The Central Bank of Curaçao and Sint Maarten published research on how inflation affects households across income groups in Curaçao, finding that lower-income households experience higher effective inflation and a larger erosion of purchasing power than higher-income groups. Using consumer price index data and household spending information from the Central Bureau of Statistics Curaçao, the study calculated inflation rates for six income groups over 2017 to 2024. It shows lower-income households spend close to 60% of their budget on food, electricity and fuel, so price rises in these categories translate into inflation rates above the overall rate, while higher-income households face lower effective inflation. The bank links this regressive pattern to amplified inequality and reduced living standards during periods of sharp price increases. The release points to targeted policy responses during external shocks, arguing that direct support should focus on low-income households rather than being applied broadly. It also highlights longer-term measures to reduce exposure to imported food and energy prices, including investment in local agriculture and renewable energy.
Central Bank of Sint Maarten & Curacao 2025-10-21
Central Bank of Curaçao and Sint Maarten study finds inflation is regressive in Curaçao and hits low-income households hardest
Research by the Central Bank of Curaçao and Sint Maarten shows lower-income households in Curaçao experience higher effective inflation and purchasing power erosion than wealthier groups. This is due to disproportionate spending on food, electricity, and fuel. The study suggests targeted policy support during external shocks and recommends long-term strategies to reduce reliance on imported food and energy through local agriculture and renewable energy investments.