The plunge in world oil prices has had a positive effect on one aspect of the Jamaican economy: lower rates of inflation. For the second consecutive month, falling gas prices have brought about deflation in Jamaica’s economy with a rate of -0.4% for December. This was the first time since January and February 2011 that the economy recorded consecutive deflationary months.
For the 12 month period January to December, Jamaica recorded a remarkable inflation rate of 6.4%, the lowest annual average rate since 2011.
However, there is still some way to go to close the gap between Jamaica’s inflation rate and the US’ average annual inflation rate of 1.6%.