NASSAU, BAHAMAS — The Free National Movement (FNM) says high costs for Bahamian families are being driven not only by external inflation, but by domestic policies under the Progressive Liberal Party (PLP).
FNM Shadow Finance Minister and East Grand Bahama MP J. Kwasi Thompson in a statement argued that the government is using global pressures as a shield while ignoring the direct impact of its own decisions on the cost of living.
“Bahamians understand that inflation in the United States affects prices here at home. What they should not accept is a government using global pressures as a shield while ignoring the direct impact of its own decisions on the cost of living,” Thompson said.
“While inflation rates may rise or fall year to year, the reality for Bahamian families is that prices remain permanently higher. Once costs increase, they do not come back down. Government policy determines whether those higher prices are eased or compounded. Over the past four years, PLP decisions have consistently added pressure, making everyday life more expensive for Bahamian households. External forces matter, but domestic choices matter just as much. This government controls policy, taxes, fees, energy policy, housing rules, and the cost of doing business. Instead of using those tools to reduce pressure, the PLP has made decisions that directly increase costs across the economy—driving up food prices, electricity bills, rents, and business expenses—while families fall further behind and small businesses struggle to survive.”
Thompson said the PLP has taken specific actions that have raised costs for Bahamians. “Fees on small businesses, particularly in the marine and boating sector, have increased significantly, raising operating costs that are inevitably passed on to consumers. VAT has been expanded on breadbasket items that families rely on every week, increasing grocery bills at a time when household budgets are already stretched. Despite repeated promises, there has been no meaningful progress on improving the ease of doing business. Red tape remains entrenched, approvals are slow and unpredictable, and compliance costs continue to rise with no relief in sight. The government points to VAT adjustments, duty changes, and social assistance programmes as evidence of relief. If those measures were effective, Bahamians would feel it in their wallets. Instead, the cost of living remains high, and more households are forced to make painful trade-offs just to get by. Relief that exists only on paper does not help at the grocery store, when paying electricity bills, or covering rent.”
He also highlighted the broader economic impact, saying, “Even on energy, the government’s own plan will push electricity bills higher until at least 2027. Bahamians are being asked to absorb higher costs now with only promises of future relief—promises that do not help families facing rising bills today. After four years in office, the PLP is asking for more time. Bahamians cannot afford it—not at the grocery store, not on their light bills, and not in their rent.”
The FNM’s approach, Thompson said, is clear: “Affordability starts with disciplined governance, lower and more predictable costs, policies that genuinely support local business and home ownership, and decisions that put the needs of Bahamian families first. Restoring affordability is not about slogans or excuses. It is about making better choices and delivering real relief where it matters most.”
This statement from the Opposition comes after a statement released by Foreign Affairs Minister Fred Mitchell on Monday. Mitchell noted that the country’s cost-of-living pressures are largely driven by external forces, particularly inflation imported from the United States. “The Commonwealth of The Bahamas is entirely dependent on the United States of America. Whatever inflation there is in the US, it comes straight here,” Mitchell said. He noted that 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, Mitchell 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. But there are certain things you simply can’t control,” he said. He also addressed housing pressures, pointing to Airbnb expansion, strong tourism demand, and the dismantling of informal settlements as factors tightening supply. “The work is complicated. But the country has progressed, and it will continue to progress with investment in our people and our children,” Mitchell said.
