Jamaicans grappling with inflation

The increased rate of inflation reflected in the general price level for goods and services is affecting many Jamaicans. The Bank of Jamaica (BOJ), on their website, shared that Jamaica’s monetary policy objective is to achieve an inflation target of 4.0 to 6.0 percent per annum over the medium term.

This inflation target, according to the BOJ, is considered most optimal to support Jamaica’s long-run growth and is also consistent with the programmed reduction in public debt.

However, the recent inflation breach of 6.1 percent in August of 2021 has left some Jamaicans grappling with the cost of living.

Jermaine Jackson told the Jamaica Monitor that his salary is not enough to cover his daily expenses. He shared, “The word insufficient is an understatement and what I realize is that the money that I have been saving is being used. Therefore, I am using all my money and it is still not sufficient, especially considering the increase in taxi fares. So going to and from work has literally become a hand-to-mouth!” he said.

Entrepreneur George Miller has similar issues with the rate of inflation. In an interview with the Jamaica Monitor he said that the rise in prices has negatively affected his business. “I get my raw materials from overseas and I have to be buying US dollars the cost of which is very high. So, say you get the US dollar now for $150, the thing about it, next month, the dollar might go up to $160 for example. This destabilizes you because most of the time you would have to end up absorb it because you cannot be unstable with your client to pass on the cost so frequently,” he said.

He added that there was a 30 percent price increase in the supplies he buys overseas. He attributed this increase to the global economic impact of the COVID-19 Pandemic and the lessened demand for certain products.

Rosheka Love-Brown who also felt the negative effects of inflation said, “The constant increase has dampened my spending power, because I am now able to buy less with the same money, which is not lasting as long as it used to.” She added that she had to start a business to ease the effects of inflation. However, she noted that it was not easy. She told the Monitor that her business requires her to act as a courier and with the increase in gas prices, she has had to go into her profits.