Consumer prices were up six percent in December 2022 over the same period in 2021 with the recreation, food and non-alcoholic beverages, and restaurant and hotels categories up 21 percent, 16 percent and 13 percent, respectively, according to The Bahamas National Statistical Institute (BNSI).
BNSI reported that diesel prices were up 27 percent, and gasoline prices rose seven percent compared to the period in 2021.
However, compared to November 2022, diesel prices dropped 0.5 percent, while gasoline prices declined by 0.4 percent for the month of December 2022.
In its December report, released yesterday, the BNSI said the monthly inflation rate in The Bahamas, which represents the overall change in prices, for December 2022 decreased by 0.4 percent when compared to November 2022.
“This decrease is reflected in the overall price of items purchased by the average consumer during this period,” the BNSI said.
“This December 2022 decrease followed a 0.1 percent decrease between the months of October and November 2022.”
The institute also reported that the transportation category saw a decline in December 2022 of 11 percent when compared to the previous month.
Furniture and household also recorded a decline of 0.6 percent.
However, over this same period, recreation and culture along with miscellaneous goods and services saw increases of three percent each for the month of December.
The inflation rate in The Bahamas rose steadily throughout 2022 with the sharpest rise occurring year over year in July when there was a 7.1 percent increase.
Gasoline and diesel prices were up significantly for much of last year.
In May, diesel prices were up 52.37 percent and gasoline prices were up 30.39 percent.
In June, diesel prices were up 51.11 percent and gas prices were up 36.47 percent.
In November, diesel prices were up 30.96 percent and gas prices were up 12.57 percent.
On Monday, Central Bank Governor John Rolle said that after a year of economic growth in 2022, The Bahamas is expected to see continued healthy economic recovery in 2023, with projected economic growth anywhere in the four to six percent range. He warned, however, that inflation will continue to add pressures.
Rolle said based on established trends, The Bahamas has not seen the worst just yet.
“It’s difficult for us to say whether inflation in The Bahamas has peaked yet,” he said.
“I think what people … observed is that the published inflation rates in The Bahamas have been lower than those in the United States.
“To the extent that we are trailing the United States, we could conceivably see a further rise in the rate of inflation before it starts to taper off.
“That is not to say that we will see a one-to-one rate of inflation at its highest point as there was in the US. That point is very important to note.
“The concern that central banks have in general about prolonged inflation is that if it isn’t dealt with, it will become a distraction and lead to less than optional activity on the part of businesses, in terms of how they are doing their investment planning.
“It could lead to uncontrolled spiraling in terms of pressures in the wage setting and negotiation process in the private sector, so you could have almost a self-sustaining process of inflation that is not even grounded in what’s’ going on, in terms of the supply and the demand for goods and services.
“So getting inflation under control is also about making certain that we somehow soothe expectations and concerns that might lead to additional inflation.”
