The Statistical Institute of Jamaica (Statin) reported that the cost of utilities, gas and housing fell by as much as eight per cent while transport was down 2.8 per cent.

Still, Prime Minister Bruce Golding said headline inflation fell because of actions by the central bank to defend the local currency.

"Inflation would have jumped back if we hadn't taken steps to stop the slide in the Jamaican dollar," said Golding Sunday as he announced the new economic stimulus package

The Bank of Jamaica (BOJ) has been selling hard currency into the system at controlled prices, but it also raised interest rates, and clamped down on the supply of money revolving in the system, by adjusting the amount of cash the banks have to lodge at the central bank, from 23 per cent to 25 per cent.

The effect of latter, however, would not have impacted November inflation, having come into effect December 3.

Declining oil prices

Prices at the pumps have been declining for the past month, as oil falls. Regular gas is selling as low as $52 per litre having reached $80.

In addition, freed of some of the weight of its multibillion-dollar energy bill, electricity bills were priced approximately 19 per cent lower in November, monopoly power distributor Jamaica Public Service Company announced.

Still food and other consumer goods remained expensive, despite a push for retailers and manufacturers to reduce shelf prices.

In November food prices rose 2.3 per cent, as did clothing, health costs, recreation, education, and others, but at a slower rate. Commu-nication, however, was flat.

Calendar year to date, inflation slipped back a notch to 16.8 per cent, while annual inflation is at 19.7 per cent. Fiscal year-to-date inflation, April to November, is at 11 per cent.

Geographically, cost of living fell in the capital and main towns, but rose in the rural areas.

business@gleanerjm.com