Dear Editor,
I’m writing to share my concerns about the ongoing high inflation in Guyana, which is really squeezing a lot of people, especially those who are already struggling. While the government’s efforts to improve our standard of living are well-meaning, it’s important to consider how they’re also contributing to the inflation we’re all feeling.
Over the past few years, the government has rolled out several big programs—cash transfers, wage increases for public sector workers, and subsidies on essential goods. These are supposed to boost the economy and help people out, but they’re also driving prices up.
The numbers speak for themselves. The Bureau of Statistics says inflation hit 6.4% in 2023, way up from 2.1% just two years earlier. Part of this is due to the extra cash from government programs, which, while helping people climb out of poverty, is also pushing up demand for basic goods. With supply chains being what they are, this demand is driving prices higher. For example, food and non-alcoholic drinks went up by 9.8% last year, which is tough on those who spend most of their income on essentials.
On top of that, the government has been raising public sector wages by an average of 7% each year for the past three years. While this is needed to help workers get by, it’s also making things more expensive. Businesses have to cover higher wage bills, so they pass those costs onto us, the consumers. The Consumer Price Index (CPI) jumped by 7.2% last year alone.
The reliance on subsidies to keep prices low is another issue. It’s created a bit of a false market where prices aren’t really reflecting true costs, and with a fiscal deficit of 3.9% of GDP in 2023, the government can’t keep this up forever. When those subsidies are eventually cut or removed perhaps after the 2025 elections, prices could spike even more, making it even harder for people to manage.
While I appreciate what the government is trying to do to help us through tough times, it’s important to look at the bigger picture. To really tackle inflation, we need a more balanced approach that boosts productivity, improves supply chains, and uses targeted fiscal measures that don’t add to the problem.
In short, the government’s programs are meant to make life better for many Guyanese, but they’re also driving inflation. It’s time for the government to reassess and make sure our economy stays stable and that the average citizen can keep up.
Sincerely,
Keith Bernard
