The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas' inflation rate suffered its largest month-over-month decline for three years in December 2023 amid continued signs that price and cost of living pressures are slowly easing.

The Bahamas National Statistical Institute (BNSI), unveiling its latest consumer price index data, also revealed that the inflation rate for the trailing 12 months dropped below 2 percent for the first time since February and March 2021.

"The monthly inflation rate in The Bahamas, which represents the overall change in prices for 2023, decreased by 0.5 percent when compared to November 2023. This decrease is reflected in the overall price of items purchased by the average consumer during this period. This December decrease followed a 0.2 percent decrease between the months of October 2023 and November 2023," the Institute said.

The November and December 2023 month-over-month inflation reductions are the first two consecutive months in which the average general level of prices has fallen since the same period in 2022. However, while price increases have started to taper off, that may be of little comfort to many Bahamian still feeling the impact of the cost of living crisis and yet to see any appreciable change in household expenses.

"Meanwhile, on a month-to-month basis, the major decreases by group included transportation, recreation along with food and non-alcoholic beverages, which saw decreases of 3.8 percent, 0.1 percent and 0.1 percent respectively," the Institute said.

"However, the clothing and footwear group showed an increase of 0.1 percent while there was little to no change for the remaining major groups, respectively, for the month of December 2023 when compared to November 2023."

As for the trailing 12 months, or year-over-year, inflation rate, the Institute added: "Furthermore, for December 2023, the consumer price index (CPI) rose 2 percent over the same period last year in 2022. The major categories that contributed to this increase included Health at 6.4 percent, along with furniture and household equipment and furnishings at 5.9 percent, and electricity, gas and other fuels at 4.3 percent.

"For the month of December 2023, diesel prices saw an increase of 1.2 percent, while gasoline decreased by 9.2 percent when compared to November 2023. Meanwhile, both gasoline and diesel prices continue to decline as they saw decreases of 4.6 percent and 6.9 percent, respectively, when compared to this time last year."