There will be a reduction in Jamaica Urban Transit Company (JUTC) fares as of January 1, next year.

This was announced by Finance Minister Dr. Nigel Clarke, in parliament this afternoon.

He said the government is very mindful of the impact of the PPV increase on the cost of living, and the need to support the Bank of Jamaica, in its efforts to return and keep inflation within the 4 to 6 per cent range.

As a result, Dr. clarke said the government will be taking measures to dampen the impact of the announced increases in PPV fares on the overall inflation rate.

Fares for public passenger vehicle operators were announced in October with a second phase to take effect next April.

Dr. Clarke explained the first phase of the JUTC fare reductions for regular users , children and pensioners.

The second reduction in fares will take effect in April next year.

These measures will be in place for up to 24 months, after which fares will be adjusted upwards and returned to existing levels.

The fare cuts will cost government about one billion dollars over the 24 months.