The Ministry of the Cabinet Office recently released Bermuda’s Consumer Price Index for the period ending August 2021, which surprisingly indicates an increase of only 1.6%. The OBA questions how this is possible and how were these figures calculated for the following reasons:
In the United States, The Brookings institute and the US Labor Statistics Department confirmed that their rate of inflation for the year ending October 31, 2021, came in at 6.2%.
Across the Atlantic, in the UK, The Independent newspaper indicated that their inflation rate for 2021 was at its highest in a decade at 4.2% amid fears over Covid recovery. This figure was supported by CNBC News who reaffirmed that the U.K.’s Consumer Prices Index rose by 4.2% in the 12 months to October 2021.
As for the Euro Zone, their inflation rose to 4.1% for October, hitting a new 13-year high according to the Euro Department of Statistics and CNB
The figures presented by the Cabinet Office to the Bermuda public just don’t add up.
As Bermuda is totally dependent on imported goods, how can this government either unintentionally or intentionally misrepresent or miscalculate Bermuda’s inflation figure to the people of Bermuda to be only 1.6%?
It is well documented that Bermuda is interdependent and interconnected to our supply chain countries. These supply chain countries show vastly different inflation rates to that of Bermuda for the 12-month period ending October 31, 2021
This disparity is further exacerbated when shipping and local profit margins are factored in.
Based on this information, Bermudians will actually have less purchasing power, and less value for their hard-earned dollars. Unfortunately, Bermuda’s real purchasing power will decrease as the price for a basket of essential goods increased by at least 6%, not 1.6%
As painful as it is, the increase in Bermuda’s already expensive cost of living makes it extremely difficult for middle-class, blue-collar workers, the under employed and the unemployed to survive.
The Cabinet Office must do a better job and provide a clearer picture of the real reduction of our spending power. Bermuda deserves it.