Inflation slows to 10.9 per cent at June
Published:Friday | July 22, 2022 | 12:09 AM
The Statistical Institute of Jamaica, Statin, recorded inflation for the country at 10.9 per cent over 12 months to June 2022, the same rate of price increases recorded a month earlier. This shows that price rises slowed over the two months from a high so far this year of 11.8 per cent at April.
Notwithstanding the apparent moderation in point-to-point inflation, the price of basic food items increased by double digits over the 12 months. This was reflected in the price of food and non-alcoholic beverages going up 13.7 per cent; transport, up 15.6 per cent; and restaurants and accommodation services leading the volume of price increases, up 22.4 per cent.
“The index for the food and non-alcoholic division was due to higher prices in cereal, up 15 per cent; and meat and slaughtered animals, 20 per cent,” Statin Director General Carol Coy said at the agency’s quarterly press briefing on July 15.
Inflation in the month of June was 0.8 per cent. This increase, Statin explained, was mainly impacted by the 1.7 per cent rise in the heaviest weighted division, which was food and non-alcoholic beverages.
“All classes registered increases during the period, with the main contributors being oils and fat, up 2.5 per cent; vegetables, tubers, bananas for cooking, up 2.2 per cent; cereals, up 1.9 per cent, meat and other slaughtered land animals, up 1.8 per cent,” Coy said about price movements in June.
Higher fuel prices have been affecting much of the world since February when Russia, a large oil-producing nation, invaded its neighbour Ukraine. Outside of impacting on inflation, oil prices have swelled Jamaica’s expenditure on imports, which grew 38.7 per cent between January to March 2022 to US$1.8 billion, while total exports dipped 5.5 per cent to US340.5 million.
“This was due to rises in fuel, lubricants, raw materials and consumer goods,” Coy pointed out, adding that the drop in output from the mining industry by half had negatively impacted exports during the period.
Turning to the economy generally, Statin confirmed the 6.4 per cent growth between January to March relative to the similar period a year earlier. The services industry grew 8.9 per cent, while the goods-producing industry grew 0.4 per cent.
“The performance in the economy reflected the continued recovery from the negative impacts of the COVID-19 pandemic,” according to the Statin director general.
She noted that the relaxation of global travel restrictions and easing of COVID-19 measures are providing a fillip to growth, particularly in the hotels and restaurants industry, which grew 107.1 per cent. Another industry that registered growth was transport, storage and communication, up 8.8 per cent, while the wholesale and retail trade improved by 8.8 per cent.
Meanwhile, Statin plans to start its nationwide population and housing census in September. Data collection will become on September 13 and the tag line for this decade’s census is ‘Yuh count, mi count, all a wi count’.
Statin also gave an update on the employed labour force, which it measured as totalling 1.27 million, up 5.2 per cent, compared to April 2021.
“These are persons who were engaged in economic activity for at least one hour during the reference week,” said Coy.
Some 691,600 men and 577,700 women were employed. Real estate, followed by construction, absorbed the lion’s share of the newly employed in the period.
Turning to the unemployment rate, it is said to have dipped to 6.0 per cent in April, down from 9.0 per cent a year earlier. There are 746.400 persons outside the labour force who are said to be not seeking employment. These include the elderly, students of adult age, the sick and vulnerable, and persons who are pregnant, among others.