JAMAICA’S inflation is heading above the Bank of Jamaica’s (BOJ) target range just as the country begins rebuilding after Hurricane Melissa, leaving policymakers trying to contain rising prices without slowing an economy still recovering from the storm.

Conflict in the Middle East is driving up global oil prices and shipping costs, increasing the price of imported fuel and other goods flowing into Jamaica, while reconstruction spending linked to Hurricane Melissa is expected to push more money through the domestic economy as rebuilding accelerates.

BOJ’s latest policy discussion summary showed businesses now expect inflation over the next 12 months to average 7.1 per cent, up from 6.5 per cent previously and above the central bank’s 4 to 6 per cent target range.