The opposition PNCR yesterday called on the government to take measures to restrain the rise in the cost of living including the introduction of “temporary price ceilings” and “consumer food subsidies”
On Tuesday, President Irfaan Ali, while explaining the reasons behind steadily rising food prices, had frowned upon the idea of implementing price control measures as a cushioning mechanism.
“I would not ever take Guyana back to any system that did not serve us well,” the President said.
He explained that the prices of a lot of the commodities are linked to what is happening on the international markets namely supply chain bottlenecks and high fuel prices.
“The price of a lot of these things is linked to what is happening internationally. We import inflation, we import increases in fuel prices, we import increases in chemicals, in agrochemicals and pesticides everything.
“Notwithstanding that we have been highlighted by most international reports for the strong steps that we took in ensuring that there was not a full pass-on of the impact on people’s pockets and households. Neverthe-less, there is still an issue because we are importing this to a large extent,” Ali said on the sidelines of an event on Tuesday.
He added that his government is aware of the situation and is working on putting measures in place. Moreover, the President related that the cabinet is also exploring different initiatives and measures to form part of Budget 2022 in an effort to cushion the rise in the cost of living.
Interestingly, the President via his Facebook page yesterday posted an image with the caption “through farming and agriculture, we can reduce the cost of living by growing our own food and producing our own products.” The image also had the statement “the power to reduce the cost of living is in your hands.”
That post received mixed reactions from Facebook users with some lauding the statement while others questioned how will they get started when access to the materials and space to invest in agriculture are distributed inequitably.
Alarmed
Meanwhile, the People’s National Congress Reform (PNCR) said that it is concerned by the ever-increasing and unmitigated rise in the cost of living plaguing Guyanese. It took the government to task over its failure to insulate “the economy during the pandemic and from opportunists who seek to take advantage of consumers.”
“Experts have surmised that the sharp rise in the cost of living is likely to continue since the global economy has been hard hit during the pandemic. The PNCR calls on the Government to swiftly implement a plan of action to bring meaningful redress for all sectors of society and not allow hardships to fester creating the opportunity to whimsically hand out envelopes and grants which will invariably place an additional strain on Guyana’s economy,” the Party said in a statement.
The party noted that the steep increase in the prices for basic food items such as milk, cooking oil, plantains and bread are all causes for worry since there is no indication of those and many more items stabilizing in price.
“The PPP/C government has shown that they do not possess any vision for the financial growth and sustainability of the economy,” PNCR said.
As a consequence, the PNCR called on the Ali administration to remove the duty on all fertilizers, introduce temporary price ceilings to curb the constant rise in prices, introduce consumer food subsidies and additional increases in public sector wages.
“Guyanese must not have to choose between eating or starving because the prices are exorbitant. Guyanese deserve better. The PNCR calls on the Government to address with efficacy the issue of high cost of living to the benefit of all Guyanese,” the PNCR added.
Food prices
Stabroek News conducted a walkthrough of the Bourda Market yesterday where vendors reported that prices have stabilized at this point.
“We nah get plantains for $300 a pound here. Is $160 right now so let them people know the right thing,” one vendor lamented.
This newspaper observed that while the cost for some vegetables and herbs remained high, the prices for others dropped. A piece of pumpkin, weighing approximately one pound was tagged at $260 while a pound of sweet potatoes was going for $280. Cassava was being sold between the prices of $200 to $260 and plantains ranged from $160 to $260.
One vendor told Stabroek News that “fine plantain” is cheaper than the “fat one them.”
The Bureau of Statistics published its last Consumer Price Index for November 2021, where it showed that food prices have steadily increased with a slight dip for November.
The Food and Agriculture Organisation (FAO) Food Price Index reached a 10-year high in 2021, despite a small December decline, the Organisation said. The FAO Food Price Index (FFPI) averaged 133.7 points in December 2021, down 1.2 points (0.9%) from November, but still up 25.1 points (23.1 %) from December 2020.
“Except for dairy, the values of all sub-indices encompassed by the FFPI registered monthly declines, with international prices of vegetable oils and sugar falling significantly month-on-month. For 2021 as a whole, the FFPI averaged 125.7 points, as much as 27.6 points (28.1 %) above the previous year with all sub-indices averaging sharply higher than in the previous year,” the FAO said in a recent report.
Meanwhile, a recent report from the World Bank on the Global Economic Prospects said that global consumer price inflation is envisioned to peak in the first half of 2022 and then decline gradually through 2023. It noted that price pressures from shortages of key inputs and the recent run-up in commodity prices are expected to ease as global growth moderates and commodity supplies expand.
“The global outlook for 2022 is somewhat weaker than envisioned in previous forecasts. Although the pandemic has worsened somewhat relative to previous expectations, the economic impact of renewed outbreaks has been modest amid widespread vaccination in major economies,” the report stated.
It noted that global inflation has risen at a faster pace than anticipated in recent months, resulting in steady upward revisions to consensus inflation forecasts while adding that further rises in commodity prices; continued strong demand for goods amid more persistent supply constraints; and, in some economies, sustained currency depreciation could compound inflationary pressures.
“In particular, large outbreaks of the Omicron variant could further disrupt global supply chains and transportation logistics, potentially contributing to global inflation pressures. A renewed surge in energy prices could also result in sharply higher food prices if it were to cause a sustained increase in the cost of agricultural inputs such as fertilizers. Meanwhile, more pronounced labour shortages, particularly in sectors facing strong demand and tight supply, could further accentuate wage pressures which could, in turn, pass through to consumer price inflation,” the World Bank stated.
Additionally, World Bank President David Malpass said that food-price inflation and supply shortages call for heightened attention to food security, particularly in fragile and conflict-affected countries. He also noted that access to clean water and better nutrition are vital to reduce stunting.
