The Bank of Jamaica kept its policy rate at 5.50 per cent in August, with July inflation at 7.5 per cent and global energy prices still volatile.

Jamaica spent US$2.24 billion on imported raw materials in 2025, more than it earned from all merchandise exports, as the trade deficit reached US$5.87 billion.

Energy Minister Daryl Vaz says talks with JPS on a new all-island electricity licence are ongoing, with other parties also interested ahead of the July 2027 expiry.

Rents consuming nearly 58% of average take-home pay, a 150,000-unit housing deficit and a Bank of Jamaica rate that refuses to move — our July 2026 review maps the forces squeezing Jamaica’s renters and first-time buyers and asks what relief, if any, is on the horizon.

The House of Representatives has approved an increase in the national minimum wage from $16,000 to $17,000 for a 40-hour week, with the hourly rate rising to $425 from 1 July.

Annual inflation rose to 5.4 per cent in May from 4.3 per cent in April, pushed up by food, restaurant meals, electricity and fuel, nearing the top of the central bank’s target.

US inflation hit 4.2 per cent in May, its fastest pace in three years, raising the risk of higher import, fuel and borrowing costs for Jamaican households and businesses.

Prime Minister Andrew Holness says the Government will push for lower power costs in new JPS licence talks and expand renewables, noting March 2026 bills neared $42 per kilowatt hour.

The National Water Commission has completed the $123-million Hopeton to Waltham pipeline, replacing an ageing asbestos main and improving supply to about 1,300 Mandeville households.

A rate cut to 5.50%, inflation falling below the Bank of Jamaica’s own target floor, and a J$50 billion NHT capital plan — Jamaica’s housing market began 2026 with rare optimism. Then oil prices climbed. This quarter’s review examines what changed and what it means.