For the first time in almost five years, Antigua and Barbuda has recorded a fall in consumer prices. Official statistics show that the inflation rate dropped by 1.2 percent in the 12 months ending April 2025, marking the country’s first deflation since November 2020. The main driver of this decline was a steep fall in transportation costs, with airline fares to the United Kingdom plunging from around EC $5,984 to EC $2,920 on average—a drop of more than 40 percent.

The transport category alone registered a 41.8 percent decline, highlighting how changes in international travel costs can directly impact the local economy. Prices also dropped in several household-related areas. For example, appliances fell by 5.5 percent, carpets by 10.2 percent, glassware by 9.2 percent, and garden tools by 3.4 percent.

Food prices, which often hit households the hardest, also showed some relief. Overall food costs fell by 0.9 percent, with vegetables down by 6.8 percent, oils and fats by 7.2 percent, and potatoes showing one of the steepest declines at 13.2 percent. For many families, this easing could mean a small but welcome reduction in grocery bills.

The report also noted that core inflation, which strips out volatile food and energy prices, fell by 1.9 percent. This means the price decline was broad-based, affecting categories like furnishings, recreation, and alcoholic beverages. Economists, however, warn that while falling prices can provide short-term relief, extended deflation can slow down economic growth if businesses reduce investment due to shrinking revenues.

This development will be closely watched by policymakers, as it signals both opportunities and risks for the economy. For households, it offers some breathing space in the cost of living. For government planners, it raises questions about how to balance price stability with economic growth in the months ahead.