Crop prices to drop by year-end says BoJ Governor
The Bank of Jamaica is projecting that the impact of the drought on the prices of agricultural produce should reverse by year-end.
According to BoJ Governor Brian Wynter the projection is underpinned by the assessment that most of the crops that were affected by the drought were short-term items.
He says as replanting resumes when the weather normalises, agricultural prices will go back down.
According to Wynter, the effect of the current drought became evident in the data for the month of July, when prices went up by 1.4 per cent.
The central bank governor says this contributed to the annual inflation rate of nine per cent.
Wynter says despite this increase, the 12-month inflation is expected to remain within the targeted range of seven to nine per cent for the September quarter, possibly staying in the upper end of the range in August.
Inflation outlook for the fiscal year remains in the targeted range of seven per cent to nine per cent.
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