Bahamas: cost of living

Is there VAT on food in the Bahamas?

VAT on unprepared food in the Bahamas fell to zero on 1 April 2026, according to the Prime Minister's remarks on day one of zero VAT, published by the Office of the Prime Minister. He also said import duties had been removed on dozens of food categories.

The zero rate covers unprepared groceries, not restaurant meals or other goods, which still carry VAT. VAT remains the largest source of government revenue, bringing in $1.65 billion in 2025/26, according to the fiscal outturn statement.

Official sources: Office of the Prime Minister: remarks on day one of zero VAT on food · Office of the Prime Minister: fiscal outturn 2025/26

Why are prices rising in the Bahamas?

The Central Bank of The Bahamas said average inflation of 2.7% in the 12 months to June 2026 came from higher costs for imported fuel and other goods and services, in its Monthly Economic and Financial Developments for August 2026. Housing, water, gas, electricity and other fuels rose 3.1%, transport 2.0% and health care 3.6%.

The Bahamas imports all of its fuel and much of its food, the Prime Minister noted in his fiscal outturn statement, so world prices pass through quickly. The Central Bank expects inflation pressure to stay high because of higher fuel and import prices linked to tensions in the Middle East.

Official sources: Central Bank of The Bahamas: Monthly Economic and Financial Developments, August 2026 (PDF) · Office of the Prime Minister: fiscal outturn for 2025/26

How fast are prices rising in the Bahamas?

In 2025, consumer price inflation in the Bahamas was 1.1%, according to the IMF. Its high point since 2005 was 2022, at 5.6%; its low point was 2016, at -0.3%. It is 20th highest of 29 in Latin America & Caribbean, where the median is 2.1%. World rank, highest first: 128th of 165.

How much do households in the Bahamas spend per person?

According to the World Bank, household consumption per person in the Bahamas was $20,957 in 2024. Since 2005 it has ranged from $15,189 (2020) to $24,784 (2006). Across Latin America & Caribbean the middle value was $4,454, and the Bahamas placed 1st highest of 20. Worldwide: 21st of 153.

How many people in the Bahamas go hungry?

In 2022, moderate or severe food insecurity in the Bahamas was 17.2%, according to the FAO. Across Latin America & Caribbean the middle value was 29.1%, and the Bahamas placed 23rd highest of 26. World rank, highest first: 89th of 147.