Further, as these economies do not see the inflation risk as serious and imminent, they are taking expansionary monetary and fiscal action. In the Bank’s view, for Trinidad and Tobago, with inflation already at 14.8 per cent, inflation reduction should be priority number one.
In the Overview, we make the point that a quick return to single-digit inflation is critical for reversing inflation expectations and bringing inflation down to 6-7 per cent in the medium term. One cannot have sustained growth and improve the quality of life of the population until inflation is brought under control.