During an update on food prices, held at his ministry's New Kingston offices yesterday, Samuda said, "It is not likely that the reductions that we anticipated would take place at this time."

The commerce minister's comments follow a statement last month in which he said he was anticipating that the reduction of the costs of raw materials on the world market would result in consumer prices declining by eight to 10 per cent in time for Christmas.

Encouraged by discussions

Despite the setback, Samuda said he was encouraged by discussions with the distributors that should the exchange rate become stable over the next few weeks, there would be reductions.

Samuda attributed the hike in food prices to movements of the US dollar, which has since jumped from J$72 in October to J$79 yesterday, combined with an increase in operating costs for retailers and distributors.

"The levels are yet to be identified, but I have been assured that with the dollar being stable, prices would not only stabilise, but will decline in certain specific areas," he said.

Samuda said his ministry was satisfied with the measures implemented by the Bank of Jamaica, which has increased the interest rate to curtail the slide of the dollar.

Meetings with stakeholders

Before yesterday's press briefing, Samuda met with stakeholders from the distributive trade to discuss stabilising prices on food commodities used by Jamaica's most vulnerable.

A similar meeting is to be held with retailers to discuss stabilising prices for 10 basic food items:

Chicken

Cooking oil

Cornmeal

Brown sugar

Hard-dough bread

Powdered milk

Rice

Counter flour

Canned mackerel

Canned sardines

Should the stakeholders agree to stabilise the prices of these products, Samuda sought to assure that the changes would take place with immediate effect. He also said that findings from retailers will be published to indicate to consumers where the best prices exist.