The Central Statistical Office in Port of Spain said Friday headline inflation in Trinidad and Tobago dropped to 0.8 per cent in June from 3.9 per cent in the previous month.
It's the lowest inflation rate in decades. A release from the Central Bank said the last time inflation was so low was in 1969.
However the bank also said business activity is "lethargic" and the pace of economic recovery continues to be weak.
It's the lowest inflation rate in decades. A release from the Central Bank said the last time inflation was so low was in 1969.
However the bank also said business activity is "lethargic" and the pace of economic recovery continues to be weak.
It said "there is room for monetary policy to provide additional impetus to private sector economic activity." As a consequence, the Bank said it has decided to lower the “Repo” rate by 25 basis points to three per cent. That's the rate banks charge their best clients. It is used to set the overall cost of borrowing.
The bank said food inflation, which has been the major driver of the headline inflation rate, decelerated to 0.1 per cent (year-on-year) in June from 8.2 percent in May. It attributed it to a 12.1 per cent decline in vegetable prices.
For example, the price of tomatoes was down 40.3 per cent in June, pumpkin went down 10 per cent, cucumber cost 11.4 per cent less, the price of christophene dropped 42.7 per cent and pakchoi was down 10.5 per cent.
Slower price increases for fruits (18.8 percent in June compared with 19.7 percent in May), meat (10.5 percent compared with 12.0 percent) and fish (5.4 percent compared with 7.6 percent) also contributed to the lower food inflation rate.
Other foods went up. Bread and cereals, oils and fats, and sugar and confectionery products all increased in June.
The Bank noted that although favourable weather conditions and an increase in acreage under cultivation are contributing to higher domestic crop yields, there are signs that high international prices are starting to influence some local food prices.
The bank said food inflation, which has been the major driver of the headline inflation rate, decelerated to 0.1 per cent (year-on-year) in June from 8.2 percent in May. It attributed it to a 12.1 per cent decline in vegetable prices.
For example, the price of tomatoes was down 40.3 per cent in June, pumpkin went down 10 per cent, cucumber cost 11.4 per cent less, the price of christophene dropped 42.7 per cent and pakchoi was down 10.5 per cent.
Slower price increases for fruits (18.8 percent in June compared with 19.7 percent in May), meat (10.5 percent compared with 12.0 percent) and fish (5.4 percent compared with 7.6 percent) also contributed to the lower food inflation rate.
Other foods went up. Bread and cereals, oils and fats, and sugar and confectionery products all increased in June.
The Bank noted that although favourable weather conditions and an increase in acreage under cultivation are contributing to higher domestic crop yields, there are signs that high international prices are starting to influence some local food prices.
The increases in the global prices of some key staples such as grain and dairy products are now being reflected in higher local prices for bread, eggs and edible oils.
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