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Audley Shaws predicts that inflation rise will be short lived
Finance Minister, Audley Shaw is seeking to assure the country that the recent sharp spike in inflation will be short lived.
Concerns have been expressed that Jamaica could experience another period of high inflation following the release of data which showed the average cost of living increased by nearly 17 per cent in 2007.
It was the highest annual increase recorded in over a decade.
But Mr. Shaw said there is no need to panic.
He told RJR News that key indicators point to a tempering during the 2007/2008 Financial Year.
Mr. Shaw said there are already indications that prices will begin to moderate and a lower rate of inflation is expected in the next fiscal year 2008/09.
He said if the price of oil continues to moderate, that will also affect the cost of living.
And Mr. Shaw has fired back at Opposition Spokesman on Finance, Dr. Omar Davies.
On Wednesday January 23, the former Finance Minister expressed alarm at the inflation figure for 2007.
But Mr. Shaw said Dr. Davies is fully aware of what has led to the inflation spike and is playing politics with the facts.
He said during Dr. Davies' tenure as Minister, the inflation rate went as high as 80 per cent during the 1990's.
Mr. Shaw said the world over is dealing with the escalating prices of not only oil, but also food commodities.
Minister Shaw also rejected criticisms from Dr. Davies that the Government's $500 million food subsidy programme was ineffective in protecting the poor from rising prices.
Finance Minister, Audley Shaw is seeking to assure the country that the recent sharp spike in inflation will be short lived.
Concerns have been expressed that Jamaica could experience another period of high inflation following the release of data which showed the average cost of living increased by nearly 17 per cent in 2007.
It was the highest annual increase recorded in over a decade.
But Mr. Shaw said there is no need to panic.
He told RJR News that key indicators point to a tempering during the 2007/2008 Financial Year.
Mr. Shaw said there are already indications that prices will begin to moderate and a lower rate of inflation is expected in the next fiscal year 2008/09.
He said if the price of oil continues to moderate, that will also affect the cost of living.
And Mr. Shaw has fired back at Opposition Spokesman on Finance, Dr. Omar Davies.
On Wednesday January 23, the former Finance Minister expressed alarm at the inflation figure for 2007.
But Mr. Shaw said Dr. Davies is fully aware of what has led to the inflation spike and is playing politics with the facts.
He said during Dr. Davies' tenure as Minister, the inflation rate went as high as 80 per cent during the 1990's.
Mr. Shaw said the world over is dealing with the escalating prices of not only oil, but also food commodities.
Minister Shaw also rejected criticisms from Dr. Davies that the Government's $500 million food subsidy programme was ineffective in protecting the poor from rising prices.