Economy Update: Inflation Rate Falls

Source: STATIN
Source: STATIN

Inflation for the period September to October fell by 2 percentage points from the 2.8% rise recorded for the August to September period.

Not only is the current inflation rate less than the previous period, it is 0.1 percentage point lower than the rate for the corresponding period in 2012.

The monthly inflation rate for October 2013 was 0.8% making calendar year-to-date inflation 8.57%.

In August 2013, the Central Bank projected a rise in the inflation rate.

The Bank also said it holds the inflation projection to be between 8.5% and 10.5% for the 2013/14 fiscal year. Read more here.

Fiscal year-to-date inflation as at October 2013 was 5.7%, with 5 months to the end of the fiscal year, Jamaica is still well within the range and on target.

The document that outlines the details of the Extended Fund Facility (EFF) between the International Monetary Fund (IMF) and the Government of Jamaica (GOJ), The Memorandum of Economic Financial Policies (MEFP) paragraph ¶41 states that monetary policy (which is administered by the the Central Bank) is focused on maintaining single digit inflation.

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