Inflation remains low
4 November, 2017, 12:00 am
INFLATION in Fiji has remained low over the past few months remaining on 2.0 per cent as of September this year, the central bank stated.
The Reserve Bank of Fiji, in its quarterly review for September, stated that the headline inflation in September was 2.0 per cent, unchanged from June.
This is also lower than the 5.6 per cent inflation registered in September last year.
The country’s inflation rate had declined to 1.9 per cent in August from 2.0 per cent in July of this year, marking the lowest it had been since 2015.
The central bank stated that the lower inflation outturn was mainly attributed to the falling food prices as supply of agricultural market items have normalised after Severe Tropical Cyclone Winston last year.
This was also coupled with lower fuel prices which more than offset the higher prices of alcoholic beverages and cigarettes as per the duty increase announced in the 2017/18 National Budget.
The review also noted that domestic inflation fell to 2.9 per cent in September from 4.6 per cent in June which contributed 1.6 percentage points to headline inflation.
This was underpinned by the food and non-alcoholic beverages category for which prices had declined for the sixth consecutive month in September.
Prices of pounded and unpounded yaqona, cigarettes and local beer however remained high.