Durrant Pate/Contributor

General prices in Jamaica inched up one per cent in June 2023, resulting in inflation for the year rising to 6.3 per cent, as reported by the Statistical Institute of Jamaica (STATIN).

The main driver of the one per cent monthly increase was a 1.3 per cent rise in the index for the heaviest weighted division ‘Food and Non-Alcoholic Beverages’, which followed a 5.3 per cent increase in the index for the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class.

This was due higher prices for products, namely: carrot, tomato, lettuce, yam and onions. The inflation rate for June was also influenced by the ‘Restaurants and Accommodation Services’ division climbed by 4.2 per cent due to higher prices for meals and drinks consumed away from home.

The Jamaican Government’s approval of a 44.4 per cent increase in the national minimum wage, resulted in a 6.4 per cent increase in the index for the ‘Furnishings, Household Equipment, and Routine Household Maintenance’ division.

Inflation tempered by decline

However, the overall rate of inflation was tempered by a 0.8 per cent decline in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division due to lower electricity, water, and sewage rates. The point-to-point inflation rate (June 2022 – June 2023) was 6.3 per cent.

This was influenced mainly by the point-to-point inflation rate for the divisions: ‘Food and Non-Alcoholic Beverages’ (10.3 per cent), ‘Restaurants and Accommodation Services’ (12.8 per cent) and ‘Furnishings, Household Equipment and Routine Household Maintenance’ (11.4 per cent). For the fiscal year-to-date the inflation rate was 1.6 per cent.

The index for ‘Food and Beverage Serving Services’ rose by 12.9 per cent and was the main factor impacting the index for the ‘Restaurants and Accommodation Services’ division. This increase was due to higher costs for beef patties, and meals consumed away from home, at cook shops and fast-food restaurants.

The increase in ‘Furnishings, Household Equipment, and Routine Household Maintenance’ division was largely impacted by the 14 per cent increase in the ‘Goods and Services for Routine Household Maintenance’ group.

The fall in the index for the ‘Transport’ division, resulted from lower cost for fuels, with the index for the class ‘Fuel & lubricants for personal transport equipment’ decreasing by 13.0 per cent.

Individual divisions saw the following changes:

• Food and Non-Alcoholic Beverages: (+1.3 per cent)
• Alcoholic Beverages, Tobacco and Narcotics: (+ 0.3 per cent)
• Clothing and Footwear: (+ 0.4 per cent)
• Housing, Water, Electricity, Gas and Other Fuels: (-0.8 per cent)
• Furnishing, Household Equipment and Routine Household Maintenance: (+ 6.4 per cent)
• Health: (+ 0.4 per cent)
• Transport: (0.0 per cent)
• Information and Communication: (0.0 per cent)
• Recreation, Sport and Culture: (+ 0.3 per cent)
• Education: (0.0 per cent)
• Restaurants and Accommodation Services: (+ 4.2 per cent)
• Insurance and Financial Services (0.0 per cent)
• Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.3 per cent)