NASSAU, BAHAMAS — The Ministry of Finance’s top official yesterday expressed doubt as to whether the local construction industry has been adversely impacted by global inflation, arguing that the Davis administration had reduced the duty on a wide range of construction-related materials to zero in the most recent budget exercise.
Wilson, while speaking on the sidelines of the launch of the government’s new eProcurement and supplies registry system, was asked if there had been negative effects due to the current economic conditions.
“I don’t know if that’s true,” he said. “I don’t think the numbers reflect if that’s true. We see inflation in fuel costs which are translated into energy costs. We see inflation in food costs but we have not seen a dramatic increase in inflation on construction materials.
“That’s a statement made without the facts to support it. During the budget, we reduced a whole range of building materials to duty-free. Immediately there was a decrease in the price levels. I don’t think there is any evidence to show an increase in the price levels of the building materials index.”
He added: “During the budget, we reduced the duty from 35 and 20 percent to zero duty on a whole range of building materials. That has to work itself through the pricing system.”
As global inflation continues to drive up the price of goods, Wilson said he has faith in the ensures the government has out in place to relieve the burden on Bahamians.
“We see inflation elevated in comparison to the past ten years because of global factors but we don’t see it at a high level. We don’t see inflation rising above five percent on an annual basis,” said Wilson.
The Bahamas National Statistical Institute (BNSI) revealed last week that the Consumer Price Index rose seven percent in June from the same period last year. The index measures changes in the price of goods over a period of time.
The BNSI noted that the monthly inflation rate in The Bahamas, which represents the overall change in prices, saw an increase of 1.5 percent for July 2022 when compared to June 2022.
