The Caribbean nation of Antigua and Barbuda has achieved a remarkable economic milestone, recording its most significant inflation decline since the COVID-19 pandemic era. Prime Minister Gaston Browne revealed during Thursday’s 2026 national budget presentation that consumer prices increased by a mere 1.4 percent on average during the January-August 2025 period.
This development marks a dramatic reversal from 2022’s peak inflation of nearly 10 percent, when global supply chain constraints and soaring fuel and food costs created substantial economic pressure. In a particularly noteworthy shift, September 2025 witnessed an overall price decrease of 1 percent—the first instance of deflation the nation has experienced in years.
Prime Minister Browne attributed this positive trend to multiple factors, including improved global supply conditions, reduced freight expenses, and strategic government interventions designed to stabilize living costs. Key measures include sustained fuel and electricity subsidies, along with the government’s suspension of the 42 percent Common External Tariff on specific food imports.
These policy decisions are anticipated to translate into tangible benefits for consumers, with Browne projecting “cheaper supermarket prices in the coming weeks” as importers obtain essential goods at reduced costs. The Prime Minister issued a stern warning to retailers against absorbing these duty savings, emphasizing that price reductions must be passed through to consumers.
The administration’s collaboration with Guyana to import lower-cost staple goods is expected to further reinforce price stability into 2026. Browne confirmed the continuation of cost-of-living support programs, including expanded food vouchers, ongoing LPG subsidies, and assistance for approximately 7,000 pensioners and over 1,600 vulnerable households.
Parliamentary budget discussions are scheduled to continue next week, where further economic measures will be examined.