Monetary policy report: Economic activity picked up while inflation eased

THE Central Bank of Trinidad and Tobago’s monetary report for November 2023, released on Tuesday, indicated an increase in economic activity and an easing of inflationary pressure.

The report added that, according to Central Bank’s estimates, economic activity saw a boost in the second quarter of 2023, on account of non-energy sector activity which improved by 3.8 per cent. This offset the contraction in the energy sector’s activity which declined by 2.3 per cent.

Improvement in economic activity may have also improved labour market conditions, the report said, as unemployment reduced and labour force participation improved.

“Employment gains were noted in the Construction (including electricity and water), wholesale, retail, restaurants and hotels, and community, social and personal service sectors,” the report said.

It added that headline inflation eased to 1.3 per cent in October 2023.

Food and core inflation decelerated in October to 1.9 per cent and 1.2 per cent respectively, on account of slower price movements in several major categories.