The Bank of Jamaica is projecting that inflation will again exceed its 4 to 6 per cent target range this year, before again leveling off by the end of the year.
At the central bank's monetary policy press briefing Monday morning, BOJ Governor Richard Byles said the cost of goods in the June quarter will likely exceed the target range for the June and September 2023 quarters.
"Higher than projected future wage adjustments, a stronger than anticipated impact of climate change on domestic agricultural prices and worsening supply chain conditions could put upward pressure on inflation," he noted.
"Further, higher than projected interest rates among the major developed economies could worsen the interest differential, thereby putting pressure on the exchange rate, which would contribute to higher inflation in the economy," the BOJ governor added.
The average inflation for those periods is projected to be between 6 to 6.5 per cent.
However, the rate is expected to return to the target range by December and stay there going into 2024.
Mr. Byles said the higher inflation will be driven by a number of factors.
Annual inflation as at April stood at 5.8 per cent, the lowest since August 2021.
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