The Employers' Consultative Association of Trinidad and Tobago has raised concerns about the upward trend of inflation in Trinidad.

Chairman Martin de Gannes said in a statement:

"The ECA notes with interest and great concern, the Central Bank's latest data which indicate that headline inflation has climbed to 13.5 per cent per annum in August, up from 11.9 per cent in July and food inflation registered an annualised increase of 30.2 per cent in August, up from 25.3 per cent in July."

He said while the ECA acknowledged Government's intention in the budget to target inflation in the medium term at 6 per cent, it was concerned at the existing upward trend in inflation, and more important where it seemed to be heading over the next 12 to 24 months.

"We fully share the Central Bank Governor's continuing concern with the increasing inflation levels, as this upward trend will inevitably have a significant impact not only on the level of wage settlement in the near-term, but more importantly on the country's competitiveness," de Gannes said.

"We urge the Government to heed the wise counsel of the Central Bank Governor and implement immediate action plans which can directly impact the increasing levels of inflation now," he added.

"It is not good enough for the Government to state that in the medium term inflation will be targeted at 6 per cent. Consumers are hurting now and want relief now. The reduction in the inflation rate is urgently needed now, if we are to maintain industrial peace in workplaces over the short term."

De Gannes said the increasing level of Government expenditure planned for the next year and beyond would only worsen the already unacceptable levels of inflation.

"This will inevitably and justifiably lead to demands by employees and their representative for larger wage settlements, and can only cause further disruptions in the productive sectors of the economy as employees fight to maintain their living standards," he said.

He said while balancing a growing economy and keeping inflation at acceptable levels was never an easy task, the current situation did not suggest that "an optimum balance is being met, as the economy is now overheated, there are labour and other shortages, and inflation is already at unacceptable and increasing levels".

(Trinidad Express)