THE inflation rate for August rose to 10.4 per cent from the 10.1 per cent recorded in July. this is according to the Fiji Bureau of Statistics. But the Reserve Bank of Fiji has forecast the end-of-year inflation rate to be 7 per cent.
When comparing August with the other months this year, this is the highest so far and the third successive month that the rate is above 10 per cent.
The bureau listed increases in the prices of alcoholic drinks and tobacco, heating and lighting, durable household goods such as electrical appliances, crockery and jewellery as well as transport. Decreases were recorded for the prices of medical goods, toiletries, laundry goods and other household items. Lower prices were also recorded for men's and women's wear and men's footwear.
There was an overall 1.2 per cent decrease in the prices of wheat products, cereals, fruit juice, fruits, yaqona, fats and oils, coffee, tea, Milo, Ovaltine, top dressing and market items such French bean, long bean, English cabbage, chilly long green, okra, eggplant, local tomato, cucumber, bele, pumpkin, tubua, garlic, dalo, split peas and blue peas.
But when comparing August 2010 and August 2011, there has been a 10.9 per cent increase in the prices of food, 5.2 per cent rise in the prices of alcoholic drinks and tobacco, 0.7 per cent increase in the prices of housing and a 54.1 per cent increase in the prices of heating and lighting.
The prices of durable housing goods have increased by 0.5 per cent in August 2011 when compared to August 2010 while clothing and footwear prices have increased by 1.4 per cent. The inflation rate on transport was 6.8 per cent in August 2011 and 2.1 per cent in services.