The increase in prices normally associated with the slide in value of the Jamaican dollar, is being moderated by the level of competition among goods and service providers locally, says Curtis Martin, managing director of JN Bank.

Martin explained that increased flexibility in the Jamaican economy means that local substitutes can often take the place of imported goods and services, therefore, limiting the impact of price increases resulting from local currency depreciation.

“Goods that have a large level of local content are not likely to see any major movement in prices,” he stated, adding that, “Someone in Clarendon growing yam and using water from the river would not be under any immediate pressure to raise prices.”

http://www.loopjamaica.com/content/sliding-dollar-has-limited-impact-prices-says-banker