Inflation is likely to be with The Bahamas for a while, given that interest rate hikes in the US to stem inflation will lead to higher costs being passed down, RF Bank and Trust Vice President of Investment Banking Jim Wilson said yesterday.
Speaking to media on the sidelines of RF's Brunch and Learn series for World Investor Week, Wilson said the tourism boom could present an important cushion for the country as it rides out the inflation, caused chiefly by COVID-19 and Russia's war with Ukraine.
"I think we're gonna see inflation for a while," said Wilson.
"I mean, let's face it, we import everything and, you know, as much as we have price controls on some of the key things and food and things like this, prices are still going up."
He added: "I think the interest rate hikes in the US, all that does in the end is the companies who are being affected by those high interest rates are gonna pass that on to their clients, and it's just a cycle.
"But, I think, hopefully, we will have enough of a cushion here. We had a lot of revenge tourism in the past year or two, as we came out of COVID; and, hopefully, we sustain that for a little while.
"You know, I think we have some more rooms coming on stream here in The Bahamas. We have a lot of foreign investments still coming in. So, I think there's opportunities for Bahamians to get involved to try and offset the effects of that inflation."
Wilson suggested that while people may turn their ire towards businesses for high prices, they have to remember that companies like grocery stores have to make money in order to be in business to keep their own supply chains running.
"They're not doing charity, so they need to make money to be able to be there next year to keep supplying food," he said.
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