J. Kwasi Thompson, M.P. for East Grand Bahama: Inflation Is Imported; High Costs Are Not – PLP Blames the U.S. While Bahamians Pay the Price

Bahamians understand that inflation in the United States affects prices here at home. What they should not accept is a government using global pressures as a shield while ignoring the direct impact of its own decisions on the cost of living.

While inflation rates may rise or fall year to year, the reality for Bahamian families is that prices remain permanently higher. Once costs increase, they do not come back down. Government policy determines whether those higher prices are eased or compounded. Over the past four years, PLP decisions have consistently added pressure, making everyday life more expensive for Bahamian households. External forces matter, but domestic choices matter just as much. This government controls policy, taxes, fees, energy policy, housing rules, and the cost of doing business. Instead of using those tools to reduce pressure, the PLP has made decisions that directly increase costs across the economy—driving up food prices, electricity bills, rents, and business expenses—while families fall further behind and small businesses struggle to survive.

The PLP has taken specific actions that have raised costs for Bahamians. Fees on small businesses, particularly in the marine and boating sector, have increased significantly, raising operating costs that are inevitably passed on to consumers. VAT has been expanded on breadbasket items that families rely on every week, increasing grocery bills at a time when household budgets are already stretched. Despite repeated promises, there has been no meaningful progress on improving the ease of doing business. Red tape remains entrenched, approvals are slow and unpredictable, and compliance costs continue to rise with no relief in sight. The government points to VAT adjustments, duty changes, and social assistance programmes as evidence of relief. If those measures were effective, Bahamians would feel it in their wallets. Instead, the cost of living remains high, and more households are forced to make painful trade-offs just to get by. Relief that exists only on paper does not help at the grocery store, when paying electricity bills, or covering rent.

At the same time, the broader economy is losing momentum. Economic growth has slowed significantly from post-pandemic highs, and several productive sectors are contracting. Even on energy, the government’s own plan will push electricity bills higher until at least 2027. Bahamians are being asked to absorb higher costs now with only promises of future relief—promises that do not help families facing rising bills today. After four years in office, the PLP is asking for more time. Bahamians cannot afford it—not at the grocery store, not on their light bills, and not in their rent. The Free National Movement’s approach is clear. Affordability starts with disciplined governance, lower and more predictable costs, policies that genuinely support local business and home ownership, and decisions that put the needs of Bahamian families first. Restoring affordability is not about slogans or excuses. It is about making better choices and delivering real relief where it matters most.

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