Belize has experienced a significant increase in consumer prices, with a rise of 2.6% reported in the final quarter of 2024. This information comes from the latest report released by the Statistical Institute of Belize (SIB) on January 30, 2025. Rising costs in essential categories such as food and housing primarily drove the increase in the inflation rate.
The SIB noted that inflation was exceptionally high in the Food and Non-Alcoholic Beverages category, which saw a 5% inflation rate. Price hikes were especially notable for fruits and vegetables, with items like limes and oranges experiencing surges of over 20%. Additionally, staples such as bread and tortillas increased by 3%, while non-alcoholic beverages rose by 7.8%, mainly due to higher prices for juices and soft drinks.
Housing costs have significantly contributed to the overall inflation rate, with home rentals increasing by 3% and liquefied petroleum gas (LPG) prices rising by 8.5%. These factors create a challenging economic environment for consumers, particularly in larger areas where the cost of living has consistently increased.
Inflation rates vary across the country. For example, Belmopan recorded the highest inflation rate at 4.9%, driven by steep prices of food, clothing, and personal care items. In contrast, Independence Village experienced minimal inflation at just 0.2%, reflecting localized economic conditions. Compared to previous months, this December figure follows a trend of rising prices throughout 2024, where the national inflation rate averaged around 3.3% for the year. San Pedro Town had an inflation rate increase of 3.6%.
Belize’s inflation rates have been relatively low historically. From 1991 to 2024, the average was 1.58%, with peaks reaching as high as 9.6% in August 2008 and lows of -12.7% in March 2011.
Residents find it necessary to adjust their budgets, often choosing cheaper alternatives or cutting back on their consumption of certain goods. Transportation expenses related to importing goods to the island further impact the cost of living, making everyday essentials even more costly. Many locals are concerned that if these trends persist, their ability to afford necessities will be significantly compromised, further affecting their quality of life.
The findings from the Statistical Institute of Belize underscore the ongoing economic challenges households in Belize are experiencing due to rising costs for essential items. Projections suggest that inflation rates may stabilize around 2.0% by the end of the first quarter of 2025, with further declines expected to approximately 1.5% by 2026. In 2024, the national annual inflation rate was recorded at 3.3%, with almost all major Consumer Price Index (CPI) categories showing increases in consumer prices for the year.
Notably, the ‘Food and Non-Alcoholic Beverages’ category saw a significant rise of 5.6%, largely due to increased costs of fruits and vegetables, bread and bakery products, dairy products, meats, fruit and vegetable juices, and soft drinks throughout 2024. Additional notable increases were observed in ‘Restaurant and Accommodation Services’, which rose by 7.4% as restaurant prices climbed steadily over the year. Furthermore, the ‘Housing, Water, Electricity, Gas, and Other Fuels’ category experienced a 2.3% increase, reflecting higher home rental costs.
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