The Bank of Jamaica (BOJ) has lowered its projection for inflation over the next year.
This was linked to the deferral of the second increase in public passenger vehicles fares, which was scheduled for last month, but has been postponed by the government.
The BOJ says processed food prices and the cost of meals away from home were also revised downward due to lower international grain prices.
However, the central bank says despite the lower average annual inflation experienced as at March and April, it expects prices to exceed the 4 to 6 per cent target range at the end of June.
In its latest report, the BOJ's Monetary Policy Committee says this would mainly be linked to seasonally higher agricultural food inflation, a normalisation in electricity rates following declines in the same quarter of 2023, as well as higher transport costs due to an uptick in international oil prices.
However, inflation after June is projected to return to the target range, and generally remain there over the next eight quarters, except for a few months in 2025.
All feeds
