Jamaica Inflation Eases a Bit but Prices Still Biting Hard

KINGSTON, Jamaica — Good news? Bad news? Depends on how you look at it. Jamaica's inflation rate dropped slightly in May, coming in at 4.9 percent year-over-year, down from 5.2 percent in April. That's according to the latest figures from the Statistical Institute of Jamaica (STATIN) released on Monday. But before you start celebrating, ask any market woman at Coronation Market in Kingston if she's seen prices come down. The answer is a flat no.

The main driver of inflation remains food prices. STATIN reports that the food and non-alcoholic beverages index rose by 6.8 percent over the last twelve months. Things like vegetables, bread, and cooking oil are what's pushing up the cost of a basket of goods. And it's not just food. Transport costs went up by 3.5 percent, thanks to higher gas prices and bus fares. Utilities like electricity and water also climbed, putting more pressure on household budgets.

Bank of Jamaica (BOJ) Governor Richard Byles said last week that the central bank's tight monetary policy is working, but slowly. “We expect inflation to remain within our target range of 4 to 6 percent for the rest of 2025, but we are watching global oil prices and weather patterns closely,” he told reporters after the May policy meeting. The BOJ has kept its key interest rate at 6.75 percent since February, hoping to cool demand without choking growth.

But for everyday Jamaicans, the numbers don't tell the full story. I spoke with Marcia Thompson, a 52-year-old vendor at Papine Market in St. Andrew who sells fruits and vegetables. She says her customers are buying less. “Mi see di same inflation, but mi customers affi cut back. Dem used to buy five pound a yam, now dem buy two. Di prices high still, and di market rough,” she told me, shaking her head. Marcia says her own cost of living has gone up, and she's had to raise prices just to cover her supplies.

Small business owners are feeling it too. In downtown Kingston, shopkeeper David Brown says his sales have dropped 15 percent since March. “People have less money to spend. Di inflation might be lower, but it still high enough to hurt,” he said. He's stopped ordering some imported goods because the exchange rate makes them too expensive.

What's the takeaway? Inflation is easing, but slowly. Prices are not dropping—they're just rising at a slower rate. For now, the best advice is to shop smart. Buy local produce when you can, compare prices at different markets, and avoid unnecessary loans. And if you're planning a big purchase, wait a few months if possible. The BOJ expects inflation to settle around 5 percent by year-end, but that's little comfort if your paycheck doesn't stretch.