Fiji's inflation rises due to surge in global commodity prices, supply chain disruptions 【Price inflation, Freight cost】

2022.03.04  SOURCE:Xinhua

SUVA, Feb. 9 (Xinhua) -- Fiji's annual inflation rate has been increasing since the second half of 2021 and was 3 percent in December last year, Acting Prime Minister and Minister for Economy Aiyaz Sayed-Khaiyum said on Wednesday.


He said higher prices were noted mainly for food and fuel resulting from a surge in global commodity prices and continued supply chain disruptions.


Fiji's inflation rate was 2.7 percent in January this year, led by higher prices for food and fuel as well as household furnishings, maintenance and health products, Khaiyum added.


He said over the next few months, Fiji can expect inflation to rise in fruits and vegetables due to damages in some places in Fiji.


Khaiyum said the government is working behind the scenes to see how they can mitigate inflated prices of goods in the Pacific island nation.


Inflation has stayed in the negative range for around 16 months between October 2019 and January 2021. Since August 2021, inflation has been on an upward trajectory led by supply-side constraints, recovery of domestic demand, relaxation of COVID-19 measures and higher freight costs, Khaiyum said.


High inflations in Fiji's key trading partners are also passed on to the island nation's domestic prices through imports of goods. In December last year, inflation in the United States was 7 percent, the highest in almost four decades, with 5.9 percent in New Zealand and 3.5 percent in Australia, the highest since 2014, he said.