Diesel hike and toll rises set to lift transport costs as June inflation hits 6.7%

Economic analysts have cautioned that last week’s $12.50 jump in automotive diesel prices, combined with planned toll increases, is expected to push transportation costs higher across Jamaica.

Speaking with RJR News, the analysts said the added expense could intensify inflationary pressure. Consumer prices rose 0.8% in June from May, while the 12-month inflation rate reached 6.7%, above the Bank of Jamaica’s 4% to 6% target band.

The Statistical Institute of Jamaica attributed much of June’s inflation movement to transport, reporting a 4.3% rise in the transport index over the 12 months to June. The transport index was also reported to have climbed 7.3%.

Business confidence improved by 2.3% in the latest business and consumer confidence indices, based on a survey of 116 firms. Presenting the findings Tuesday morning, Don Anderson, chairman of Market Research Services Limited, said confidence rose in the second quarter but remains below levels seen in 2025 and earlier periods.

“But that’s the pattern over the years. Businesses aren’t as erratic as consumers for want of a better word,” Anderson said. He added that “there is a jagged edge to each of the years, but not another peak that you saw consumers responding to political pressure, political promises, etc.”

Consumer confidence, meanwhile, fell 2.3%. Anderson linked the decline to higher living costs and a weaker view of business conditions, noting, “Fewer and fewer persons are considering that the current business conditions are good.”

On the Jamaica Stock Exchange for July 21, 2026, TransJamaican Highway Limited led activity with 7,197,608 units traded, or 27.62% of market sales. Lasco Financial Services Limited followed with 1,927,207 units (7.39%), while TransJamaican Highway Limited’s US-dollar shares saw 1,530,641 units change hands (5.87%). Trading remained concentrated in transportation, finance and distribution stocks.

Bank of Jamaica figures for the same date showed the US dollar selling at $159.63 and buying at $157.49. The Canadian dollar sold at $113.40 and bought at $112.91, a 49-cent spread. The British pound sold at $212.61 and bought at $211.98.