Inflation rises in The Bahamas

The Central Bank of the Bahamas (CBOB) says inflation has risen to 0.90 per cent up from 0.88 per cent within the period of June 2020 to June 2021.

The bank recently reported that crude oil prices continued to rise this year, following unprecedented lows in 2020, with prices of goods and services rising in most categories to date.

According to the central bank’s monthly economic and financial developments in September there was a 42.3 per cent increase in crude oil prices from January to September this year to B$72.94 a barrel.

Rising oil prices globally contributed to an increase in inflation in The Bahamas. (File photo)

Consequently, average clothing and shoe prices rose 12.7 per cent, despite falling to 8.4 per cent last year.

Additionally, miscellaneous goods and services (2.7 per cent), food and non-alcoholic beverages (2.3 per cent), and housing, water, gas, electricity and other fuels (1.3 per cent) recorded an increase in average costs following a year-on-year decline.

In the report, the average inflation rate for furniture, household equipment and daily household maintenance has increased by 2.5 per cent.

A specimen of the Bahamas $50 dollar note. (File photo)

However, despite this the central bank said inflationary pressures are expected to remain reasonably restrained despite rising international oil prices.

It noted that inflation moderated for alcoholic beverages, tobacco and narcotics (2.5 per cent), health (0.9 per cent) and restaurants and hotels (0.2 percent).

After gains in 2021, average prices declined for recreation and culture (3.3 per cent) and transport (2.3 per cent), while the fall-off in average costs for communication extended to 4.5 per cent.