In T&T: Central Bank: Slight dip in inflation rate

30 January 2012


Latest repo rate announcement indicates prevailing low confidence within T&T, highlighted by core inflation figures (< 2.0%)..

THE rate of inflation in Trinidad and Tobago slowed in the final month of last year, the Central Bank said yesterday.

The final figures released by the Central Statistical Office for 2011 indicate that headline inflation slowed to 5.3 per cent on a year-on-year basis in December from 5.7 per cent in the previous month.

On a monthly basis, headline inflation increased by just 0.1 per cent in December compared to an increase of 1.2 per cent in November, 2011, the bank said in its Repo report.

Food prices rose by 10.9 per cent in December following the 12.3 per cent increase in November.

“Over the course of the year there had been a notable volatility in the movement of food prices initially characterised by a steep deceleration in the 12-month rate from 30.9 per cent in January to 0.3 per cent by August,” the bank said.

The subsequent uptick was largely associated with flooding in several agricultural districts The December data showed that the fastest rises in food prices occurred for fruits, oils, fats and fish.

Since the middle of 2011, core inflation has stayed under 2.0 per cent, reflecting weak underlying demand pressures in the economy, the bank noted.

There has been no reliable evidence of an improvement in economic conditions, the report added.

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