JAMAICA’S producer prices for food and beverages rose in August, driven by a weaker domestic currency that increased costs for manufacturers even as a fall in global oil prices provided some offset, official data showed on Thursday.
The Producer Price Index (PPI) for the manufacturing sector edged down 0.1 per cent in August from July, the Statistical Institute of Jamaica (Statin) said. However, the marginal decline masked a sharp divergence between sectors. Prices for refined petroleum products fell 1.4 per cent month on month, reflecting lower crude oil costs on international markets. In contrast, prices for food, beverages and tobacco rose 0.2 per cent, with notable increases in dairy products (1.5 per cent) and seasonings and condiments (2.2 per cent).
Statin attributed the food price increases to higher raw material and overhead costs, exacerbated by the depreciation of the Jamaican dollar against the US dollar.
Year on year, the manufacturing PPI rose 1.9 per cent in August, with the food, beverages and tobacco group up 3.1 per cent.
In the mining and quarrying sector, which is dominated by bauxite and alumina, the PPI increased 0.2 per cent in August. Statin said the increase was primarily due to a 0.2 per cent rise in the bauxite mining and alumina processing group, also linked to the weaker Jamaican currency.
Over the 12 months to August the mining sector PPI declined 6.6 per cent.
The data suggests persistent, underlying price pressures in Jamaica’s import-dependent economy, even as volatile fuel costs provide temporary relief. The PPI, which measures the average change in selling prices received by domestic producers, is a leading indicator of consumer inflation. The figures will be closely watched by policymakers for signals on whether these producer-side cost pressures will filter through to retail prices in the coming months.
