Prices on Bonaire have risen by more than 35 percent since 2011. Prices increased particularly sharply in the period 2020–2025, from the coronavirus crisis onwards. At the same time, incomes and social benefits on the island have gained considerably in value. On average, all households have seen their purchasing power improve since 2011. Even so, many low-income households still fall short each month — especially those dependent on the private housing market. If incomes and social benefits no longer keep pace with price increases, a large group of households risks losing purchasing power.

These are the findings of a study carried out by Economic Bureau Amsterdam on behalf of Fundashon Tienda pa Konsumidó Bonairiano (FTPKB). The study examined price developments on Bonaire and their consequences for low incomes on the island.

The general price level on Bonaire has risen by 35 percent. There are, however, considerable differences between sectors: basic necessities such as food, housing and healthcare have risen in price more steeply than the general price level. Other sectors, such as communications, have in fact become considerably cheaper. Because low-income households spend relatively more on basic necessities, these price increases hit them relatively hard.

At the same time, the government has initiated multiple policies to strengthen income security on Bonaire. The minimum wage, welfare benefits (onderstand) and the old-age pension (AOV) have all been raised, and child support (kinderbijslag) was introduced in the Caribbean Netherlands. Partly as a result of these measures, purchasing power has risen on average for all Bonaireans.

Despite this increase in purchasing power, low-income households still fall short each month relative to Nibud’s minimum reference budgets. Households that depend on the expensive private rental market in particular can fall short by up to several hundred dollars a month, depending on the type of household.

The steep price increases on the island are partly inherent to Bonaire as a small island economy and cannot be countered through policy. Financial relief can, however, be offered to the households that need it most. The government could, for instance, work to help low-income households with the costs of energy, housing and transport. The introduction of public transport on the islands could also provide financial relief for households. In the longer term, competition policy could contribute to a healthier competitive climate.