Jamaica’s economic landscape closed 2025 with persistent inflationary pressures as official data revealed a concerning uptick in consumer prices. The Statistical Institute of Jamaica (STATIN) documented a 1.3 percent monthly increase in the All Jamaica Consumer Price Index (CPI) for December 2025, pushing the annual inflation rate to 4.5 percent.
The primary driver behind this inflationary surge emerged from the critical ‘food and non-alcoholic beverages’ category, which experienced a substantial 7.1 percent annual increase. Within this sector, produce prices demonstrated particularly sharp elevations, with the ‘vegetables, tubers, plantains, cooking bananas and pulses’ category soaring by 8.4 percent and the ‘fruits and nuts’ class rising by 5.6 percent. STATIN’s analysis directly attributed these agricultural price hikes to the lingering aftermath of Hurricane Melissa, which continued to disrupt local food supplies and distribution networks.
Parallel to the food inflation, housing costs presented another significant challenge for Jamaican consumers. The ‘housing, water, electricity, gas and other fuels’ division recorded a 2.6 percent monthly increase, contributing to a 3.5 percent annual rise. This escalation stemmed predominantly from elevated electricity rates and increased rental costs, compounded by a 3.7 percent increase in water supply and sewage rates.
The restaurant and accommodation services sector further exacerbated the inflationary trend with a 3.9 percent annual increase, reflecting the broader impact of rising operational costs across the service industry. Notably, every subcategory within the food and beverage division recorded price increases throughout the measurement period, indicating widespread inflationary pressure rather than isolated incidents.
Seafood prices emerged as another area of concern, with the ‘fish and other seafood’ category matching the 8.4 percent increase seen in vegetable prices. This surge was primarily driven by higher costs for staple protein sources including salted fish, sardines, mackerel, and sliced fish, affecting both household budgets and commercial food services.
The cumulative effect of these increases positions Jamaica’s economy at a critical juncture, with the December 2024 to December 2025 inflation period consistently maintaining the 4.5 percent rate, suggesting sustained rather than transient price pressures across multiple essential commodity sectors.