The Falkland Islands inflation during the last decade, on average has been below 4% annually. This however does not mean the Falklands are not vulnerable to the volatility of world energy and food prices.
So 2022, with the Ukraine/Russia war going on, following on the global tepid post pandemic economic recovery plus freight difficulties, and specific consequences of Brexit regarding the Islands' trade with the European Union, can be expected to be a year of surprises.
However this does not prevent from pointing out that in just one month, March, neighboring Argentina suffered an inflation of 6,7% and 7,5% in the item Food, with half the population considered poor or below the poverty line.
This week the Argentine economic team is back in Washington for the annual IMF/World Bank assemblies but also to attempt a redrafting of some of the clauses of the understanding reached sometime in March following two years of negotiations with the Fund.
It is not a matter to take lightly since when Argentina faces extreme domestic difficulties, they tend to appeal to extreme measures and reactions. The 6,7% March inflation means 16,1% in the first quarter of the year and 55% in the last twelve months.
Likewise the 7,5% March foods' price if projected for the rest of the year could be reaching 130%, and if all the financial and price clamps are taken into account, and removed, (a several tiers market for the US dollar with a gap of 100%, controls on some 1,600 supermarket prices plus public utilities rates heavily subsidized), it is estimated the real twelve month inflation in Argentina could be above 340%.
In other words the current Argentine administration has managed in one month an inflation equivalent to two full years of inflation in the Falklands.
But as said above, Falklands are not an isolated case, and as of this month the price of diesel has gone up, and as the winter season approaches, both the Falkland Islands government and local charities are aware people could face financial hardship,
FIG reminds the community that help is available for those in need over the winter and encourages people to apply for its fuel allowance scheme in confidence. Chaplain Maurice Lake from the Seafarers Mission Chaplain indicated the food bank will continue fully operational and is well stocked. Allegedly those who knocked on the door so far have jumped from 16 last year to 45. But don't feel embarrassed says chaplain Lake, Don't go hungry, just ask.....