General Macroeconomic Indicators

What do we mean by the cost of living?

The cost of living is determined on the basis of relative changes in the average price of consumer goods in an economy. Often referred to as the cost of living index, the Retail Price Index (RPI) tracks price developments for a specified basket of consumer goods, which one would expect to be included in the normal expenditure of the average household. Each good is weighted according to its overall allocation in the average household budget.

For The Bahamas, this goods basket includes: food and beverages, clothing and footwear, housing, furniture and household operations, medical care and health, transportation and communication, recreation and entertainment services, education and other miscellaneous goods and services. The goods receiving the highest weights in the consumption basket of the average Bahamian household are housing, followed by the transportation and communication and food and beverage categories respectively.

  1. What is the Gross Domestic Product (GDP)?
  2. How has The Bahamas' GDP changed over the past few years?
  3. How important is the contribution of the banking sector to the overall Bahamian economy?
  4. What do we mean by the cost of living?
  5. What is the current rate of inflation?

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