CB Governor concerned about inflation

He raised the issue at the Annual General Meeting of the TT Chamber of Commerce at Crowne Plaza Wednesday.

He attributed the rise from 3.8 percent in 2003 to seven percent in 2005 to “phenomenal” increase in food prices.

He noted that food prices increased from 12 percent during the period 1995-2000 to 14 percent during 2001 to 2004 and to a whopping 24 percent in 2005. The prices of fruits and vegetable, he said, were significantly increased due to severe flooding in 2004 and 2005. He highlighted that the increase in food prices was as a result of the limited competition among players involved.

“It may have to do with the oligopolistic structure of the distribution sector which facilitates increasing profit margins,” Williams stated.