Senators Tackle Soaring Cost of Living in First of Two Marathon Hearings
A marathon hearing Monday before the Senate’s Committee of the Whole laid bare the complex and interwoven factors driving the territory’s sharply rising cost of living, underscoring the urgent need for comprehensive solutions. Testimonies from government officials, academics, and business leaders, coupled with pointed questions from senators, painted a stark picture of the economic pressures impacting every facet of life in the USVI.
2025-03-04 19:42:53 - VI News Staff
Licensing and Consumer Affairs Commissioner H. Nathalie Hodge directly addressed the territory’s heavy reliance on imported goods. “This is further compounded by limited wholesale competition, resulting in higher retail markups and reduced consumer choice,” she warned, highlighting the impact of high shipping costs, import duties, and freight surcharges on everyday prices. Adding significantly to the burden are the high costs of utilities, particularly from the Virgin Islands Water and Power Authority, which, as Hodge noted, “significantly impacts businesses’ operational costs and are ultimately passed onto consumers.” This already challenging situation is exacerbated by global inflation, ongoing supply chain disruptions, and volatile fuel prices.
The DLCA, Hodge explained, is actively implementing several strategies to address these concerns. These include a monthly “Shopping Basket” report providing real-time price comparisons, rigorous enforcement of consumer protection laws, initiatives to diversify the local economy and foster local food production, and a comprehensive cost-of-living study currently underway. The agency recommended the creation of a Consumer Price Monitoring Dashboard and the implementation of policies designed to both boost market competition and support local production. However, Hodge emphasized the need for a collaborative approach, declaring that “tackling this issue requires a collaborative effort involving all levels of government and every individual consumer.”