But even though the economy may be growing, inflation is also rising - to record levels not since 2008. Coye explained that the rate of inflation in Belize is influenced heavily by our major trading partner, the US. He also said, though, that the government has been providing subsidies to try and stave off some of the effects:
Chris Coye - Minister of State, Ministry of Finance
"The inflation in the developed countries, in Europe, they're also very high, but for us, our major trading partners which includes the US is exceedingly highly, it's far more than what the inflation is in Belize, I think it's around, the last monthly report indicated that inflation was around 8% in the US, for Belize we are around 5% so we are, what would we say, 60% less than what the inflation is in the US but the fact of the matter is that we do have inflation, we seeing prices go up, largely because of the fuel costs, and that largely is impact by the war in Ukraine by also by supply chain issues and demand issues even before the war in Ukraine. But with all that together, there is also the effect on food prices, especially on essentials and so we do see the inflationary effect across the board, government has made decisions and efforts with a view to mute the impact of inflation for those most affected. We have suffered 4 million almost 4.5 million by the level of substantial excise tax reductions that we've initiated. Now that is only one measure, a second measure is in terms of the bus in transportation, a little over a million dollars in subsidies to ensure that the adjustments in cost for transportation are not as significant as they otherwise would have been. There's also the million dollars plus with the tour operators that is being managed through the Belize Tourism Board given what they are suffering directly through the fuel cost. Recently the prime minister and the Minister of Agriculture also spoke about the bread subsidy. that, by the end of this year, will cost over a million and a half dollars so those are substantial subsidies and tax adjustments with a view to mitigate impact of inflation on those that are most in need."
These subsidies are only temporary, however, and he explained that the fuel subsidy is expected to last for six months while the bread subsidy will be for seven.
