The Bank of Guyana has reported that food prices have increased by 3.2% during the first half of the year, with almost all food categories being affected by the increase.

In its half year report, the Central Bank noted that the Urban Consumer Price Index (CPI) year-to-date inflation stood at 1.6 percent, primarily due to a 3.2 percent increase in prices of food.

The Central Bank explained that all food categories except for oil & fats (excluding butter) recorded higher prices.

“The aggregated food category increased by 3.2%, reflecting higher prices for prepared meals and refreshments by 14%, fruits and fruit products by 12.3%, cereals and cereals products by 4.7%, non-alcoholic beverages by 3.7%, condiments and spices by 3.6% and vegetables and vegetables products by 3.1%,” the Central Bank noted.

President Irfaan Ali is reportedly expected to address the cost of living issue at the opening of the next session of Parliament.

In addition, the Central Bank said miscellaneous goods & services index increased by 1.1 percent, due to a 16.4 percent increase in prices in restaurants and cafes. In addition, medical care & health services, housing, transport & communication and education, recreational & cultural services recorded price increases by 1.1 percent, 0.2 percent, 0.1 percent and 0.1 percent, respectively.

In contrast, the Banks explained that lower prices were recorded within the category of furniture, particularly for household appliances and cleaning materials by 1.5 percent and 0.2 percent, respectively

The Central Bank noted however noted a real oil GDP growth of 49.7 percent and non-oil GDP growth of 12.6 percent were recorded. The Bank said accelerated production of crude oil has contributed to the real oil growth, while strong performance in construction, agriculture and the services sectors influenced the real non-oil growth. 

“Notwithstanding the external economic downturns that persists, Guyana was able to achieve high economic growth of 49.7 percent in the first half of the year. This high level of growth is estimated to be sustained in the second half. This outturn is expected on account of higher output of crude oil, coupled with improved performance within the non-oil sectors. The end of year inflation rate is expected to remain steady, as local and world food prices and energy prices are expected to moderate,” the Central Bank stated.

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