Opposition urges Gov't to take additional measures to ease inflation pressure
Published:Friday | January 5, 2024 | 5:53 PM
The Opposition People's National Party is warning that the fight to keep inflation within the range set by the Bank of Jamaica (BOJ) will be lost if the Government continues to use only monetary policy tools.
In a media release on Friday, Opposition Spokesperson on Industry, Investment and Global Logistics, Anthony Hylton, said inflation is projected to remain elevated due to a range of factors affecting international trade and global logistics.
He argued that given the negative fallout on consumer mortgages, construction, business expansion and investments in the small business sector and on the vulnerable population, any further increase in the policy rate by the BOJ in response to the headwinds on the horizon would be punitive.
“The government has, from the outset, adopted a very restrictive approach in dealing with the COVID-induced price rises with mainly exchange rate and interest rate tools, which it has maintained without a complementary strategy to protect vulnerable consumers and the MSME sector.
"There has been no announced measures, excluding monetary tools, which have been proposed by the administration," Hylton stated.
He stated that the bus fare reduction is likely to have limited effect on inflation and is not a substitute for a holistic approach to fighting what has been a supply-driven increase in prices.
Hylton said the Consumer Affairs Commission and the Fair Trading Commission should be "more active and visible at this time to ensure that price increases are minimised and businesses are more efficient in their operations", so that consumers are not further burdened.
"The Government has the fiscal space to act creatively and decisively in inducing the adoption of technology and innovation in addressing longstanding constraints to our economy of energy, customs reform, supply chain and logistics, among others", he added.
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