Rising food prices will hurt Budget - Davies
published:
Friday | February 22, 2008
Omar Davies - File
The Opposition People's National Party (PNP) has again blasted the Government for its handling of the continuing increase in basic food prices.
Opposition Spokesman on Finance Dr Omar Davies says the increases have impacted consumers negatively and will have serious implications and consequences for the 2008-2009 Budget.
According to Dr Davies, the increases will also have a negative impact on domestic interest rates, the foreign exchange market, and the prospect for reaching a speedy agreement on a new memorandum of understanding.
He says most Jamaican consumers currently find it an agonising experience to buy basic food items and the $500 million subsidy implemented by the Government has had little impact.
Eight per cent increase
The former finance minister says his present concern comes against the background of the recent release of the Consumer Price Index figures by STATIN for January 2008.
Dr Davies notes that the overall prices from November to January have increased by eight per cent.
This has contributed to the current overall increase of 16.4 per cent for the first 10 months of the fiscal year April to January.
He says if this trend is allowed to continue without decisive intervention, then with two months to go in the fiscal year, the Jamaican consumer might face the unfortunate possibility of paying 20 per cent more for all goods.
According to Dr Davies, it has become clear to all that the Government does not have a handle on the situation.
He is demanding that the Government quickly develop and present a coherent programme to temper this rapid movement in prices, which, he says, if not curtailed soon, threatens to undermine Jamaica's economic and social stability.
