2021 Mid-Year Report: Inflation, rising food prices expected to shrink by end of year – Finance Ministry

The inflation and hike in prices for agricultural produce and other commodities, which were exacerbated by the global effects of the COVID-19 pandemic and the nationwide flooding Guyana endured, are likely to ease by the end of the year.
This is according to the Finance Ministry’s 2021 Mid-Year Report, for which the Ministry released a statement on Wednesday. According to the report, consumer prices increased by 5.6 per cent at the end of the first half of 2021.
“This was largely driven by increased food prices, as a result of the inclement weather and shortages experienced following the flood. Further, the Report indicated that the bottlenecks in the global supply chain add some measure of imported inflationary pressures,” the Ministry said.

“However, the Report underscores that the price increases are ‘transitory’ and are unlikely to have lasting long-term impact on inflation’,” the Ministry further said, adding that inflation is now projected to amount to 3.8 per cent for the full year.
Guyana Times had reported on the increase in prices for vegetables at several markets across Region Six (East Berbice-Corentyne) earlier this year, thus severely impacting the retail prices in Georgetown.
Between May and June this year, heavy rains resulted in widespread flooding across the country, affecting thousands of households. Many buildings and vehicles were submerged, with crops, livestock, and health adversely affected.
It has been noted that the rainfall experienced in May alone was recorded as the second highest level of rainfall across the country in the last 40 years. All 10 administrative regions in Guyana experienced varied levels of flooding, prompting Government to roll out immediate responses such as evacuation of those most at risk and flood assistance.
Following extensive fieldwork, President Dr Irfaan Ali had announced in a national address that $7.8 billion in flood relief assistance would be provided for citizens and farmers who were affected in all 10 administrative regions by the rains and flooding that beset Guyana earlier this year
Approximately 52,000 households were affected in categories of homestead farmers, kitchen gardens, and households exclusive of farms/gardens. In these categories, the Head of State noted farmers within the context of a homestead will receive $100,000 each, those with kitchen gardens will receive $50,000 each, and households excluding homestead and kitchen gardens will receive 50,000 each.
The President explained that the combined assistance to homestead farmers, kitchen gardens and households for these categories would be in excess of $3.5 billion. He acknowledged that while some large-scale farmers were severely affected, especially in the rice and poultry sectors, the assistance grant would not exceed $10 million for individual farmers.
With regard to the rice sector, where 50,000 acres of farmland and 2000 farmers were directly affected, President Ali announced that farmers with harvest-ready rice that was destroyed would receive $80,000 per acre and for rice sowed and lost in the autumn crop, farmers would receive $65,000 per acre.
For land that was completely prepared but was not sowed, $45,000 per acre would be given to farmers. In addition to this support, 60,000 bags of seed paddy will be made available. It was announced that the combined assistance in these four categories would be in excess of $3.2 billion. (G3)