President Irfaan Ali has attributed part of Guyana’s high cost of living to changing spending and eating patterns, telling a press conference last Tuesday that increased supermarket shopping, restaurant visits and reduced home cooking are contributing to household expenses.
The comments came in response to a question about the continued high cost of living, at a time when Guyana is earning unprecedented revenues from its expanding oil industry.
Ali said changing consumer behaviour is an issue that Government must address, arguing that more people are purchasing food from supermarkets rather than traditional markets.
“But we have also changed our eating pattern in the country. And that is something we have to address.”
He said supermarket prices can carry higher margins because of the costs associated with operating those businesses.
“More persons today are shopping in a supermarket than were shopping in a supermarket four years ago. If you look at the margins in the supermarket, you will see that the margins are far different from the margins in the normal market.”
Ali said products such as sweet potatoes, cassava and plantains that were traditionally purchased at markets are increasingly being bought at supermarkets, where overhead costs can be higher.
“The same person who was buying sweet potato and cassava and plantain in the market are now buying it in the supermarket. And they have a whole different margin of profit because, of course, they have higher overheads in the AC and shopping in that environment, sometimes rental and so on.”
The President also pointed to increased restaurant spending and less cooking at home.
“So people are eating out more than they were eating out four years ago. The average family is visiting a restaurant more than they were doing four years ago.”
Ali’s remarks come against the backdrop of a dramatic increase in Guyana’s national wealth since commercial oil production began in December 2019. Based on Bank of Guyana figures, Guyana’s Natural Resource Fund had received approximately US$9.73 billion in petroleum revenues by April 2026, comprising profit oil, royalties and signature bonuses.
The surge in oil revenues has not eliminated concerns over poverty and household affordability. An Inter-American Development Bank 2025 Report has been cited as estimating that about 58 per cent of Guyana’s population lives in poverty, while 32 per cent faces abject poverty. The figures are based on underlying survey data from 2021 and have been disputed by the Government as not reflecting current poverty levels.
Local analysts have also questioned whether the reported poverty figures capture the full extent of hardship, citing weaknesses in data collection and concerns that some citizens may be reluctant to disclose their economic circumstances because of fear of political repercussions. Those concerns have not been independently established as official evidence.
The contrast between the country’s oil wealth and household pressures has therefore become an increasingly important part of the cost-of-living debate.
Ali did acknowledge that retailer mark-ups are contributing to the prices consumers pay, particularly the difference between what farmers receive and what their produce costs further along the supply chain.
“And then, of course, we have the issue of the exorbitant profit lines that the retailers are charging, or the add-on, if you want to put it that way.”
He used plantains to illustrate the disparity.
“So the farmers, when you go to the wholesale market, the farmers are saying, we’re selling plantains at X dollar. But when it gets to the market, it’s 10X.”
The President said Government may respond by establishing farmers’ markets as a permanent part of the country’s food distribution system, allowing farmers to sell directly to consumers.
“We may need to look at the creation of farmers markets across the country as a permanent part of our buying ecosystem so that farmers have direct access to the market.”
The Government has previously pointed to tax reductions, subsidies and other interventions as measures intended to ease the cost of living. But Ali’s latest comments put consumer behaviour alongside retailer margins and supply-chain inefficiencies among the factors Government says must be addressed.
The comments also sharpen the debate over the relationship between Guyana’s extraordinary economic growth and the financial reality facing ordinary households. With billions of dollars in petroleum revenues flowing into the country, the central question remains whether that unprecedented national wealth is translating into stronger purchasing power and affordable necessities for Guyanese.
With families facing high food, housing, transportation and other household costs, the issue is ultimately not only where they shop or whether they eat at restaurants, but whether their incomes and living standards are keeping pace with the wealth being generated by the economy.
