Edmond Campbell, News Coordinator

Dr Omar Davies, opposition spokesman on finance, yesterday warned that sharp increases in the cost of basic food items could threaten social stability in the nation.

Davies, in his first ever Budget Debate presentation from the opposition benches, lambasted his successor in the finance ministry, Audley Shaw, for failing to comment on the local impact of the developing international crisis.

In recent weeks, the nation has seen increases in the cost of rice and chicken meat, and a 32 per cent spike in the cost of flour.

Worrying factor

Yesterday, in describing the 20 per cent inflation outturn for the 2007-2008 fiscal year as a "worrying" factor, Davies argued that of greater concern to the opposition was the subsector of food, which constitutes 55 per cent of the consumer price index (CPI) basket for lower-income households.

The 20 per cent jump in inflation is the highest in the last decade.

"When such households are faced with non-negotiable increases in their utility bills and food prices increase over the fiscal year by over 25 per cent, as certified by STATIN (Statistical Institute of Jamaica), then logically, there must be many households in crisis," Davies contended.

According to the opposition spokesman, who led the finance ministry for 14 years until last September's general election, "unless steps are taken to moderate the rate of increase in prices, we will be facing a major social challenge in terms of household survival".

In opening the 2008- 2009 Budget Debate last Thursday, Shaw said the rate of increase in commodity prices on the world market was expected to slow down during the year.

However, Davies cautioned there was no evidence to support the minister's projection. He said that if the Government's nine-10 per cent inflation target for the current financial year was not met, the country would face "rough seas on both the economic and social fronts".

Last night, Agriculture Minister Dr Christopher Tufton, who will make his contribution to the Budget Debate today, told The Gleaner he would provide a response to the obvious crisis.

edmond.campbell@gleanerjm.com