Economic Report for October 12, 2026
Local Market Update
There are signs that inflationary pressures may begin to ease as Petrojam Ltd expects fuel prices and supplies to remain relatively stable through the end of 2026. Increased crude exports from the Middle East have helped reduce volatility in global oil markets, with Brent crude retreating from its summer highs. While earlier oil-price increases are still working through the economy, greater stability could help moderate future increases in transportation and energy costs.
Meanwhile, the Jamaica Stock Exchange (JSE) continues its strongest recovery since the pandemic. The Main Market Index has gained more than 20 per cent year-to-date, driven largely by financial and infrastructure stocks, alongside stronger trading activity and improved investor sentiment. Despite the rally, the market remains below its pre-pandemic peak.
Global Market Update
The global economy remains under pressure from elevated energy, commodity, and food prices driven by ongoing geopolitical conflicts and supply-chain disruptions. Oil prices exceeded US$100 per barrel during September, while higher natural gas and agricultural prices have contributed to persistent inflation worldwide.
In response, major central banks have maintained tight monetary policies, resulting in higher borrowing costs and stricter financial conditions globally. Despite these challenges, economic growth has remained resilient, supported by consumer spending and continued investment in artificial intelligence and technology infrastructure.
Investor Implications
For Jamaicans, the prospect of more stable fuel prices is encouraging, as it may help slow inflation and ease some pressure on household budgets and business operating costs. However, global risks remain elevated, particularly around energy markets and geopolitical tensions.
The strong performance of the Jamaica Stock Exchange highlights the value of remaining invested through market cycles. As inflation is expected to continue to ride high, fixed income assets will lose value when compared to the rising price of commodities due to inflation. For both MML customers and the wider investing public
“For both MML customers and the wider investing public, the lesson is the same: hold a mix. Growth assets can keep pace with rising prices, and fixed-income assets lock in a return you know in advance.”
Fuel may steady. Your money still has to outrun 7.9% inflation.
Jamaica’s annual inflation was 7.9% in August (STATIN). Over the 12 months to October 7, 2026, the MML M7 Real Estate Fund grew 18.7%, more than double that. For investors who also want a known return, MML arranges J$ secured fixed rate notes backed by first legal mortgages on real estate. Book a free 20-minute portfolio check and we’ll show you how much of each fits your goals.
Looking to invest? Ask for the current secured notes summary.
Inflation: STATIN, All-Jamaica point-to-point, August 2026. Fund return is growth in NAV per unit to October 7, 2026. Past performance does not guarantee future results. Fund values can fall as well as rise. Secured notes are offered to accredited investors only, under FSC exempt distribution, and are subject to the offer terms.
Past performance does not guarantee future results. Fund values can fall as well as rise. Returns are growth in NAV per unit, and the MoneyBuilder return is in US dollars. Secured notes are subject to the terms, security and eligibility in the offer document. [Licence line and risk disclosure per Compliance.]