Inflation down in May but still at 10.3 per cent

The Central Bank of Trinidad & Tobago on Friday announced that the annual inflation rate in the country for the month of May declined but still remains in double digits.

In a bulletin it said headline inflation slowed to 10.3 per cent in May from 11.9 per cent in the previous month. Food remains the main contributor to headline inflation.

It was 19.6 per cent in the twelve months to May compared with 25.2 per cent in April. The bank said when food inflation is removed from the figures the "core inflation" rate was 5.8 per cent, which represented a reversal of the upward trend.

The Bank said it is still uncertain as to whether the significant reduction in inflation is the start of a downward trend. It said the inflation figure coincides with a slowing in domestic economic activity.

"Under these circumstances, the Bank has decided to reduce the “Repo” rate by 50 basis points to 7.50 per cent. That's the official overnight interest rate at which banks can borrow money from the Central Bank in order to avoid a scarcity of funds.

Read the details from the CB