Dear Editor,
Reference is made to your ongoing SN series on “How the Cost of Living is affecting People”. SN’s series is practical, providing a direct response from the public of the effect of inflation on ordinary people. The SN series is credibly supported with direct words from those impacted by cost of living increases. The entire public is affected by inflation, some more than others. The middle and lower class and the poor are most impacted.
Contemporary official inflation rate is 4% is which is at par with or even lower than that of more developed economies where Guyanese goods are sourced. Prices for most items have more than doubled, tripled, quadrupled over the last eight years. Prices during the Covid period have not gone down. To government’s credit, fuel price has been stable and even experience a small decline. Transportation price has been stable. Bus and Taxi operators are known to set their own prices gouging commuters. Transportation costs went up by about $20 for mini bus over four years of this administration. Bread price was also relatively stable, even during and after Covid, going up modestly. Average price increase of certain goods over the last year could be 4% as government data claims.
But prices for fresh produce including dairy have gone up by 100% over the last year. And prices for many food items went up by 200-300% from mid-2020 to end of 2022. Rent has more than doubled since the presence of expatriates over the last four years. Locals and low income workers are priced out of the rental market. Home purchase is out of question for many new families or households.
All governments would like the lowest possible official inflation rate because it is tied to so many fiscal or social programs, contracts, and monetary policy. Governments all over the world (third world countries in particular) are known to manipulate inflation figures. Developed countries are not known to mess around with inflation calculation because of consequences. In the USA, it is impossible to manipulate inflation numbers because several government agencies, independent of each other, calculate inflation. States also have their own agencies monitoring inflation. Their numbers tend to accurately coincide.
In third world countries like Guyana, parliament has virtually no power over the behaviour or performance of Ministers. When PAC held meetings, Ministers (from both sides) tend not to show up. Parliament is powerless to hold them accountable. Hearings were never held on inflation and what could be done to mitigate it.
The ordinary person does not know or care about the technical term used to describe the rise in prices. They are only concerned about the effects of rising prices on their life and what can be done to lower them. Government can’t go back to price controls of the 1970s and 1980s to put a lid on inflation; that led to mass starvation. But measures are needed to help the poor especially those on fixed income — transference of money up to a certain maximum amount to pay basic utilities of low income people so more money can become available for basic foods.
Sincerely,
Vishnu Bisram
