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Inflation picks up in December — Statin
CPI Infographic for December 2025
Business, Latest News
BY KARENA BENNETT Senior business reporter bennettk@jamaicaobserver.com  
January 15, 2026

Inflation picks up in December — Statin

KINGSTON, Jamaica— After months of relative easing, inflation gathered fresh momentum at the end of 2025, with higher food prices and rising electricity costs pushing consumer prices sharply upward in December, reflecting the lingering effects of Hurricane Melissa.

During a press briefing held by the Statistical Institute of Jamaica (Statin) on Thursday, director general Leesha Delatie-Budair told reporters that the All-Jamaica Consumer Price Index (CPI) rose by 1.3 per cent in December, following a 2.4 per cent increase in November, marking one of the stronger back-to-back monthly movements for the year.

The December increase was driven primarily by food inflation, which climbed 2.0 per cent for the month, as prices for key agricultural items continued to rise in the aftermath of the storm. The sharpest increases were recorded in vegetables, tubers, plantains and pulses, which rose 4.5 per cent, alongside a 5.6 per cent increase in fruits and nuts.

“These increases were attributable to the continued increase in the prices of some agricultural produce that were impacted by Hurricane Melissa,” Delatie-Budair said, noting the delayed transmission of weather shocks to household food costs.

Electricity and housing-related expenses added further pressure. The index for housing, water, electricity, gas and other fuels rose 2.6 per cent during the month, reflecting a 5.4 per cent increase in electricity costs and higher rental charges. Together, food and housing-related expenses accounted for the bulk of the December inflation outturn, reinforcing concerns about cost-of-living pressures at the household level.

By year-end, inflation on a point-to-point basis — measuring price changes between December 2024 and December 2025 — had firmed to 4.5 per cent, up from earlier lows during the year. Food inflation remained the dominant contributor, accelerating to 7.1 per cent year-on-year, while housing and utilities recorded a 3.5 per cent increase. Prices for meals consumed away from home also climbed, pushing inflation in restaurants and accommodation services to 3.9 per cent.

At Statin’s press briefing, officials emphasised that the December CPI was the first major indicator to fully capture post-Hurricane Melissa conditions, unlike recent GDP and labour market data, which reflect economic activity before the storm made landfall.

“For the consumer price indices, the data reflect post-Hurricane Melissa conditions,” the director general explained, noting that food supply disruptions and infrastructure damage had a measurable impact on prices in the weeks following the event.

Despite operational challenges caused by damaged roads, power outages and business closures, Statin said it took steps to preserve data quality. Fieldwork for the CPI was extended, and international statistical methods were applied where prices could not be directly observed.

“We adjusted accordingly and ensured that the CPI remained accurate,” she said, adding that international best-practice techniques such as class-mean imputation were used where items were temporarily unavailable.

Regionally, inflation pressures were broadly consistent. Prices rose by 1.4 per cent in the Greater Kingston Metropolitan Area during December, compared with 1.1 per cent in other urban centres and 1.3 per cent in rural areas.

While headline inflation remains within the Bank of Jamaica’s target range, December’s data suggest that price pressures are proving more persistent than earlier anticipated, particularly for essentials such as food, electricity and housing.

Tags:

December Hurricane Melissa Inflation
{"jamaica-observer":"Jamaica Observer"}
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