Falling electricity rates pushed Jamaica’s inflation rate back into negative territory in April, offering consumers some relief from rising food and fuel costs and strengthening expectations that inflation could remain within the Bank of Jamaica’s target range in the near term.

Data released Friday by the Statistical Institute of Jamaica (STATIN) showed that the All Jamaica Consumer Price Index declined 0.3 per cent in April, reversing the 0.3 per cent increase recorded in March, as lower electricity charges more than offset higher prices for agricultural produce and petrol.

The decline was driven mainly by a 4.3 per cent fall in the index for ‘Housing, Water, Electricity, Gas and Other Fuels’, following a 12.5 per cent reduction in the ‘Electricity, Gas and Other Fuels’ group.

At the same time, food prices continued climbing.

STATIN said the ‘Food and Non-Alcoholic Beverages’ division rose 0.6 per cent during the month, largely due to a 6.2 per cent increase in fruit and nut prices, including ripe bananas, oranges and watermelon. Petrol prices also contributed to inflation pressures, pushing the ‘Transport’ division up by 1.1 per cent.

The country’s point-to-point inflation rate — a measure of prices over a 12-month period — held firm at 4.3 per cent in April, remaining within the Bank of Jamaica’s four to six per cent target range

What the latest figures suggest is that imported energy costs are continuing to play a major role in moderating inflation, even as domestic food prices remain volatile due to weather conditions and supply pressures affecting agricultural produce.

The April data also reinforce a pattern that has emerged since late 2025: inflation spikes tied to hurricanes and food shortages are gradually easing, while electricity costs are helping to dampen broader price increases across the economy.

For consumers, the figures mean monthly household expenses linked to electricity eased in April, although grocery bills remained under pressure. Rural consumers saw the largest monthly decline in prices overall at 0.4 per cent, compared with a 0.2 per cent decline in the Kingston metropolitan area.

The data may also strengthen expectations that the central bank could maintain a relatively stable monetary policy stance when its monetary policy committee meets next week if inflation continues tracking within target, reducing the likelihood of further interest rate increases that could make loans, mortgages and other forms of borrowing more expensive for consumers and businesses.

Still, food inflation remains elevated. Over the past 12 months, prices in the ‘Food and Non-Alcoholic Beverages’ division rose 6.8 per cent, led by a 26.3 per cent jump in fruit and nut prices and an 11.4 per cent increase in fish and seafood prices.

STATIN said higher prices were recorded for items including ripe bananas, pineapple, dried coconut, salted fish and canned mackerel.

Education costs also increased during the month, with preparatory school fees contributing to a 0.7 per cent rise in the education division, while accommodation prices moved higher as hotel rates increased.

April Inflation 2026