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Consumers urged to brace for sharp increases in the cost of living
Former Finance Minister Dr. Omar Davies is alerting Jamaicans to brace for increased hardship with the prospect of a further sharp increase in the cost of living.
He has also poured cold water on the Bank of Jamaica's prediction that inflation could slow down during the current quarter.
Dr. Davies says the Bruce Golding administration has so far demonstrated its inability to bring the situation under control and protect the most vulnerable from the onslaught of rising prices.
Reacting to the 2.2 per cent increase in inflation last month, the Opposition Spokesman on Finance says inflation for the fiscal year could end up at above 20 per cent.
He warned that this will have repercussions for the economy.
"For inflation at that rate interest rates have to move up and if interest rates move up then debt servicing costs will move up and so there is a whole range of negative spin offs with which the country will have to deal," said Dr. Davies.
Dr. Davies warned that if the Government fails to take steps to temper the rapid movement in prices, economic and social stability could be undermined.
He again criticised the Government's $500 million assistance package to help Jamaicans dealing with rising prices.
"We had difficulties with how it was structured and clearly has had no impact and it cannot address the overall structural problems there has to be a comprehensive presentation from the government to give a sense of direction," he continued.
Former Finance Minister Dr. Omar Davies is alerting Jamaicans to brace for increased hardship with the prospect of a further sharp increase in the cost of living.
He has also poured cold water on the Bank of Jamaica's prediction that inflation could slow down during the current quarter.
Dr. Davies says the Bruce Golding administration has so far demonstrated its inability to bring the situation under control and protect the most vulnerable from the onslaught of rising prices.
Reacting to the 2.2 per cent increase in inflation last month, the Opposition Spokesman on Finance says inflation for the fiscal year could end up at above 20 per cent.
He warned that this will have repercussions for the economy.
"For inflation at that rate interest rates have to move up and if interest rates move up then debt servicing costs will move up and so there is a whole range of negative spin offs with which the country will have to deal," said Dr. Davies.
Dr. Davies warned that if the Government fails to take steps to temper the rapid movement in prices, economic and social stability could be undermined.
He again criticised the Government's $500 million assistance package to help Jamaicans dealing with rising prices.
"We had difficulties with how it was structured and clearly has had no impact and it cannot address the overall structural problems there has to be a comprehensive presentation from the government to give a sense of direction," he continued.
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