Inflation at 2.6 percent as food and fish prices rise

Nov 8, 2023, 3:56 AM
Apples and oranges for sale at the local market. -- Photo: Adhadhu file

Apples and oranges for sale at the local market. -- Photo: Adhadhu file

Inflation rose to 2.65 percent in September as prices increased for fish, fish products and food items, the Maldives Bureau of Statistics has said.

The Consumer Price Index (CPI) released monthly by the bureau shows that prices increased 0.45 percent in monthly terms in September, up twofold from the previous month and fourfold from June and July.

Among the categories with the largest spike, the price of fish and fish products rose 2.41 percent and the price of food items rose 1.92 percent.

Food items with the sharpest price increases include:

  • Oranges (45.41 percent)
  • Apples (17.62 percent)
  • Ginger (10.59 percent)
  • Chillis (10.49 percent).

Aside from fish and food, prices also increased in most other categories, in particular for restaurants and accommodation. But compared to fish and food prices, the increase was relatively small.

Prices fell for mobile communication services, furniture, household equipment and tobacco.

The price of arecanuts fell 2.64 percent in September, according to the CPI.

The price of arecanuts previously shot up to MVR 200 per kilo but has since fallen to MVR 80 per kilo after supply constraints eased.

The Finance Ministry estimated an inflation rate of 5.4 percent in the budget proposed for this year.

However, the inflation rate was later revised to 2.9 percent as price increases were moderated by improving global economic conditions and government subsidies for essential goods and services.

The biggest increase in prices since 2013 was recorded this year, driven by global commodity prices and a hike in the domestic Goods and Services Tax (GST) to eight percent in January.

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