Consumers will begin to see the impact of the recent imposition of a sugary tax, as GraceKennedy, one of the largest manufacturers in the island, has announced an average 9per cent price increase on non-alcoholic sweetened beverages.

The price increase is effective this Friday May 1 with the company citing the Government’s new sugar-content-based tax and other cost increases for the price hike.

In an April 24 notice to its distributors, the Jamaican food conglomerate explains that the increase applies to general trade customers and covers “non-alcoholic sweetened beverages”, along with “other products affected by cost increases”.

The notice says, “the increase in non-alcoholic sweetened beverages has become necessary due to the introduction of the Special Consumption Tax by the government based on sugar content…As a result, we are unable to absorb the additional costs at this time.”

It is expected that other manufacturers of non-alcoholic sweetened beverages will follow Grace in hiking their prices. This price movement is expected to trigger an upward movement in inflation given the heavy weighted value of foods and drinks in inflation measurement.