Cost of building materials jumps

According to the report, the index of retail prices (viewed as a leading indicator of housing prices) increased to 11.3 percent in June from 6.4 percent in 2004, and 4.1 percent in 2003.

The report also indicated that site preparation and concrete structure, walls and roofing and electrical installation/fixture sub-components of the index have increased to 7.3 percent, 9.1 percent and 46.1 percent respectively in June.

Meanwhile, the report also revealed that the level of reserves in the Interim Revenue Stabilisation Fund stood at a healthy US$3,339.6 billion at the end of October.

On inflation, the bank said a combination of tightening monetary policy, phasing the development budget and wage restraint will keep inflation in check.

In addition, the Central Bank yesterday released the first in a series of quarterly public education pamphlets about its various operations. The first issue deals with the mechanics behind the implementation of monetary policy in Trinidad and Tobago.

Central Bank Governor Ewart Williams said the second issue will deal with inflation and should be released in early 2006.

Williams said there was nothing unusual about a projected doubling of the non-oil domestic deficit to 15 percent of Gross Domestic Product in fiscal 2006 because Government usually spends less than it budgets for in such circumstances.