Consumer prices drop 1.15% in August as electricity, airfares decline

Consumer prices in the Maldives fell by 1.15 per cent in August compared with July, despite increases in the prices of several food items and services, according to data from the Maldives Bureau of Statistics (MBS).

The Consumer Price Index (CPI) figures released by MBS on Sunday showed that the monthly decline was partly driven by a 3.21 per cent fall in electricity prices and a 2.80 per cent decline in airfares.

Prices of tobacco products also fell by 25.45 per cent during the month.

The overall decline came despite price increases across several categories. Prices of milk, dairy products and eggs rose by 1.99 per cent, while fruit and vegetable prices increased by 1.19 per cent.

Fish prices increased by 0.83 per cent, while communication services rose by 2.23 per cent.

Guesthouse prices recorded a 2.72 per cent increase, while prices at cafés and restaurants rose by 0.68 per cent. Healthcare services increased by 0.99 per cent and personal care products by 0.65 per cent.

Although consumer prices declined from July to August, they remained 0.76 per cent higher than in August last year, indicating an increase on a year-on-year basis.

The figures also showed differences between Malé and the atolls. The CPI for Malé fell by 1.57 per cent in August compared with July, while prices in the atolls declined by 0.54 per cent.

MBS said the month-on-month CPI measures the average change in prices of goods and services commonly purchased by households.

The CPI is used to measure changes in the cost of consumer goods and services and to track inflation. MBS collects prices for more than 9,500 goods and services each month across Malé and the atolls to compile the index.