The Tribune

By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

PRIME Minister Philip “Brave” Davis said yesterday his administration will do what it can to ensure the impact of a projected 7.3 percent rise in consumer prices is minimised for Bahamians.

Mr Davis was asked yesterday by The Tribune how his administration intended to tackle the expected increase in prices as foreshadowed by the International Monetary Fund in its World Economic Outlook. The IMF said this was due to the ongoing conflict between Ukraine and Russia.

“Well we are looking at measures and initiatives now to do that,” the prime minister said when asked how the government planned to combat the IMF’s prediction.

“We are talking now with shipping companies to lower the cost of freight coming in and to try and get discounts on containers.

“We have already successfully (done) that with one company and we are now talking about how we could assist through the logistical supply chain to reduce costs in those areas.”

 Asked whether he was surprised by the IMF’s prediction, Mr Davis said: “We’re not surprised because a lot of the factors that inform the inflationary numbers we can’t control, we have no control of it.

 “The disruption in the supply chain over the last several months following the pandemic and now with the war in Russia all those things of which we have no actual control over is fuelling the rise in inflation but we are going to do what we can do locally.

 “Things that we can control we will control and try to minimise the impact on our people.”

 Meanwhile, Social Services and Urban Development Minister Obie Wilchcombe said the economic climate coupled with consumer inflation had sparked an increase in the need for assistance from his ministry. However, he said there would be additional measures announced by Mr Davis when he delivers his budget communication in the coming weeks.

 “We’ve decided to approach where we will provide more assistance,” Mr Wilchcombe said. “Expect the prime minister to make some announcements when he makes his budget communication which is about a month away now and at the time he will unveil what our plans are.

 “In the meantime, however, we’re providing additional assistance. We’ve seen the numbers increase significantly and there are more people who are seeking assistance not only for food assistance (but) rental assistance (and) health assistance. We’ve seen the numbers increase.”

 The minister reiterated the government’s plans to increase assistance, adding “because we have to meet the needs of our people.”

 “These are situations that you didn’t plan for but the circumstances are what they are. Our job is to respond to them and we will.”

 The IMF’s 7.3 percent increase of consumer pricing in The Bahamas for 2022 is highest when compared to the projections for 2023 and beyond. In 2023 the IMF projected a 4.5 percent rise and 2.4 percent by 2027.

 It comes at a time when consumers are already contending with high gas prices with all fuel suppliers above $6 per gallon and inflation driving up prices at retail and wholesale grocery stores.