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Pres. warns Guyanese to brace for increase in cost of living
Kaieteur News – During his statement yesterday, President Dr. Irfaan Ali warned citizens to brace for an increase in cost of living as a result of the global supply chain crisis.
President Dr. Irfaan Ali.
The President said, “What are we doing today is presenting you with the facts, with reality, with what the government is doing to address issues that are global in nature, how we are defining policies to address these issues, the impact global challenges is having on our economy, and the way in which the government is addressing those challenges.”
To this end, he added that he believes that it is very important for all Guyanese to understand that “We do not live in an isolated environment and we are part of the global community.” The President said that Guyanese are part of the process of globalisation and what occurs globally; while highlighting that the country is also affected by global challenges.
Pointing to the impact of the pandemic, which caused tremendous increases in cost for living, the President noted that the closure of major players in international markets, factories, terminals, and port facilities has created severe backlogs for shipping.
According to President Ali, the delay costs are then translated into new prices that consumers are facing globally. He said, “So the net effect of all of this is increased costs at the production level and increased costs at a logistics level and that combined increase is what is driving up prices globally, and Guyana is not excluded from this phenomenon.”
“This situation, as I speak to you, is compounded and the forecast suggests that the supply chain prices” are underpinning “the widespread hype and freight increase is expected to last a bit longer.”
President Ali added that there was indication that, by the first quarter of 2022, things will normalise “a bit”. However, he said based on what is being observed, the supply chain issue will continue to be a problem.
According to the President, the supply chain crisis has resulted in shortages in construction materials and food supplies. This he stated resulted in increased prices and due to what is forecast, the increases can continue to occur.
Moreover, while the President did not announce the promised increase for public servants, he noted that these discussions are still ongoing.
Last month, President Ali renewed his commitment towards the increase for public servants. However, his commitment comes on the heels of the recent Half-Year Report from the Bank of Guyana (BoG) noting that public sector minimum wage remains at $70,000, while consumer price continues to escalate.
“Public sector minimum wage remained at G$70,000 per month while the income tax threshold was unchanged at G$65,000 per month during the first half of 2021,” the report stated.
Additionally, a table in the report illustrated the increases in the cost of food by 12.5 percent, miscellaneous goods and services by 1.9 percent, transport and communication by 1.8 percent, furniture by 1.7 percent and medical care by 0.3 percent.
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