NASSAU, BAHAMAS — As consumer prices continue to rise, one senior finance executive is encouraging Bahamians to look at ways to make their dollar stretch further, warning that consumers should brace themselves should high inflation persist.
Gowon Bowe, chief executive officer of the Fidelity Group of Companies, told Eyewitness News: “We need to pay better attention to the things happening around us so we actually start to prepare ourselves a bit better.
We import the vast majority of what we consume and have to realize that we import inflation.
– Gowon Bowe, Fidelity CEO
“The inflationary pressures in the US, the shipping and logistical issues that have led to increased shipping costs, have been conversational topics for the better part of 12 to 18 months.
“Retailers have indicated that they have tried to advance purchase in order to keep prices at a minimum. We import the vast majority of what we consume and have to realize that we import inflation.”
Bowe added: “We have to look at how we make a dollar stretch further. That requires greater planning and discipline in our purchasing practices.
“We have to look at the items we traditionally purchase, identify the cheapest sources and look at how we can pool resources to purchase them.
“The best way to manage inflation is by looking at our ability to achieve economies of scale; reduce the number of times we purchase, so we are maximizing our spend; and plan ahead to ensure we are focusing on those items which are critical needs and wants and not luxuries, at least until prices return to what we consider to be normal.”
Still, Bowe warned there is chance that consumers could be in a high inflationary environment for a while.
“We also have to consider whether we are likely to see deflation, meaning that prices go down, or are we likely to experience slow inflation, with prices going up but no significant retrenchment, and that is a real risk we are going to also have to prepare ourselves for,” said Bowe.
The Consumer Protection Commission (CPC) last week assured the public that it will continue to monitor the global change of consumables and ensure that local wholesalers and suppliers abide by the regulations laid out in the Consumer Protection and Price Control Act.
The commission said in a statement that it has taken note of the rise in inflation in the United States — The Bahamas’ largest trading partner — and warnings from local merchants that the price of everyday goods is expected to also rise as a result.
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