The ABLP Administration has failed to tackle the rising cost of living in a meaningful way. The unrelenting rise in the cost of goods and services, coupled with stagnant wages, has eaten into the wallets of citizens and residents in Antigua and Barbuda, leaving them with significantly reduced spending power.
Inflation in the cost of food, in particular, which is a major area of expenditure for families, continues to rise unchecked, following June’s 10.3% increase. According to the latest Consumer Price Index, for July 2022, the price of food rose 10.8%, with increases in all nine sub-categories, including the index for Meat and Meat Products which rose 19.0%.
Given these economically challenging circumstances, a mere $1 drop in the price of gasoline, announced by the ABLP administration, is meaningless in improving “people’s standard of living.” Notably, the price of gasoline today is $3 more expensive than before the Ukraine War, although average global oil prices have since fallen below the pre-war levels.
The paltry $1 per gallon reduction in the gas price would amount to just $20 in monthly savings, for a motorist who purchases 20 gallons. For citizens and residents contending with the meteoric rise in the cost of goods and services, this reduction has little impact on the hardships that they face.
The UPP maintains that some of the best ways to bring meaningful relief to the people include:
1. The reduction of customs duties on certain essential foods to reduce the price of food on store shelves;
2. The reduction of customs duties on building materials not produced within Caricom countries;
3. Raising of the Minimum Wage to a National Living Wage, in line with inflation;
4. Raising Government Wages to a fair level, in line with inflation.
“Such sweeping cost of living adjustments would likely generate household gains of $100s of dollars in monthly spending power.,” says Harold Lovell, Political Leader of the United Progressive Party. He continues, “This would also help to offset the impact of the high gas prices on consumers’ wallets and increase the pace of the country’s sluggish economic recovery.”
