Barbados

The inflation rate in Barbados has been steadily rising since October 2010, reaching 11.2% y-o-y in October 2011, higher than the 12-month y-o-y average of 8.1%, on the back of higher fuel prices (fuel inflation came in at 22.6% y-o-y in October). As a result, unless inflationary pressures lose steam in November and December, we see some upside risks to our 8.0% year-end inflation estimate for 2011. Nevertheless, we are happy to maintain our 6.0% year-end inflation forecast for 2012 on the back of our commodities team forecast of a moderation of Brent Crude prices from US$109.5/bbl in 2011 to US$102.0/bbl in 2012.

To read the full article, please choose one of the following options: