Government works to contain inflation rates, reduce cost of living
By VonDez Phipps
Reporter-SKNVibes.com
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Hon. Dr. Timothy Harris
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BASSETERRE, St. Kitts – Minister of Finance, Industry, Commerce and Consumer Affairs, Hon. Dr. Timothy Harris has indicated that despite a moderate increase in inflation over the last three years, the government intends to strengthen its efforts to control local inflation rates and considerably decrease the cost of living.
The inflation increase has been attributed mainly to the increase in oil prices which have affected the cost of production in all sectors as well as the cost of transportation. According to the Organization of Petroleum Exporting Countries (OPEC), the basket price of crude oil increased from US$61.08 in 2006 to US$69.08 in 2007 to US$104.61 in 2008.
In the delivery of the 2009 Budget Address Harris yesterday (Dec. 16), he noted that the government is cognizant of the implications of rising prices, and has worked assiduously to reduce the cost of living and preserve the purchasing power of citizens.
“Between 2006 and 2007 the Government actively sought to alleviate the burden of high food prices on our people. This was effectively done by stemming the substantial increases in price on food and non-food items through the enactment of regulations such as the Price Control Order No. 41 of 2007 and the Consumption Tax Amendment Order No.11 of 2008.
“We also granted concessions to bakers in order to keep the price of bread relatively stable. In addition, surveillance activities have been increased to ensure compliance with statutory orders and a consumer awareness programme has been instituted to provide comparative pricing information so that our people can make more informed purchases. ~~Adz:Right~~
Harris said that in the upcoming year, surveillance activities will be expanded to the areas beyond the limits of Basseterre and in addition, the structure of the Licensing and Price Control Unit will be strengthened so that it can continue to respond to rising costs and shortages in a sustainable manner. He also announced that a new Consumer Complaints and Competition Affairs Commission will commence operations in 2009.
The Minister said the reduction of the inflation rate from 8.5 percent in 2006 to 4.5% in 2007 is testimony to the success of government initiatives to contain the rate of inflation and slow down increases in the cost of living. Harris indicated that the new price control initiatives are only the latest additions to government’s “solid track record in the provision of safety nets for vulnerable groups in our country”.
He further stated that in 2009 the government will undertake an assessment in order to ensure that the services provided are reaching the targeted groups in the communities as he opined, “if it is not felt then it is not happening”.
