The Inflation Target
Bank of Jamaica’s monetary policy objective is to achieve an inflation target of 4.0 per cent to 6.0 per cent per annum over the medium-term. This inflation rate, measured as the annual change in the Consumer Price Index that is published by the Statistical Institute of Jamaica, will facilitate sustained growth and development in Jamaica.
Why is the Inflation Target 4.0% to 6.0%?
The inflation target of 4%-6% is considered optimal to support Jamaica’s long-run growth and is also consistent with the programmed reduction in public debt. Low, stable and predictable inflation will facilitate sustainable productivity, economic growth and a reduction in the public debt burden. The width of the target range accounts for the historical volatility of inflation, given the economy’s susceptibility to weather-related exchange rate, terms of trade and others shocks.