may have passed. The trend, if it holds, could move the Bank of Jamaica closer to cutting its benchmark interest rate from its 13-year peak.

Measured from a year earlier, consumer prices climbed 5.2 per cent, below last month’s 5.3 per cent rise and the mildest such increase since a blip in October last year.

From month to month the out-turn in inflation for May was 0.5 per cent, marking the first time this year that consumer prices have recorded an average increase. In May the prices for things like agricultural produce and electricity prices rose but were tempered by the impact of lower petrol prices.

Bank of Jamaica officials, who will have their policy meeting next Wednesday and Thursday, are scrutinising each month’s inflation data to assess their progress in the fight against rising prices — before making an announcement on their decision on Friday June 28.

Central bank Governor Richard Byles has already indicated that rate cuts could start in the second half of this year, but will be informed by the data. The key policy rate has been at seven per cent since November 2021.