Economist warns that prices will continue to rise in the short term

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Economist warns that prices will continue to rise in the short term

Citizens have been warned to brace for continued increases in the cost of goods.

UWI economist Dr Vaalmikki Arjoon, in an interview with GML, stated that due to global supply chain issues, prices will continue to rise in the short term.

He explained that these supply chain issues were creating shortages in goods we typically import, “highlighting the need to be more self-sufficient and get serious about building the non-energy sectors.”

Arjoon noted, “Last year, prices went up as many suppliers were shut down due to pandemic lockdowns, causing a global shortage of many commodities of food items, medications etc.”

He said the situation could have been worse for food prices locally but the competition to sell imported food items between several supermarket chains would have helped to marginally suppress some of the price increases to the customers, even though they are still higher.

On the recently announced price hike by the Kiss Baking Company, Arjoon said this could increase the sales for small bakeries across the country that offer prices lower than Kiss.

He said it also presents an opportunity for supermarket chains to offer more shelf space for the bread of these other local bakeries that are cheaper for the consumer.

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