Financially, this year 2009 has been a very challenging year. We all had to learn to ‘tighten we belts’, ‘Stretch what ever we had’ and sometimes ‘tun we han mek fashin’. A lot of people lost their jobs. Those that kept theirs dared not ask for pay increases. Those that dared to ask were reminded just how fortunate they were to still have a job and then their requests were ignored.

The fact is, for most of us, our income at the beginning of the year January 01, 2009 and our income today December 31, 2009 is the same. However cost of living has increased making life difficult for many hard working Jamaicans. We tend to go along day by day without realizing the magnitude of what exactly is taking place. The government keeps announcing some low inflation rates, but I wonder where they get there figures from. I took the time to research some prices as they were on January 01, 2009 and compare them with the prices of the same items today December 31, 2009. Now I understand why my savings are being depleted and am extremely worried as to what is going to happen from here on.

The new tax package becomes effective tomorrow, January 01, 2010, which means the increases on basic necessities, will continue. Unfortunately once certain services or products increase they cause a domino effective on other items. Example, gasoline is essential for transportation, so with the increase of gasoline, any thing that has to be transported is automatically affected. The rate of exchange to other major currencies, (I have to share this with you) I remember once buying callaloo by the road side. It was very good so the following day I stopped to buy some more. To my surprise the seller told me a higher price than the previous day. When I reminded him that ‘is me same one him sell yesterday fi less’ I was told, “Look lady, the dolla devalue”. I could not argue with that, so I paid the man and left. Besides, I was too busy laughing.

So here are the figures for the rate of exchange and for petrol, for then and now. These are just two of the things that can affect the price of everything else that we have to pay for. The Bankers Selling Rate (BSR) is taken from Bank of Jamaica (BOJ). The petrol prices are taken from Petrojam Ltd. These prices are not the final prices to the consumers as they are further marked up by the wholesalers.

As I said before 2009 was challenging. Many Jamaicans relied heavily on money from abroad however with the global recession there has been a drastic reduction in remittances. These remittances from friends and family or personal saving has been the ‘cushion’ for many to combat the real inflation, the kind of percentage increase as we see in the table. With the Tax increases effective tomorrow Jan 01, 2010, the pending job cuts promised by the Prime Minister, Bruce Golding, and the lack of salary reviews for the next two to three years the gap in the percentage increase will only get wider. There is a saying in Jamaica, ‘anywhere it mawga it pop’, my only fear is the possible consequences after the ‘popping’. Till then enjoy the rest of 2009.

Nuff Love