Inflation is Here

Inflation is Here

It is important to give the public some background to the factors that drive our costs of goods.

Bermuda has two supply ships. One ship comes out of Florida. And, the other ship comes out of New Jersey. That
means, all of the goods that supply our island come out of the United States or must transit through the United States.

As the price for fuel for ships goes up globally that cost has a negative impact on shipping prices.

Further, the Bermuda Dollar is pegged 1:1 with the US Dollar. This means the economic forces that impact the value of that currency impacts the value of our currency as well.

As all of our goods come from the United States and because our Dollar is pegged 1:1 with their Dollar, it means we’re impacted whenever there is inflation in the United States.

So, goods - from fruits to bread to furniture to building supplies - all become more expensive here in Bermuda.

One of the roots of these problems is the global supply chain challenges that impact getting the supplies to the ships that supply our island. When the US gets a cold, we catch it too.

In his speech to the PLP Delegates Conference last week, the Premier noted the following: “In order to overcome the economic pain and anxiety brought on by this pandemic and to bring about positive, transformational change in our country it will require difficult choices. It will require a change in how we do things, hard work to execute that change, and it will require everyone to get involved in making the necessary changes a reality. Sharing ideas, and being involved in the discussions and work of executing those ideas is the only way for us to create the change that we desire and the Bermuda that we wish to live in.”

Indeed, the next few years are going to be tough. The recovery from the pandemic which harmed our fiscal house is not going to be easy.

It is going to be doubly difficult when inflation is thrown into the mix.
The next few years we’re going to have to tighten our belts.
It means that we must no longer engage in reckless deals like the airport and Morgan’s Point that cost us hundreds of millions of dollars. It also means that we must not give away status, but, instead provide non-status opportunities
for non Bermudians who choose to invest here and spend money here.

As importantly, it means we must cultivate and support our existing sectors and do whatever it takes to grow new sectors including promoting the opportunities in NE Hamilton and through FinTech.

We have a plan to grow Bermuda out of this crisis. But, it’s not going to happen overnight. We must all do our part, tighten our belts and together, we will make it through these tough times.

MP Crystal Caesar
Constituency 31 - Southampton West Central