Dear Editor,
Reference is made to “Big Market inflation” (Jan 14). It is not known how inflation is measured in Guyana – what basket of goods are used and where or how — but I am certain the standard is the same as in USA and other countries. The question is what goods and services are included in the Guyanese family basket to calculate the average cost for month—on-month measurements. Is the average cost taken at one market location or from how many households and where?
The basket is expected to change because people’s habit change over time especially with a rise in income. Guya-nese disposable income has increased over the last two years. So their taste or consumer habits would have changed from few years ago; basket of goods would have changed. It would be helpful to those who study Guyanese economics, if Bureau of Statistics and or the Central Bank could advise on how inflation was/is calculated (measured) and the prices used for the items in the basket of goods and services. In the US, it is law that independent government agencies measure several types of inflation – Wholesale Price Index or WPI, Consumer Price Index or CPI, Core Inflation (CPI minus the cost of energy and rent or mortgage), among others. Guyana has some of the highest prices for foods globally.
Foods in Guyana in general are much more expensive than in America while Guyanese wages are about a sixth of the US. In general, prices in USA are much lower than in other developed economies with the USA having among the highest disposable income. Prices in India are much lower than in USA. There is no doubt that in Guyana, standard of living improved in ’22 over ’21 and ’20. But inflation has seriously impacted on consumption, especially the lifestyle of those on fixed income (pensioners) and the poor. It is critical that inflation be accurately measured. Thanks for that list of items and their prices that makes it possible to measure increase in prices.
Sincerely,
Vishnu Bisram
