BOJ Governor Richard Byles Warns Inflation Could Rise Above Target Range

Bank of Jamaica Governor Richard Byles says inflation is projected to move higher during the June to September quarter.

Byles said the outlook reflects rising global oil prices, which are expected to add pressure to Jamaica’s electricity costs. He also indicated that local petrol prices may climb further, affecting transport expenses.

The central bank governor said inflation is likely to move past the 6 per cent ceiling of the Bank’s target band. He said follow-on price increases are expected to show up in routine home maintenance, food costs and personal care products.

Byles said how far inflation exceeds the target range will depend on the scale and length of the Middle East conflict.

Still, he said once global tensions cool and prices settle back to usual levels, Jamaica’s headline inflation is expected to slow gradually and return within the Bank of Jamaica’s target range.

He made the comments this morning at the BOJ’s quarterly monetary press conference.