BOJ expects inflation to remain outside 4-6% target until 2025

 

The Bank of Jamaica is projecting the cost of goods and services to remain outside the 4 to 6 per cent target range until June next year.

 

At the central bank's monetary policy press briefing on Wednesday, BOJ Governor Richard Byles said a number of temporary price shocks are expected to affect inflation. 

 

"Higher than projected second-round effects from the PPV fare increase, higher wage adjustments in the context of a tight labour market and a further deterioration in supply chain conditions could influence higher inflation. In particular, while shipping prices and oil prices have remained below their peak, they have recently risen amid ongoing geopolitical tensions and supply chain disruptions," the BOJ governor explained.

 

But Mr. Byles said lower than projected inflation could be caused by weaker than projected global growth, which could reduce domestic demand and imported inflation, resulting in lower rates of price change in Jamaica.

 

Annual inflation as at January 2024 was 7.4 per cent.