President Dr. Irfaan Ali says the government is prepared to introduce additional cost-of-living interventions in the coming months if global economic pressures continue to drive up the cost of food, energy and other essential goods.
Speaking during a recent interview with journalist Marcel Fowler on Guyana’s 2026 Mid-Year Report, the Head of State said the administration would continue assessing international and domestic conditions and respond where further assistance becomes necessary.
“We are going to continue to look at interventions that may become necessary, given the global economic condition in the coming months ahead of us,” the President said.
The comments come as the 2026 Mid-Year Report shows consumer prices rose by 4.4 per cent between December 2025 and June 2026, driven largely by food costs. Food prices increased by 6.7 per cent during the six-month period, while the 12-month inflation rate stood at 4 per cent in June. The government has revised its full-year inflation projection to 4.3 per cent.
President Ali said Guyana remains exposed to international price shocks because the country still imports a significant share of the products it consumes, including refined petroleum products, agricultural machinery and other inputs.
He pointed to global conflicts, supply-chain disruptions, increased transportation and insurance costs, as well as droughts and flooding affecting agricultural production internationally.
“We are not spared from that,” Ali said, noting that higher transportation, energy and input costs eventually reach the Guyanese economy.
According to the President, the government has so far sought to cushion households by absorbing some of those increases rather than allowing the full cost to be transferred to consumers.
He said Guyana Power and Light Inc. has faced significantly higher fuel costs during the year, while Guyana Water Inc., whose operations also depend heavily on energy, is experiencing similar pressures.
“The government continues to subsidise and absorb these shocks,” Ali said.
He added that increased oil revenues must therefore be considered alongside growing expenditure on subsidies for electricity, water and other programmes intended to shield households from price increases.
The Mid-Year Report similarly states that the government maintained a zero per cent excise tax on petroleum products and kept electricity tariffs stable as part of its response to rising international fuel prices.
Ali said the additional cost being absorbed for GPL alone could amount to tens of billions of dollars beyond what was initially budgeted.
“That will be tens of billions of dollars that was not budgeted for, that the government will be absorbing additionally in this budget on behalf of the Guyanese population,” he said.
He said increased operating costs at GWI would similarly not be passed directly to customers.
Ali also pointed to the government’s decision to maintain zero excise tax on fuel, saying the foregone revenue has amounted to hundreds of billions of dollars over several years.
“If we did not do that, then that cost would have been passed on to the consumer,” he said.
Alongside those subsidies, the President said the government must continue financing existing programmes, including old-age pensions, the Because We Care cash grant, transportation assistance for schoolchildren, salary increases, healthcare investments, drainage and irrigation works and support for farmers and fisherfolk.
Food affordability is expected to remain one of the areas receiving attention during the second half of the year.
The Mid-Year Report attributed much of the increase in consumer prices during the first half to food, with vegetables and vegetable products accounting for a significant portion of the rise. Difficult weather, imported inflation, increased demand and retail mark-ups were among the factors identified.
Ali said the government intends to expand farmers’ markets across the country to reduce the gap between wholesale and retail prices and create more direct links between farmers and consumers.
The administration is also seeking to increase domestic production of onions, potatoes, red beans, black-eyed peas, soybeans, poultry and other products that Guyana currently imports or does not produce in sufficient quantities.
Ali said increasing production alone would not be sufficient, arguing that storage capacity is also needed to create a buffer that can be used when shortages emerge.
“We have to ensure that we always have a buffer,” he said, pointing to poultry as one example where excess production could be stored to help stabilise both supply and prices.
The government has separately begun rolling out farmers’ market initiatives as part of its effort to narrow the difference between farm-gate and retail prices.
Ali said the government is also examining ways to increase the supply of locally produced beef, including assistance for hinterland farmers to transport livestock to processing facilities.
While Guyana’s economy grew by an estimated 33.3 per cent during the first half of 2026 and the non-oil economy expanded by 10.1 per cent, Ali said rapid growth does not insulate the country from international inflationary pressures. The government’s full-year growth projection is now 20.8 per cent, with non-oil growth forecast at 10.2 per cent.
The President said the administration will continue reviewing its fiscal measures as circumstances evolve, particularly because many of the tools traditionally available to reduce fuel costs have already been deployed.
He said the government must simultaneously protect households from immediate shocks while continuing investments intended to reduce costs over the longer term.
For the remainder of 2026, Ali said the government would focus on expanding agriculture, tourism and financial services, increasing productivity and finding additional ways to stabilise food prices, particularly for imported goods.
He said global conditions are not expected to improve significantly in the short term, making continued monitoring and possible further intervention necessary.
