Inflation

Note: this is a blog post I wrote about over a month ago when the prices were spiralling upward. Things have settled down and are somewhere in between the prices listed below but I've been gone for a bit and with fluctuations I'm not sure the current prices. 

Life here is getting more expensive all the time. Although there has been a blackmarket exchange rate for as long as I can remember, the difference between the bank rate and the black market rate has widened drastically in the last few months. As a result the price of goods is rising quickly. Here are a few examples. All prices are in USD and are in the exchange that we can get at the bank.

Item	cost in November	cost in May
small bucket of potatoes (fills a plastic grocery bag)	$7	$14
green pepper	$0.28 for a medium one	$0.28 for a very small one
carrots	$0.28 for one	same
onions	$1.41 for medium pile	$2.82 for medium pile
garlic	$0.28 for one	$0.42 for one
meat - mince	$8.47 for 1kg	$20 for 1kg
flour	$3.38 for 2kg	$7.34 for 2kg
20L of drinking water	$3.39	$7.34
1 egg	$0.28	$0.56

For us its frustrating to see the costs rise but not nearly as frustrating as for the local people who are already are living day to day and have to pay the price that things are going at for the day. For us, I tend to buy a weeks worth of food at a time and can afford to wait a day or two if the prices are high in hopes that the next day the price is less. Many others don't have that option.

One thing we never really bought much of is water since we have a filter and it has given us more than we need when we first arrived here. recently it has gotten slower and thus we have been buying water periodially since we drink more than the filter gives out. Last week those prices doubled and I'm not willing to pay that much for drinking water so instead I've been boiling it to kill bacteria and running it through a cloth to prevent guinea worm. This doesn't cost me anything but some time since the generator runs on its schedule regardless of my water needs and we use electric hotplates to cook. I've chatted with our local staff about doing this to save money but for them there still are expenses because they have to buy charcoal so they can boil the water which reduces any savings (if there is any savings after buying the charcoal).

Gasoline is the one thing that hasn't changed its price since we got here. Its still $1.69 per liter since there are gov't price controls on it. One might think this is a good thing but with price controls come shortages and finding fuel now is very difficult. At one station a few weeks ago I counted 40 cars lined up before the line disappeared around the corner. There were also a mass of motorcycles bunched together at the station and more scattered throughout the line. The only other gas station that was open had similar lineups. The rest were closed down because there was no fuel. Now I don't see as many lineups however the vast majority of gas stations have tarps over the pumps or the area roped off signalling they don't have fuel.

Life here is one big economics lesson that brings many questions and struggles. One thing we don't want to do is use the black market as its illegal but it also leaves other questions on how we can function in this environment in a stewardly way and how can we help others who are struggling with the rising costs. Do I barter for a good price (potatoes for example were going for $20 but I was able to get them for $14 one day) or do I let it go and pay more for the item knowing that those selling the products are most likely in a more difficult situation. On one level I want to let it go because I know it will help them for the short term however if I pay more for the item than its worth I am encouraging the idea that they can charge certain people more which can be damaging in the long term.