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Brian Wynter, BoJ Governor.The price increases of recent times are expected to continue at least for this financial quarter.
"For the March 2010 quarter, the quarter we're in now, the bank is forecasting an increase in headline inflation, albeit temporary. Inflation for this quarter is expected to be in the range of 3.5% to 4.5%," said Brain Wynter, Governor of the Bank of Jamaica (BoJ) at his first quarterly press briefing since assuming office three months ago.
The expected price increases should emanate mainly from the impact of the recent tax measures which consumers have now started to feel.
However, according to the Central Bank Governor, <span style="font-weight: bold">higher import prices are also expected to play a role in driving up prices for consumers.</span>
All this is to happen while the economy is expected to remain stagnant.
No growth has been witnessed in the last six quarters and none was evident in the one just concluded.
<span style="font-weight: bold">"Real GDP (Gross Domestic Product) is estimated to have contracted in the range of 2 to 3% for the December 2009 quarter continuing the trend we have been observing since 2008. This is due mainly to the decline in the mining and quarrying, transport, storage, communication, manufacturing and construction sectors however, it is estimated that there was strong grown in agriculture, forestry and fishing," Mr. Wynter said.</span>
As weak demand continues in the global and domestic economies, the expectation is that the declines will continue in this quarter at a pace of 1 to 2%.