Barbados: cost of living

What is the inflation rate in Barbados?

Barbados' inflation rate, measured as a 12-month moving average, reached 1.4% in the first half of 2026, and prices in May 2026 were 2% higher than a year earlier, according to the Central Bank of Barbados' Review of Barbados' Economy: January to June 2026.

The moving average smooths out monthly swings, while the point-to-point rate shows the latest change. Higher prices for food, education, housing and utilities, and transport pushed inflation up. The Central Bank says government measures continued to cushion the pass-through of higher import costs.

Official sources: Central Bank of Barbados: Review of Barbados' Economy, January to June 2026

What is the VAT rate in Barbados?

The standard VAT rate in Barbados is 17.5%, according to the Barbados Revenue Authority's VAT rates page. Direct tourism accommodation services are charged 7.5%, telecommunications services 22%, and zero-rated items 0%.

Businesses must register for VAT once their annual taxable sales pass the threshold of $200,000 (about $16,667 a month), which has applied since 1 January 2016. Zero-rated goods carry no VAT but let the seller reclaim VAT on inputs, which is different from exempt supplies. Figures are in Barbados dollars.

Official sources: Barbados Revenue Authority: VAT rates

Why are fuel costs rising in Barbados?

Barbados' fuel imports rose by $127.1 million to $540.7 million in January to June 2026, almost the entire rise in goods imports, according to the Central Bank of Barbados' Review of Barbados' Economy: January to June 2026. The Bank links this to higher crude oil prices from March 2026 and higher shipping costs.

The Bank says government energy measures helped limit how much of the rise reached domestic energy prices. Air fares and fuel prices still added to transport costs, and point-to-point inflation reached 2% in May 2026. Figures are in Barbados dollars.

Official sources: Central Bank of Barbados: Review of Barbados' Economy, January to June 2026 (PDF)

How fast are prices rising in Barbados?

According to the IMF, consumer price inflation in Barbados was 0.8% in 2025. Its high point since 2005 was 2011, at 9.4%; its low point was 2015, at -1.1%. Across Latin America & Caribbean the middle value was 2.1%, and Barbados placed 23rd highest of 29. World rank, highest first: 137th of 165.

How many people in Barbados live on under $3 a day?

The latest figure from the World Bank, for 2016, is 1.7%. Across Latin America & Caribbean the middle value was 4.8%, and Barbados placed 13th highest of 15. Of 81 countries with 2016 data, 36th highest.

What share of Barbados lives below the poverty line?

The latest figure from the World Bank, for 2016, is 25.7%. Across Latin America & Caribbean the middle value was 25.3%, and Barbados placed 6th highest of 12. World rank, highest first: 13th of 56.

How unequal are incomes in Barbados?

In 2016, the Gini index in Barbados was 34.1, according to the World Bank. It is 15th highest of 15 in Latin America & Caribbean, where the median is 45.7. World rank, highest first: 45th of 81.

What is food insecurity in Barbados?

31.1%: that is moderate or severe food insecurity in Barbados for 2022, according to the FAO. Latin America & Caribbean median: 29.1%; Barbados is 12th highest of 26. Of 147 countries with 2022 data, 61st highest.