President Dr Irfaan Ali says Government has contained inflation to four per cent despite an 86 per cent surge in diesel prices this year, crediting tax relief, subsidies and farm support for shielding households from rising global costs.

Speaking at a press conference on Monday, Ali said the 12-month inflation rate stood at four per cent at the end of June and is projected to reach 4.3 per cent by the end of 2026, despite significant increases in international and domestic input costs.

"When you look at the prices of refined fuel, diesel, I think 86 per cent increase from the beginning of the year to now, that is a really, really effective management of our economy to contain inflation," Ali said.

He highlighted measures targeting agricultural production, including the reversal of a 220 per cent increase in drainage and irrigation fees and a 600 per cent increase in land rental fees, saving farmers approximately $1.4 billion annually. The removal of excise tax on fuel has also reduced costs for farmers and consumers.

Government has restored zero-rated VAT on basic food items, including flour, bread, oats, crackers, biscuits and cooking oil, while investing in drainage and irrigation infrastructure and farm-to-market roads.

Ali said efforts are also being made to close the gap between wholesale and retail prices, including through expanded farmers' markets and direct produce sales. He pointed to recent reductions in chicken and egg prices through the Guyana Marketing Corporation, saying chicken prices had been "slashed by half almost in all of the markets."

He also cited Government's subsidies to Guyana Power and Light, noting that rising costs for imported refined products have not been passed on to consumers.

According to Ali, the Government is investing in longer-term measures to lower production costs, including zero-interest, zero-collateral loans of up to $3 million, expanded controlled-environment agriculture, 100,000 acres of new arable land and a gas bottling plant, aimed at protecting household purchasing power and reducing exposure to global price shocks.