Food prices jumped by 3.2% in first six months of 2024

Oct 06, 2024 News

– Bank of Guyana

The Bank of Guyana (BoG) reported that food prices jumped by 3.2% during the first six months of 2024.

Food prices jumped by 3.2% in first six months of 2024

The cost for vegetables and fruits recorded further increases during the first six months of 2024.

Kaieteur News – The cost of food has been steadily increasing over the past six months, as heavily reflected on consumers’ supermarket bills.

The Bank of Guyana (BoG) in its 2024 Half-Year Report revealed that all food categories recorded higher prices with the exception of fats and oils (excluding butter).

According to the Report, “The Urban Consumer Price Index (CPI) year-to-date inflation stood at 1.6 percent, primarily due to a 3.2% increase in prices of food.”

The Consumer Price Index shows an increase in the cost of meat, fish and eggs; cereals and cereal products; milk and milk products as well as vegetables and vegetable products.

Central Bank explained, “The aggregated food category increased by 3.2%, reflecting higher prices for prepared meals and refreshments by 14%, fruits and fruit products by 12.3%, cereals and cereals products by 4.7%, non-alcoholic beverages by 3.7%, condiments and spices by 3.6% and vegetables and vegetables products by 3.1%.”

Inflation

Notably, the Government of Guyana’s Mid-Year Report also reflected an increase in food prices. The report explains, “At the end of June 2024, the 12-month inflation rate stood at 4 percent. This is on account of an increase in the price of food, which contributed 3.8 percentage points to the overall 12-month inflation rate. Within this, prices for vegetables and vegetable products accounted for 1.8 percentage points, while cereals and cereal products and meat, fish, and eggs each contributed 0.5 of a percentage point.”

Inflation, as described by the International Monetary Fund (IMF), refers to the rate of increase in prices over a given period of time. It is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.

Guyanese have been complaining about the rising cost of living in the country as the cost for basic services also continue to climb.

According to the Bank of Guyana Report, “The end of year inflation is forecasted at 3.2% as continued efforts by the Government are aimed at containing prices.”

Govt. Measures

Meanwhile, government in addressing the high cost of food said the impact during the first six months of the year was as a result of a combination of domestic and global factors. “These included disruptions in domestic supply chains and increased demand spurred by economic growth and population dynamics. Climate conditions also contributed to challenges in food production and distribution,” the administration said.

It noted that a number of measures have been proactively implemented to reduce the cost of production and cushion the cost of living; these are expected to continue throughout the year. Government added that it has engaged farmers to explore ways of directly reaching consumers in an effort to continue to contain food prices.

This year, the government allocated $7B in the 2024 Budget to help offset the cost of living. It has not used the funds yet.

(Food prices jumped by 3.2% in first six months of 2024-Bank of Guyana Reports)

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