By DENISE MAYCOCK
Tribune Freeport Reporter
dmaycock@tribunemedia.net
FOREIGN Affairs Minister Fred Mitchell said the Bahamas’ cost of living crisis is being driven largely by external forces, particularly inflation imported from the United States, warning that no government can fully shield the country from those pressures.
“The Commonwealth of The Bahamas is entirely dependent on the United States of America,” he said. “Whatever inflation there is in the US, it comes straight here.”
Mr Mitchell said the country’s heavy reliance on imported food and consumer goods leaves it especially vulnerable to rising prices abroad.
While acknowledging that the government cannot control global inflation, the minister said measures have been implemented to help ease the burden on Bahamians, including adjustments to Value Added Tax (VAT), customs duties, social services transfer payments and increases to the minimum wage.
“To the extent that we can, we’ve tried to give people relief,” he said. “But there are certain things you simply can’t control.”
Mr Mitchell said the housing market has also come under significant strain, pointing to the expansion of Airbnb, strong tourism demand and the dismantling of informal settlements as factors that have tightened housing supply.
“These were necessary actions,” he said, “but they’ve put pressure on the housing market.”
He said addressing these interconnected challenges requires a government that is “steady at the wheel” and capable of balancing economic growth with social stability.
Mr Mitchell also defended the PLP’s record against accusations of a lack of transparency, describing much of the public discourse as driven by “gotcha moments” and “melodramatic opposition politics” rather than substantive policy proposals.
“Everybody can’t be a crook,” he said. “We all went to the same schools, the same churches. The math just doesn’t add up.”
He argued that many of the country’s challenges — including food prices and migration — are structural and long-term, requiring sustained policy implementation rather than abrupt changes in direction. On that basis, he said the PLP should be granted a second term to complete projects and reforms already underway.
“The work is complicated,” he said. “But the country has progressed, and it will continue to progress with investment in our people and our children.”
Mr Mitchell also emphasised the importance of social safety nets, saying that in his Fox Hill constituency no resident should go hungry, noting that assistance remains available through constituency offices and social services.
As inflation and affordability continue to dominate public concern, he said the government’s focus remains on maintaining stability, expanding opportunity and completing projects already in progress.
“We’re asking the Bahamian people for the opportunity to finish the work,” he said.
Comments
TalRussell 1 day, 16 hours ago
Venezuela's uncharted land, sea waters and airspace. I can say with confidence, the Bahamas honourable premiership, summoned senior members of his cabinet, RBPF and RBDF. Long chat with the Bahamas' Ambassador to Venezuela, Her Excellency Melanie Hilton.
birdiestrachan 1 day, 16 hours ago
No gainsaying here Mr Mitchell is 100percent correct. And most people know these are the facts. That can not be ignored.
Sickened 1 day ago
This is totally opposite of what you and Mitchell said when the prices of goods went up during and after the pandemic and the shipping costs went through the roof. You both blamed the white man then for jacking up the prices at the food stores. You two, and your beloved party, are so sad and pathetic.
rosiepi 1 day, 15 hours ago
How about the facts? Since Mr Mitchell’s explanation for his government failure to contribute to to progress in the Bahamas for its citizens (the fortunes of it’s politicians are doing much better tho!) Nor can anyone, least of all this person point to any meaningful investment in this nation’s people nor its children.
The Bahamas’ inflation rate compared to that in the US. The past five years as per tradingeconomics.com ‘20 US-1.4%/BS 04% ‘21 “. 7%BS 2.91% ‘22. “. 6.5%/BS 5.61% ‘23. “. 3.4%/BS 3.06% ‘24. “. 2.9%/BS 0.41% ‘25. “. 2.7%/BS 0.45%
hrysippus 22 hours, 36 minutes ago
Well, rosiepit, the figures that you cite just do not seem correct to my cursory reading. Perhaps they are based on data suppled by Bahamas government entities which is just about as good and trustworthy as it should be....
birdiestrachan 1 day, 15 hours ago
Futher when one of the Huberts I believe it was the pspa gave the 11 familes the shipping port signed into that contract if their profits go below a certain amount they can increase their shipping cost .no regard for the poor from the fnm government papa and them people rich already.
birdiestrachan 1 day, 15 hours ago
USA cost and Bahamas cost it is easy to realize the Bahamas cost includes shipping now that is a easy one.
ThisIsOurs 1 day, 13 hours ago
"Fred Mitchell said the Bahamas’ cost of living crisis is being driven largely by external forces.."
The Davis administration has exponentially increased taxes and fees everywhere. Property taxes, fishing fees and taxes and these dubious "Customs VAT charges" for that no bid JDL airport contract that impacts all airfreight driving up shipping costs 50%
tetelestai 1 day, 5 hours ago
Property taxes - due to the tax thresholds, property tax does not affect most Bahamians. Fishing fees - a luxury tax, mostly on the wealthy. A housekeeper at Atlantis or a government worker at the Ministry of Social Services, for example (combined, the personification of our two largest employers) are unaffected by these fees.
Dawes 23 hours, 49 minutes ago
But the stores they may shop at are (RP) and the fish they may buy are. As well as the owners of other stores, who all then put up their good prices to cover the increase in tax they are paying
ThisIsOurs 3 hours, 25 minutes ago
Do most Bahamians pay rent? Then property taxes affect them.
Your analysis is likely from the same source that doesnt account for the underlying relationships in the economy... hence: "oops"
ohdrap4 1 day ago
Correct. Not to mention the exorbitant customs duties of many products of 45-65%. Even if I try to beat inflation by cooking my own food, pots and pans attract 45©. Sad.
birdiestrachan 1 day, 12 hours ago
Most consumer goods come by sea. The FNM government.increased VAT 60percent and thump their chest about bread basket items like flour.and cooking oil etc which really benefited hotels bakeries and fast food. Facts are facts and no lies can change facts.
ohdrap4 21 hours, 7 minutes ago
The bakeries and fast food do not pay VAT. They deduct whatever they pay to Customs back from their vat return.
They only collect for the govt.
I on the other hand, am out of pocket. It is we sheep who pay vat
moncurcool 21 hours, 9 minutes ago
Why is the Tribune printing this bullsh*t from Mitchell? This is clear evidence of a bone headed MP out of touch and who needs to go right away.
truetruebahamian 20 hours, 36 minutes ago
This we knew all along, except for some ignorant trumpies.
joeblow 18 hours, 57 minutes ago
... except US inflation is down significantly compared to the the same time last year and fuel prices are down at the pumps in Nassau as well. That can only mean that our governments policies are keeping inflation high.
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