Economy / Barbados
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Inflation Could Weigh On Rating
July 2008 | Risk SummarySorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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Growing concerns about rising living costs in Barbados may weigh on the island's short-term political risk rating in the near term. For the time being, official data is only available as far as December, when inflation reached 4.7% y-o-y. With fuel and food prices firmly on the rise across much of the region, we caution that Barbados may be undergoing a deterioration in its social stability category. Indeed, we estimate that a marked increase in retail price inflation may see the island's social stability rating drop from 80.0 to 75.0, which would presage a downgrade of the overall short-term political