Food prices eating poor man’s pocket

The annual rate of inflation as measured by the percentage change in the average (All Items Index) for the period January-July 2004, over the same period January-July 2003, was 3.2 percent, representing an increase of four percent. That’s the latest information on the current status of inflation in TT according to the Central Statistical Office (CSO). Food and non-alcoholic beverage decreased from 121.7 in June 2004, to 121.1 in July 2004, showing a slight decrease of 0.5 percent. However, the decrease represented June and July only and showed steady increases for food and non-alcoholic beverages between January 2003, to June 2004.

The data for July 2004 compared with June 2004, showed increases in alcoholic beverages and tobacco, 0.1 percent; housing, water, electricity, gas and other fuels, 1.1; health, 0.1 percent; transport 2.1 percent; recreation and culture, 0.6 percent; hotels, cafes and restaurants, 0.4 percent and miscellaneous goods and services, 0.6 percent. General price decreases were noted in clothing and footwear at 0.5 percent, and furnishings, household equipment, routine maintenance of the house, at 0.3 percent. Economist, Dr Dhanayshar Mahabir, said a four to five percent rise in inflation is not too much to worry about, pointing out that the Central Bank tries to deal with inflation before it spirals out of control. He agreed that the overall rise in the price of food has been increasing at a fast rate, suggesting that Government consider “the most vulnerable people in society,” such as old age pensioners and those with disabilities in the upcoming 2004-2005 Budget.

“Those are the people who will be most affected by the rising cost of living because for them and the small amount of money they receive, the power of the dollar is falling,” he said. “Since TT imports the majority of its food, the rest of the population will feel the burden of the import taxes and duties imposed on the goods,” he said. Consumer Affairs Minister, Danny Montano said it was now up to the Ministry of Finance or the Legal Affairs Ministry to deal with the issue of rising food prices, saying he’s tried all he could to alleviate the situation. Montano told Sunday Newsday last week that his Ministry made several recommendations and hopes that the 2004-2005 Budget will reflect some ease for consumers. Last February 6, National Flour Mills (NFM) said it would be increasing the price of flour by six percent, explaining that the cost of wheat had been increasing on the world market, in some cases by as much as 30 percent.  Minister Montano has been unsuccessful in influencing NFM to reduce the price of flour and rice.

However, he was able to influence the Bakers’Association to arrive at bread prices which reflected adequate adjustments according to the Fair Trading Monopolies Bill. Within recent times, powdered milk rose by 12 percent, rice by 25 to 32 percent and cheese by 17 percent. Data from the Ministry of Legal and Consumer Affairs showed price rises for wholesale units in condensed milk — 6.8 percent, 10.5 percent increase in sardines, 6.7 percent increase in split peas, 12.5 percent increase in eggs, a whopping 23.5 percent increase for soya oil, 8.7 percent increase for pig tails, 6.2 percent increase for flora butter. Poultry, despite threats to increase prices remained constant. Heavy floods earlier this month triggered the price of some vegetables to rise, tomatoes having had one of the highest increases, moving from $8 per pound to $10 for medium and $12 for large tomatoes.

Maxi-taxi fares to go up again

President of the Route 2 Maxi-Taxi association, Victor George, said the price of maxi-taxi fares would most likely go up again by the end of the year. The return trip from Port-of-Spain to Arima and ‘any part thereof’, is currently a flat fare of $5. George said he is not sure by how much the fare would increase, but there “will definitely” be an increase in the fare by the end of December. He lamented that the price of purchasing a maxi-taxi, plus maintaining it, in comparison with the rising cost of living, was becoming onerous on the owners and drivers. “People have to understand that the drivers have families to maintain, in addition to their vehicles and this is very costly,” said George. An increase in the price of fuel last November had maxi and taxi drivers all over the country threatening to hike their fares once again. “We can no longer wait for a rise in the price of gas or fuel for us to increase our fares,” he added.

Expired law makes it easier to raise rents

A few years ago, a renter could have had a one bedroom, unfurnished apartment for $500 and up. Now, a one bedroom apartment, furnished or unfurnished, could cost as much as $1,000 to $1,500 and in some cases as much as $3,000. Newsday’s columnist, Marion O’Callaghan in a recent Newsday commentary, pointed out, “If you could get a teeny weeny apartment for $3,000 now, you’re fortunate.” Peter Wharton, Chairman of the Rent Assessment Board, said the Rent Registration Act, Chapter 59:50 had expired in February 2002, making it easier for landlords to abuse their power over a tenant. The Act has not been re-enacted since it needs a two-thirds majority. He noted that if the law was re-enacted, the Rent Assessment Board would be  able to monitor rising rents, pointing out that the Act helped to protect tenants. Wharton said the rising cost of living was also a contributing factor in rising rents.