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The current turmoil in the world oil market could result in an inflation nightmare for Jamaica.
With analysts still forecasting the price for oil to reach $100 per barrel before year end, Jamaicans are being warned to brace for a sharp increase in the cost of living.
Already there are indications of a pending rise in transportation costs which have a significant impact on the Consumer Price Index (CPI).
With other areas of the economy expected to feel the effects of the fuel price hike, Financial Analyst Orvillle Johnson is predicting that inflation for this fiscal year will be higher than projected by the Government.
"It's going drive inflation even higher. The numbers for September are just out which showed a 1.6 per cent inflation rate up on the previous month," said Mr. Johnson.
"Already on the calendar year to date it is already over eight per cent and when one takes into consideration after nine months that last year after the entire year we are looking at eight per cent we realize that things are getting worse in terms of the cost of living,"
"With the fuel price moving towards US$100 per barrel on the global market and there are no signs of it slowing down because we are entering the winter season which is a high demand season," he continued.
With analysts still forecasting the price for oil to reach $100 per barrel before year end, Jamaicans are being warned to brace for a sharp increase in the cost of living.
Already there are indications of a pending rise in transportation costs which have a significant impact on the Consumer Price Index (CPI).
With other areas of the economy expected to feel the effects of the fuel price hike, Financial Analyst Orvillle Johnson is predicting that inflation for this fiscal year will be higher than projected by the Government.
"It's going drive inflation even higher. The numbers for September are just out which showed a 1.6 per cent inflation rate up on the previous month," said Mr. Johnson.
"Already on the calendar year to date it is already over eight per cent and when one takes into consideration after nine months that last year after the entire year we are looking at eight per cent we realize that things are getting worse in terms of the cost of living,"
"With the fuel price moving towards US$100 per barrel on the global market and there are no signs of it slowing down because we are entering the winter season which is a high demand season," he continued.