(Trinidad Express) Higher international prices of agricultural commodities are starting to affect local food prices.
Wheat prices on the world market, which have steadily increased over the past year because of bad weather in wheat-producing countries like Russia, pushed domestic prices of breads and cereals up in July, the Central Bank says in its latest repo rate report.
Breads and cereals on the local market climbed 3.7 per cent on a 12-month basis up to July this year, from 2.3 per cent in June.
There were also faster increases in the prices of fruits, which increased almost 25 per cent over the past year, and fish, which rose ten per cent in July, compared to the same time a year ago.
In contrast, the prices of meats slowed in July to 8.5 per cent, compared to ten per cent in June, the Central Bank report released last Friday stated.
Vegetable prices also continued to decline from July 2010 to July this year by 9.5 per cent, compared to 12.1 per cent in the 12 months up to June this year.
The price adjustments caused the rate of inflation in Trinidad and Tobago to increase to 1.4 per cent in July, compared to 0.8 per cent in June, the Central Bank said.
Credit conditions have also continued to improve in the country, the Central Bank data showed.
Loans for new cars increased by 11 per cent while consumers spent 9.6 per cent more on credit card purchases in July.
Private sector credit granted by the country’s banks and financial institutions increased by 1.5 per cent in June, compared to 0.9 per cent in May.
But the decline in business lending continued to decrease, albeit at a slower pace, the Central Bank said.
Credit to business by the consolidated financial system declined in June 2011 by 1.5 per cent, slower than 5.7 per cent recorded in January, the Central Bank stated.
