In July the country's inflation rate increased by 0.6 percent when compared to June the Bahamas National Statistical Institute explained in its most recent Consumer Price Index for the month of July.
The BNSI data explained that the July increase followed a 0.1 percent increase in inflation between May and June 2023.
According to the BNSI, the categories that saw the highest increases were alcoholic beverages, tobacco and narcotics, as well as miscellaneous goods and health.
The report said alcoholic beverages had an increase of 4.1 percent, while tobacco and narcotics saw an increase of 3.5 and miscellaneous goods and health a 1.3 percent increase, all when compared to the previous month.
"On a year-over-year basis, the CPI rose a little over 2 percent over the same period last year in 2022," the BNSI said.
"The major categories that contributed to this rise included alcoholic beverages, tobacco and narcotics 9.5 percent, health 8.9 percent, food and non-alcoholic beverages 5.9 percent and electricity 4.2 percent, respectively.
"Diesel prices along with gasoline continue to decline 25.2 percent and 19.4 percent, respectively, compared to this period in 2022. In addition, compared to June 2023, diesel prices continued to decrease by 3.3 percent, while, gasoline prices showed a decline 2.4 percent, for the month of July 2023."
RF Bank and Trust Vice President of Investment Banking Jim Wilson said last week that 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.
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.
A recent report released by the Inter-American Development Bank said that inflation in The Bahamas is expected to decrease to about three percent this year and into next year, rated against the 4.1 percent rate recorded for March of this year.
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