Prime Minister Gaston Browne announces measures to target problematic inflation

Prime Minister Gaston Browne has outlined his government’s commitment to reducing inflation to 4% by the first quarter of 2025, as part of broader efforts to ease the cost-of-living burden on citizens. Addressing Parliament during the 2024 Budget Presentation, Browne acknowledged that inflation remains a pressing issue for Antigua and Barbuda, despite signs of improvement.

The Consumer Price Index (CPI) for September 2024 reported an inflation rate of 5.6%, the same as in September 2023, but a marked decrease from the 8.6% recorded in September 2022. “While we’ve seen some reduction compared to 2022, we are not satisfied with the current rate and are determined to achieve further progress,” Browne said.

Recognizing the challenges posed by global price increases, especially for import-dependent countries like Antigua and Barbuda, the government has implemented several measures to stabilize prices and provide relief to citizens. These include amendments to the price control order to cap increases on essential items, both food and non-food.

The government has also committed significant resources to subsidies, particularly in the fuel sector, to shield citizens from volatile international prices. Over the past two years, more than $12 million has been allocated to subsidize the cost of liquefied petroleum gas (LPG), keeping the price of a 20-pound cylinder at $32, far below the Eastern Caribbean Currency Union (ECCU) average of $38.44.

Fuel prices in Antigua also remain among the lowest in the ECCU region, with gasoline priced at $14.50 per gallon, compared to an average of $15.37. Diesel is priced at $14.25 per gallon, below the regional average of $14.95. Browne emphasized that these price levels are only possible due to the government’s intervention and subsidies. “Every time you purchase a cylinder of propane gas, the government is subsidizing it. Leadership matters, and a government that cares,” he stated.

Additionally, targeted fuel subsidies have been extended to bus and taxi operators through a voucher program. From January to September 2024, 197 bus operators and 733 taxi operators received fuel support amounting to over 704,000 gallons of fuel at a cost of $2 million. Since 2021, the government has spent nearly $9 million on fuel subsidies for bus and taxi operators and an additional $2 million for fisherfolk.

The government’s assistance extends beyond fuel, with a strong focus on helping the most vulnerable segments of the population. Through the government assistance program, $17.2 million has been spent on food vouchers as of September 2024, helping thousands of families access essential items. Browne highlighted the importance of these initiatives in alleviating the cost-of-living pressures brought on by global inflation.

“These subsidies and programs demonstrate our administration’s caring nature and commitment to lessening the impact of high prices on households,” Browne said, adding that the government remains steadfast in its mission to support those in need while pursuing policies to stabilize the economy.

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