Business leaders are expecting the country’s inflation rate to reach 7-percent this calendar year.
That’s according to the latest Inflation Expectations Survey published by the Statistical Institute of Jamaica, STATIN.
But while they’re expecting a jump in inflation, they’re anticipating a slowdown in the depreciation of the Jamaican dollar over the next 12-months.
The survey captures the perception of CEOs, Managing Directors and Financial Controllers.
It was conducted in August of this year, and had 319 respondents.
The monthly survey sets out to gauge the perception of business leaders and identify those variables they think will have an impact on inflation in the near-term.
According to the respondents, they’re satisfied with the way the Government is moving to control inflation.
The inflation rate between August last year and August this year was 3.5-percent.
But business leaders are expecting inflation to jump to 7-percent by September next year.
They’ve also indicated that for the next three quarters, they’re expecting the exchange rate to continue depreciating, albeit at a slower pace.
The survey also asked business leaders what they think will have the biggest impact on their operating and production costs over the next 12-months
They identified the high cost of utilities and raw materials alongside higher fuel and transport costs.
The respondents are not expecting to have to pay more for wages and salaries to their employees over the next year.
In fact, they expect remuneration to have the least impact on their operating expenses over the next year.