IMF Predicts 7.3 Percent Inflation Rate

NASSAU, BAHAMAS – The cost of living may be on the way up again, as the International Monetary Fund is projecting the highest price hike in decades looms.

Berthony McDermott reports.

The IMF is projecting consumer prices will increase by 7.3 percent this year.

Prime Minister Philip Davis says the news didn’t take him by surprise.

He says his government is working to mitigate the impact on consumers.

The IMF’s world economic outlook comes as Bahamians face rising fuel, food, and other prices and as the country is still on the rebound following the global pandemic.

The IMF’s projected increase would be the highest annual percentage change in inflation since 1991 when consumer prices increased by 7.3 percent.

Inflationary pressures are projected to see a lower increase in 2023 of 4.5 percent, before leveling out to pre-pandemic levels of 2.4 percent in 2027.

His comments were echoed by Social Services and Urban Development Minister Obie Wilchombe who said the government will increase social services assistance amid this grim revelation.