The prices of two staple food items – rice and flour – are likely to go up if the slide of the Jamaican dollar continues, according to the major suppliers.
Derrick Nembhard, Managing Director of Jamaica Flour Mills and Jamaica Rice Mills, has told RJR News that the companies are closely monitoring the movement in the exchange rate as there will be implications for the cost of their products.
The US dollar, which was trading at $J126.38 at the end of last month, is now being sold for an average $132.52.
“It’s going to affecting our costing but for now we’re just watching until we make a decision once we see some stability in the market, whether it moves up, stays the same, or comes back down,” he said.
“Foreign exchange will always have an impact; all our expenses effectively are in foreign exchange and all our sales are in predominantly are in local currency, so as we see a depreciation, then yes, it’s going to affect our costing,” he stressed.
Last week the Jamaica Manufacturers and Exporters Association expressed concern that the depreciation will have negative implications for its members.
The wider concern is whether this latest slide will result in increased costs for goods and services.
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