‘Food and non-alcoholic beverages’ primary contributor for large hike

Durrant Pate/Contributor

Jamaica’s inflation for August 2024 has made the biggest monthly jump of 2.4 per cent, as the All-Jamaica Consumer Price Index (CPI) increased to 140.7, up from 137.5 in July 2024.

The Statistical Institute of Jamaica (STATIN), which measures Jamaica’s inflation reports that the largest contributor to this upward movement was a 4.1 per cent increase in the index for the division ‘Food and Non-Alcoholic Beverages’. The increase in the ‘Food and Non-Alcoholic Beverages’ division was the highest monthly increase since the revision of the CPI in April 2020. 

For August 2024, the index of the ‘Food’ group increased by 4.3 per cent, while the ‘Non-Alcoholic Beverages’ group went up by 0.4 per cent. The rise in the ‘Food’ group was mainly attributed to a 15.5 per cent increase in the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’. 

Food shortages driving up prices

This resulted from higher prices for most agricultural produce as a result of supply shortages caused by Hurricane Beryl’s impact on the agricultural sector. The ‘Housing, Water, Electricity, Gas and Other Fuels’ division, which rose by 3.7 per cent, had the second largest impact on the monthly inflation rate. 

This was largely influenced by a 10.6 per cent increase in the group ‘Electricity, Gas and Other Fuels’ due to increased electricity rates. Tempering these increases was a 0.2 per cent fall in the index for the ‘Transport’ division mainly due to reduced petrol prices. 

BOJ’s 4-6% inflation target barrier breached

The point-to-point inflation rate (August 2023 – August 2024) was 6.5 per cent, which is 1.4 percentage points higher than the rate for July 2024. This was influenced mainly by increases in the divisions: ‘Food and Non-Alcoholic Beverages’(6.3%), ‘Transport’ (10.3%) and ‘Housing, Water, Electricity, Gas and Other Fuels’(8.0%). 

The calendar year-to-date inflation rate was 2.9 per cent. The Consumer Price Index (CPI) measures changes in the general level of prices for consumer goods and services purchased by private households.