Linda Hutchinson-Jafar, Business Writer

Ewart Williams, governor of the Central Bank of Trinidad and Tobago, has warned that consumerism is fuelling record inflation which hit 10 per cent in November, a 12-year high.

Trinidadians and Tobagonians appear mixed on whether to jump into the usual Christmas shopping spree or restrain themselves, given the increased cost of living.

But it is a difficult choice as furniture stores are outdoing each other in advertising discounted sales and offering 'gifts' such as ham, wares and electronic appliances as enticement.

Business owners, however, are not worried about the slower pace of shopping over the past few weeks. They anticipate their stores will be packed with shoppers in the final days leading up to Christmas and into the New Year.

Early on, governor of the central bank Ewart Williams warned about growing consumerism and how it was fueling the high inflation which in November hit 10 per cent year on year, the highest rate in 12 years.

Last week, David Abdulah, president of the Federation of Independent Trade Unions and Non-Government Organisations (FITUN), urged shoppers not to be tempted by sales but to help fight inflation by curbing their temptation to spend.

Extreme measure

FITUN members also took the extreme measure of fasting daily to raise awareness of high food prices.

Food continued to be the main driver of headline inflation, registering an increase of 26 per cent between October 2005 to October 2006 with fruit and vegetable prices posting increases of 19.9 per cent and 63.4 per cent, respectively during the period.

There were also significant increases in the prices of fish, up by 31 per cent and meat products by 12.9 per cent.

Abdulah said Christmas was a time when many business people "will push it as far as they can" because of people's high spending patterns during this period.

"This is why we are saying to consumers, 'just don't buy'. We are saying shop wisely. Save something. Tomorrow, you could never tell, you may need that extra income," he said adding that if consumers do this, it will force the businesses to reduce prices.

Slow start

Gail Merhair, president of the San Juan Business Association, representing business on the eastern outskirts of the capital Port-of-Spain said despite a slow start sales have been consistent when compared to last year and expects it to shift to a higher gear by the end of the week.

Merhair also felt that consumers were making more informed decisions when shopping.

"They're not buying anything spontaneously and although they're buying gifts, grocery items and alcohol, with increased inflation, they're realising that they don't have the same purchasing power, so they're being more cautious," she added.

Gregory Aboud, president of the Downtown Owners and Merchants Association in Port of Spain said to date sales have been slow but on par with last year.

"We have heard reports that consumers may have, in some circumstances, less money available for Christmas shopping because of the need to reserve more funds for food, fruit and vegetables," the business owner said.

There is also a noticeable trend of Caribbean nationals descending on Port of Spain specifically for shopping bargains.

"Islanders are looking for better prices in Port-of-Spain. A lot of sporting gear, as well as draperies, curtains, Christmas decorations and casual clothes are being sold," Aboud said.

Not to be left out, Tobagonians from the tourist isle are also hopping over to Trinidad for their shopping.

The Newsday newspaper quotes a Port official in Scarborough as saying that over the past two weeks, mainly women have been leaving Tobago on the early morning sailing on the inter-island fast ferry empty handed and returning with huge bags and boxes filled with household items, gift items, grapes, apples and groceries.

Alcohol, a big seller during the Yueltide season which showed a 19 per cent increase in its costs in November because of the higher taxes that were announced in the 2007 budget, remains a popular purchase.

"People haven't stopped buying alcohol; not even the higher prices have stopped them," said Ronnie Seecharan who operates a mini mart in the central region of Couva.

"People are buying beers, rum, whisky...whatever there is, so at least sales on this have not been affected," said Seecharan.

business@gleanerjm.com