The NCFC government’s first year: Addressing a rising cost of living

The cost of living has long been a challenge for people living in the Cayman Islands, so it’s little surprise that it was a key target for the National Coalition for Caymanians government. Since the United States and Israel launched attacks on Iran on 28 February 2026, and Iran’s subsequent closure of the Strait of Hormuz, oil prices have increased significantly, adding to Cayman’s already-high cost of living.

Structural factors

One structural reason for the significant increase in living costs in recent years is that Cayman’s population has jumped in size. The latest data from the Economics and Statistics Office estimates there are more than 90,000 people living in Cayman, up from approximately 55,000 in 2010.

That fast population growth puts pressure on Cayman’s limited housing stock, driving up rents and house prices. The larger population has also strained Cayman’s trade infrastructure, such as ports and warehouses. That matters for a jurisdiction that imports more than 90% of the food it consumes.

Government efforts to reduce cost of living

The government’s Strategic Policy Statement, published in October 2025, laid out specific ways it aimed to lower the cost of living. It promised to establish “a framework for trade development, focused on reducing the cost of imports to help lower the cost of living”.

In April this year, the government approved the Advisory Trade Commission and the development of Trade Development Framework, with the first meeting of the commission taking place later that month. Yet it is far too soon for the initiative to have succeeded in reducing import costs.

In February, the Compass reported that the government is looking to reduce the duty on food imports. Most grocery items are subject to a duty between 17% and 22%, so any move here has the potential to reduce costs significantly. The final details of the changes haven’t been revealed, yet Home Affairs Minister Nickolas DaCosta said the measure would have to be revenue neutral, which means duty cut in one area would be compensated by an increase elsewhere in the schedule of duties.

The ESO recently upgraded its 2026 inflation projection to 5.3% from 2.6%. One of the main reasons was the jump in energy prices, caused by the Iran War. In response the government announced a $9 million temporary “relief package” to protect Cayman families from rising gas prices at the pumps, and on electricity bills during the summer months when rising temperatures increase electricity bills.

The impact of fee increases

But despite the measures listed above, the NCFC government has also adopted inflationary policies. In November, Minister of Finance and Economic Development, Rolston Anglin, revealed significant increases to a wide range of fees paid by foreign individuals and companies.

While the government was keen to portray these increases as targeted measures that would not impact Caymanians, it’s likely that some of the higher fees – for example the increase in work permit fees – will be passed on to the wider economy.

Another inflationary measure was the increase in the minimum wage to $8.75 per hour from $6 per hour. Given the high cost of living on the islands it would be hard to begrudge someone $8.75 per hour – yet nonetheless it will push up prices.

A small island economy like Cayman will always be subject to global inflationary pressures. But it’s clear that the NCFC government has plenty more to do before it can claim victory in reducing the cost-of-living for Caymanians – even after the conflict in the Middle East ends.

Compass Media will continue its coverage of the NCFC administration’s first year in office and key national issues across all platforms.