NASSAU, BAHAMAS — The latest Central Bank data has revealed that domestic consumer price inflation continues to rise, having increased to 4.4 percent in the twelve months to June.
The regulator in its monthly economic and financial developments report noted that reflective of the pass-through effects of the increase in global oil prices and supply chain shortages, domestic consumer price inflation—as measured by the All Bahamas Retail Price Index—rose to 4.4 percent during the twelve months to June, from just 0.9 percent in the same period of 2021.
“Leading this outturn, average costs for transport rose by 14.2 percent; for communication, by 12.2 percent, for education, by 2.3 percent , and for recreation & culture by 1.3 percent, after posting respective reductions in the prior year,” the Central Bank noted.
This latest data comes on the heels of a recent plea by Prime Minister Philip Davis who urged Bahamians to be vigilant and frugal in the months ahead as forecasters predict further instability due to global inflation.
Davis said: There was a meeting of Central Bank governors very recently and they’re predicting that it’s going to get a bit worse before it gets better even though there are signs that are so inherently contradictory.”
“When you look at all of what I call the economic indices that speak to whether inflation is going to be stabilized and or it’s going to be a runaway horse as it has been and from their prognosis, it seems that we are in for yet a rough ride for another few months.”
Last month, the International Monetary Fund (IMF) projected that inflation this year will hit 9.5 percent in emerging markets and developing economies like The Bahamas.
The IMF’s World Economic Report — titled “Gloomy and More Uncertain” cited further negative spillovers from the war in Ukraine; higher-than-expected inflation worldwide and a worse-than-anticipated slowdown in China as reasons for its revision to its global economic growth projections.
The IMF also reduced its growth expectation for 2022 to 3.2 percent which is about half a percentage point lower than what it had previously predicted.
