Government admits no inflation impact study as it defends cost of living measures 

By S.Browne. Updated 7:10 p.m., Thursday, July 2, 2026, Atlantic Standard Time (GMT-4).

The Government has confirmed that it has not conducted a formal assessment of how inflation is affecting low income households, even as it continues to defend a series of relief measures aimed at easing rising living costs.

Responding in Parliament on July 2, 2026, Prime Minister and Minister of Finance, Dr Godwin Friday, said the short answer was “no” when asked whether such an assessment had been carried out.

Dr Friday said the absence of a formal study did not mean the Government was unaware of the pressures facing households.

“We have not undertaken an assessment of inflation’s impact on low income households. But you don’t always need a temperature to know it’s hot,” he told the House.

Dr Friday said the Government remains “acutely aware and sensitive” to rising cost of living pressures.

He pointed to completed relief measures, including an increase in public assistance to $500 and monthly top ups for National Insurance Scheme minimum pensioners from March to September.

Dr Friday also confirmed that a VAT free shopping day was already implemented on December 19 last year.

The Government further confirmed that salary bonuses were paid to public servants, pensioners, and daily paid workers, including part time employees.

Dr Friday said, “The Government paid salary bonuses to all public servants and pensioners in daily paid, even part time daily paid workers.”

Fuel related relief measures were also outlined, including a 50 percent reduction in taxes on gasoline, diesel and low sulphur diesel.

He also noted that taxes on Liquefied Petroleum Gas (LPG) and diesel used by VINLEC were removed in full.

Dr Friday said domestic inflation remains relatively low at around 1 percent year to date, although he cautioned that price pressures are expected to rise due to global fuel market conditions.

“We are monitoring the situation and we will respond in a targeted manner to protect the most vulnerable in our society,” he said.

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