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Food prices drive inflation to 8.6%
Business
October 16, 2026

Food prices drive inflation to 8.6%

JAMAICA’S annual inflation rate climbed to 8.6 per cent in September, its highest level since December 2022, as rising food prices increased pressure on household budgets.

Consumer prices rose by 1.5 per cent during the month, compared with 0.6 per cent in August, according to figures released Thursday by the Statistical Institute of Jamaica (Statin). Higher agricultural produce prices were the main driver, alongside increases in electricity rates, housing rentals and private primary school tuition.

The food and non-alcoholic beverages division recorded a monthly increase of 2.9 per cent, led by a 10.5 per cent rise in the category covering vegetables, tubers, plantains, cooking bananas and pulses.

“This was driven by higher prices for agricultural produce such as tomato, carrot, lettuce, pumpkin, Irish potato and sweet potato,” Statin said.

The increase left food and non-alcoholic beverage prices 12.4 per cent above their September 2025 level, considerably outpacing the overall inflation rate. Food alone, excluding beverages, cost 12.6 per cent more than a year earlier.

The annual inflation figure measures the change in the general price level over 12 months, while the monthly figure captures the additional increase between August and September. Both show households facing a faster rise in living costs.

Within the broad agricultural produce category, the bulletin recorded a 14.4 per cent monthly increase in the vegetable index. The separate index for starchy foods, including tubers, plantains and cooking bananas, rose by 3.4 per cent.

The pressure extended beyond vegetables. Fruit and nut prices increased by 1.8 per cent during September, influenced by higher prices for watermelon, pineapple and orange. Fish and seafood prices rose by 1.3 per cent, largely reflecting increases for salted fish and salted mackerel.

All classes within the food and non-alcoholic beverages division recorded monthly increases.

Over the full year, prices in the category covering vegetables, tubers, plantains, cooking bananas and pulses rose by 26.8 per cent, while fruit and nut prices increased by 25.6 per cent.

Transport was another major contributor to annual inflation, with prices 14.6 per cent above September 2025 levels. Statin attributed that movement primarily to higher route taxi and hackney carriage fares, alongside increased petrol prices.

Passenger transport services rose by 15.4 per cent over the year, while the index for fuels and lubricants for personal transport equipment increased by 24.8 per cent.

The monthly movement in transport was more modest at 0.3 per cent. Higher petrol prices drove a 1.4 per cent increase in the cost of operating personal transport equipment.

September also brought additional expenses for some families at the start of the school term. The education index increased by 4.0 per cent, reflecting higher tuition fees at private primary schools. School books and stationery also became more expensive, contributing to a 0.2 per cent rise in the recreation, sport and culture division.

Housing and utility costs added to the monthly increase. The housing, water, electricity, gas and other fuels division rose by 0.7 per cent, mainly because of higher electricity and rental rates. Lower water supply and sewage rates provided a partial offset.

Compared with a year earlier, the housing and utilities division was up 4.5 per cent.

Price increases were strongest outside the Greater Kingston Metropolitan Area during September. Rural areas recorded monthly inflation of 1.7 per cent, followed by other urban centres at 1.6 per cent and Greater Kingston at 1.1 per cent.

Since the start of the calendar year, consumer prices have increased by 3.9 per cent. The increase since March, which measures inflation for the financial year to date, stood at 5.7 per cent.

September marked the fifth consecutive month of rising consumer prices, with food remaining the principal source of the latest monthly increase.

{"jamaica-observer":"Jamaica Observer"}
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