Inflation is heavily impacted by the cost of foodstuff. Local foods have been increasing in price since Hurricane Dean, which wiped out several crops in August. - file

Prices shot up more than three per cent in the month of November to push calendar inflation to 14 per cent, Jamaica's premier data collection agency, Statistical Institute of Jamaica (Statin), has reported.

The hikes were linked largely to the increased price of food and higher fuel bills.

The Opposition People's National Party (PNP) immediately attacked the Government for failing to keep reins on the currency and interest rates, saying that they have served to justify price hikes on consumers by the deliverers of goods and services.

The dollar is now valued about $71 to the United States', while benchmark interest rates have been running from 13 to 14 per cent.

Gov't responsibility

"The Government must take full responsibility for the devaluations and interest rate increases which have taken place since assuming office," said a PNP release.

"These movements have not only provided justification for some of the increases which have been imposed, particularly on basic foodstuff, but have also allowed importers to add an extra percentage, in anticipation of further deterioration."

Fiscal-year inflation

Statin also reported that fiscal-year inflation had reached 11.2 per cent.

At that rate, fiscal inflation appears on target to reach 16.8 per cent, by Financial Gleaner estimates, which more than doubles the six-to-seven-per-cent projection by the PNP before they were ousted from power.

Inflation is now being measured on an expanded basket of goods introduced officially in August. The index since then has grown to 114 points.

The base year is now December 2006.

The November movements captured increases in all categories - excluding communications and education - with the top-three being 'Food' rising by 6.1 per cent, followed by 'Housing, Water, Electricity, Gas and other Fuels' at 3.0 per cent, and 'Clothing/Foot-wear' up 2.4 per cent.

"In fact, the increase in prices for the past three months (September to November) is approximately 6.4 per cent, more than the increase of 5.8 per cent for all of 2006," said the PNP.

"Of further concern is the fact that the increase in the area 'Food and Non-Alcoholic Beverages', where the bulk of the income of low-income families is spent, was twice the overall rate."

business@gleanerjm.com