Despite devaluation, JA inflation rate nearing historic lows

[Islandman]

Falling global energy prices are a large part of this I am sure, but it is welcome relief nonetheless.

KINGSTON, Jamaica – Jamaica’s inflation rate continues to trend downwards closing at 40-year low of 1.8 percentage point at the end of the September quarter.

http://www.jamaicaobserver.com/lates...downward-trend

[Assasin]

also less money to spend.

[Karl]

also less money to spend.

Sass?
Less money had by whom?

...or is it; less money being spent to purchase same quantity or greater quantity of oil and other petroleum based products?

...or neither of the above? You had something else in mind?

[Assasin]

Inflation is more money chasing after the same goods. As the demand increase the price rises.

The fact that taxes and the dollar take out more money out of the system means people have less to spend which help to keep down inflation.

[Don1]

also less money to spend.

LOL!!!!! Mi Belly!!!

The Forum's Economics Professor speaks...Unnu run!!!!

[Islandman]

No, taxes do not necessarily take money out of the system. Taxes transfer money from the private ownership to govt....if the govt is spending that money it is still in circulation and it's fair to say the govt is in spending mode right now.

I do not understand what you mean when you say the dollar takes money out the system

[Assasin]

The government cut the their spending from its budget and even Byles complaining about that.

Remember also that inflation is measured mostly on consumer goods.

The average Jamaican has lost about 40 percent of their purchasing power of the last few years based on adjustment in taxes, and devaluation.

No doubt the oil price play a big role but the adjustment in spending do also as people would spend that money elsewhere.

[Mosiah]

Sorry Sass, but your understanding of what constitutes economic growth di odda day leaves me slightly reluctant to give your latest economic view any credibility.

[Islandman]

Complain? Sounds to me like he is saying that the cutting is a good thing but he doesn't expect it to continue??? How you interpret this?

Expenditure for the period April to August was an impressive $11 billion below budget, the shortfall split between recurrent expenditure at $6.8 billion (interest was $4.7 billion and wages $3.5 billion below budget), and capital expenditure was $4.2 billion (26 per cent) below budget.

However, Byles agreed that the greater than budgeted increase in the public sector wage bill of $9.3 billion would "wipe out" this good performance, so that the government would have "to find a place to cut" to offset the impact

http://www.jamaicaobserver.com/busin...Byles_19233897

[Don1]

Sorry Sass, but your understanding of what constitutes economic growth di odda day leaves me slightly reluctant to give your latest economic view any credibility.

LOL!

[Sir X]

Credibility and Johnny nuh mix, im deal wid (im) facts...lol

[Assasin]

LOL

[Assasin]

good fiscally no doubt but everytime there is cut there is some project or law off taking place.