Bahamas to implement temporary price control measures on key food staples
The Bahamas will implement temporary price control measures today on key food staples.
Eggs, bread and bananas are among the 38 items that will be placed under price control measures as the Caribbean country aims to halt a slide in consumer purchasing power amid global price increases. In addition to the price control measures, the minimum wage will increase, from $210 a week to $260 a week. Price controls will be in effect for six months before being evaluated.
Price increases will be limited to 15% for wholesalers and 25% for retailers during this six-month period. Local retailers are concerned that the government’s decision will cut into profit margins and that many will not last the six-month period.
Despite concerns of a global recession, the Bahamian economy is expected to see an 8 percent growth in GDP for this year. Much of this growth has been supported by a resurgence in tourism which will continue to grow in the medium term as travel restrictions are lifted. International Monetary Fund projections indicate that inflation will surge to 7.2 percent this year and then decline to about 3 percent in 2023. The food industry itself will feel the shock of this program and will likely call for revisions to the price caps.
