Prices for Food and Non-Alcoholic Beverages ("Food") have climbed by more than 34% between October 2020 and January 2025, and continues to be one of the strongest drivers of inflation, reports from the Statistical Institute of Belize inform.
Food is closely followed by "Restaurant and Accommodation" and "Transport," which includes fuel prices.
Year over year, the headline inflation (January 2024 to January 2025) shows overall prices climbed by more than 2 percent.
The latest report from the Statistical Institute of Belize (SIB) reveals that the Consumer Price Index (CPI) stood at 119.8 in January 2025, up from 117.3 in the same period last year. The rise in consumer prices was primarily fueled by increases in food costs, housing and utilities, and transportation expenses.
Within the food category, notable price hikes were recorded for fruits, cereals, and non-alcoholic beverages. Watermelon, grapefruit, pineapples, oranges, and limes saw some of the steepest increases, while cereals such as bread and tortillas also became more expensive. Non-alcoholic beverages rose by 7.6 percent, driven by higher prices for fruit juices, purified water, and soft drinks.
Housing costs, another major contributor to inflation, rose by 2.8 percent, largely due to increasing rental prices and the cost of liquefied petroleum gas (LPG), which climbed from $117.62 per 100-pound cylinder in January 2024 to $125.83 in January 2025. Meanwhile, transport inflation reached 2 percent, marking its first increase since August 2024. Higher costs for passenger services, international airfare, and vehicle parts were key factors, although fuel prices showed mixed trends, with premium gasoline increasing while diesel and regular gasoline declined slightly.
Inflation varied significantly by municipality, with Belmopan experiencing the highest inflation rate at 4.5 percent. The capital saw above-average increases in food, home rentals, household products, and transportation services.
The inflationary pressures in Belize are largely tied to external factors, particularly trends in the United States. Reports from Bloomberg and the Federal Reserve indicate that U.S. inflation is beginning to rise again, largely due to supply chain constraints, wage pressures, and planned tariffs. Input costs for manufacturers in the U.S. have surged, with the price of materials such as lumber and steel climbing to their highest levels since late 2022. Additionally, a resurgence in egg prices due to avian flu outbreaks, rising labor costs, and inflation expectations among consumers are fueling price hikes across multiple sectors.
The potential for higher U.S. inflation has implications for Belize. Given the country’s heavy reliance on imports, particularly for food and energy, rising costs in the U.S. could further push up prices locally. Businesses in the U.S. are already adjusting to expected cost increases, with some manufacturers raising prices in anticipation of new tariffs on imports. If these trade policies take effect, Belizean consumers may feel the effects in the coming months as the cost of imported goods rises.
Additionally, wage growth in the U.S. remains a key factor in inflation trends. Recent data indicates that wages for workers staying in their jobs have risen at the fastest pace in over two years, adding to business expenses that are likely to be passed on to consumers. This could contribute to continued upward pressure on food and transport costs in Belize, particularly as shipping and logistics costs respond to global inflationary pressures.
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