Cost of living crisis needs “multidimensional” response – Pres Ali
President Dr Mohamed Irfaan Ali said rising cost of living in Guyana stems from several converging factors, ranging from global imported inflation to shifting consumer habits and retail markups.
He said that the government’s response must be “holistic” rather than centred on any single cause.
The president, addressing the issue at a press conference last Tuesday at the Office of the President, Shiv Chanderpaul Drive, said his administration has already implemented numerous measures to ease pressure on households.
However, “There are certain things that we don’t have control over.”
For example, global inflation. President Ali explained that global inflation has placed pressure on fuel and fertiliser prices.
Although Guyana produces crude oil, the country imports all refined products, meaning it absorbs global price volatility on gasoline, diesel and cooking gas.
He said this is why the government is pursuing investment in a local refinery, potentially linked to a national oil company, along with expanded fuel storage capacity, to build stability against future global shocks.
President Ali also pointed to more families eating out and cooking less at home as part of the same shift.
Separately, the president raised concerns about markups between farmers and retailers, citing cases where produce sold by farmers at a base price is marked up significantly by the time it reaches consumers. He suggested the creation of farmers’ markets across the country to give farmers more direct access to buyers.
The president also addressed the cost of bottled water, noting Guyana’s capacity to meet local demand through domestic bottling companies, and cautioned against reliance on costlier imported water.
He said the government’s role is to enable the private sector rather than compete with it, though essential commodities may require targeted attention.
The head of state said no single policy tool, including grants, can fully address the cost-of-living pressures Guyanese face, stressing that grants are meant to support vulnerable groups and family income, not resolve the underlying structural issues.
“We have to address this in a multidimensional frame,” President Ali said. “Cultural issues, changing eating patterns, changing buying patterns, the margins that are there, that is the only way. It has to be holistic.”
