Prices, prices, prices!

Jun 26, 2024 Features / Columnists, Peeping Tom

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Kaieteur News – The price of a chicken fried rice is now $1400. During the pandemic, the price was $960. In a matter of a few years, the price has climbed by more than 50%.

I have said before that the best way to gauge the increase in the cost of living is to look at the movement of food prices in our Chinese restaurants. These businesses only increase their prices when there is no other choice available.  If you want to know how high is inflation just look at the increase in prices for a chicken fried rice or a chicken chowmein.

But it is not only the Chinese restaurants that have increased their prices. Fast food enterprises have also increased their prices. At one such place, a 3-piece combo has moved from $1700 to $1900.

Even roadside food vendors have upped their prices. This is the reality facing Guyanese consumers.

Chicken, a key ingredient in many meals, has also become more expensive. The cost of one pound of plucked chicken is now G$450. This rise in local food prices therefore cannot simply be attributed to international factors. There has been an increase in the cost of local produce.

Parents are particularly hard-hit by these rising costs. Many parents struggle to provide their children with lunch for school. Whether they pack a lunch or give their children money to buy a meal at school, the costs have become a real burden.

Some parents are breathing a sigh of relief that the school holidays are coming because the cost of providing meals for their children’s lunch kits is placing a real strain on their finances. The burden has become so heavy that some parents are unable to send their children to school. It is humiliating to see a child without lunch at school when their peers have food.

When parents go to the grocery store, they return with far fewer goods than they used to. Despite spending the same amount of money, their carts are noticeably emptier. This is a stark illustration of how inflation erodes purchasing power. Families are forced to make difficult choices, cutting back on essentials to make ends meet.

The disposable income of many households has not kept pace with the rising costs. Salaries and wages increases have not kept abreast with the price increases in the market.  This growing disparity leaves families with less money to cover basic needs. The result is an increased financial strain on households, particularly those with children.

Nothing in the market now sells for $100. Every bundle of vegetables is now $200 and upwards. Vine vegetables like bora sell for as much as $500 for a small bundle. This small bundle can hardly be enough for one meal for a family. Prices are rising, making it difficult for families to afford fresh produce.

Bananas, which used to retail for as low as $100 per pound, are now $300 per pound. Fruits have become a luxury that the poor cannot afford. Five mangoes are currently selling for $500. These price increases make it difficult for families to buy nutritious fruits. The rising cost of fruits adds to the financial burden on consumers, pushing healthy options out of reach for many.

Advantage is being taken of consumers. The increase in prices cannot be solely attributed to supply chain issues and imported inflation. If these were the only factors, how can we explain the significant price hikes for locally-produced food?

Local farmers and vendors are not facing the same import costs, yet prices for homegrown vegetables and fruits have skyrocketed. This suggests that businesses and vendors are taking advantage of the situation rather than reflecting true cost increases. This exploitation exacerbates the financial strain on families, making basic necessities unaffordable.

Part of the problem is that sellers have internalized the notion that Guyana is an oil economy and therefore can afford higher prices. Since the onset of oil production, prices have increased, establishing a clear link between the oil economy and the movement of prices in the market. This perception has led to inflated prices, as sellers believe consumers can and should pay more. However, the reality is that most citizens are not seeing the benefits of the oil economy in their daily lives.

There used to be a time when going to the market just as the vendors were packing up to go home meant getting bargains. Vendors would be keen to sell their produce cheaper rather than have to dump it.

Not anymore, the vendors would pack up their leftovers and take them home and bring them back when next they come to sell. They prefer to take it back home and have it rot than reduce the prices.  No bargains are being given to late-hour shoppers.

Consumers have the power to change this state of affairs, but they refuse to exercise it.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)

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• chicken, Chinese, chowmein, increased, matter

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