INFLATION remained elevated in July, though easing slightly to the lowest it has been since January.

Data from the Statistical Institute of Jamaica (Statin) show prices rose on average by 10.2 per cent over the twelve months to July. That was slightly down from the 10.9 per cent point-to-point inflation recorded in June. The out-turn up to July was also the lowest since prices rose by 9.7 per cent for the twelve months leading up to January.

For the month alone, prices rose 0.7 per cent.

Statin said the inflation in July was stoked by higher prices for food and non-alcoholic beverages as well as vegetables, tubers, plaintains, cooking bananas and peas and beans. Higher costs for meat and cereals also influenced food price inflation in July. Higher prices for petrol and the toll increase in July also contributed to July inflation.

The inflation data come ahead of the Bank of Jamaica’s monetary policy decision which should be announced on Thursday.

After its last meeting in June, the central bank’s monetary policy committee (MPC) unanimously agreed to increase the policy rate by 50 basis points to 5.50 per cent. The MPC also decided to continue pursuing other measures to contain Jamaican-dollar liquidity expansion and maintain relative stability in the foreign exchange market.

The BOJ, at the time, pointed out that while headline inflation may fall below the peak range of 12 per cent to 15 per cent indicated in its previous forecast, the data it was seeing up to June did not suggest that its most recent inflation forecast for the next two years is likely to change. That forecast is for inflation to average 8 per cent to 9 per cent over the next two years, as long as tensions between Russia and Ukraine do not escalate and inflation among Jamaica’s trading partners falls.

Inflation has remained above the central bank’s target range of 4 per cent to 6 per cent since August last year.