Maldives has lowest inflation in region, says Pres
Inflation statistics do not reflect the prices of commodities in the market because the government controls the prices of many commodities.
Maldives has the cheapest commodity prices in the region, President Ibrahim Mohamed Solih said on Monday.
The president made the remarks while addressing the people of Dh. Rinbudhoo as part of his ongoing visit to Dhaalu Atoll during his re-election campaign.
President Solih said the government's measures to overcome the economic slowdown caused by the COVID-19 pandemic have been criticised by the opposition, but as a result of the measures, Maldives has been among the 10 fastest growing economies in the world.
"[According to opposition] we go bankrupt once a month; every month since June last year, the country has gone bankrupt. Commodity prices are soaring and they are talking about people going hungry," he said, indirectly responding to statements made by his rival, speaker Mohamed Nasheed.
"However, today's situation is that the country has some of the cheapest commodity prices in the region."
Inflation rate was expected to remain at 5.4% this year, but now it is at 3.2%, he said.
The main reason why the measure of inflation, or CPI, in Maldives is not rising is because a large proportion of goods and services, which weigh heavily in CPI calculations, are subsidised, experts say. Inflation statistics do not reflect the real prices of commodities in the market because the government controls the prices of these commodities in various ways.
