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Hyman not impressed with inflation projection
Financial Analyst Ralston Hyman says he’s not impressed with the lowering of the inflation projection for the current fiscal year as announced by the Bank of Jamaica (BOJ).
The BOJ had earlier predicted that the inflation rate would be between 7.5 and 9.5 per cent.
However, now it’s now expecting inflation or the cost of living, to end up between 6 and 8 per cent this financial year.
According to Hyman, the BOJ should be focusing more on deflation than inflation.
Hyman says Jamaica’s inflation projection when compared with other major trading partners is at least 6 points higher.
He says this also shows an inconsistency between the current inflation rate and the exchange rate.
The value of the local currency is one of the key indicators of economic performance.
The BOJ says for the fiscal year up to August 25, the Jamaican dollar gained 4.3 per cent in value over the US dollar.
In July, Jamaica recorded an inflation rate of 3 per cent which was at the lower end of the original forecast by the Bank of Jamaica.
Financial Analyst Ralston Hyman says he’s not impressed with the lowering of the inflation projection for the current fiscal year as announced by the Bank of Jamaica (BOJ).
The BOJ had earlier predicted that the inflation rate would be between 7.5 and 9.5 per cent.
However, now it’s now expecting inflation or the cost of living, to end up between 6 and 8 per cent this financial year.
According to Hyman, the BOJ should be focusing more on deflation than inflation.
Hyman says Jamaica’s inflation projection when compared with other major trading partners is at least 6 points higher.
He says this also shows an inconsistency between the current inflation rate and the exchange rate.
The value of the local currency is one of the key indicators of economic performance.
The BOJ says for the fiscal year up to August 25, the Jamaican dollar gained 4.3 per cent in value over the US dollar.
In July, Jamaica recorded an inflation rate of 3 per cent which was at the lower end of the original forecast by the Bank of Jamaica.