Sunday, December 17, 2017

February inflation falls to low 5.9%

Headline inflation in Trinidad and Tobago for the month of February fell to a low of 5.9 per cent down from a high of 7.3 per cent in January.

The Central Bank stated statistics from the Central Statistical Office showed that on a monthly basis, headline inflation slowed to 0.3 per cent following an increase of 2.6 per cent in January 2013.

"A deceleration in food prices contributed to the decline in headline inflation during February as food price inflation eased to 10.6 per cent from 13.8 per cent in January 2013.

"Core inflation, which excludes movements in food prices, also slipped further to 2.1 per cent in February 2013 from 2.2 per cent in January and the latest available statistics show that credit to the private sector remained subdued in early 2013," the bank stated in its latest repo rate statement.

It added stability of core inflation supports the view that the underlying price pressures remain subdued at the present. And while the domestic economy is expected to improve over the course of 2013, available indicators suggest that private sector demand for credit was relatively slow in the early months of the year.

"In the circumstances, the bank views the present monetary policy stance as appropriate and has decided to maintain the repo rate at 2.75 per cent. The bank will continue to keep economic and monetary conditions under close review in the coming months."