The 104th Meeting of the Monetary Council of the Eastern Caribbean Central Bank (ECCB) has ended, with a report from the Bank’s Governor indicating that high consumer prices overshadow positive economic activity.
A meeting Communiqué said the report focussed on Monetary and Credit Conditions in the Eastern Caribbean Currency Union (ECCU) for January to December 2022.
The report noted that although the recovery is proceeding apace in the ECCU, consumer prices have not yet stabilised.
“Elevated consumer inflation continues to cast a shadow over positive economic activity by reducing people’s purchasing power,” it observed.
In addition, the report said that the ECCU fuel costs drove up headline inflation in 2022.
And it noted that the average gasoline price in the region increased from the end of December 2022.
The Governor’s report also stated that food price shocks remain challenging for the ECCU.
However, monetary and credit conditions in the ECCU remain ‘stable and accommodative’, and the EC Dollar – the only legal tender in the ECCU – also remains stable.