Maldives inflation spikes again; food prices hike
Traders believe that the main reason for the rise in prices is the difficulty in obtaining dollars and the appreciation of the dollar.
By
Ahmed Naif
Food prices have soared, pushing inflation higher than the first six months of this year.
Inflation is the economic measure of the rise in average commodity prices.
Inflation stood at 1.4% at the end of June, according to data released by the central bank, Maldives Monetary Authority (MMA) on Wednesday. It stood at 0.8% in May. Therefore, month-on-month inflation has risen by 0.6%.
Inflation had risen over 1% this year in February for the first time. Inflation in other months was below 1%.
Inflation in the first six months of this year:
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January - 0.9%
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February - 1.1%
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March - %0.2-
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April - 1.1%-
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May - 0.8%
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June - 1.4%
Statistics show that the biggest contributor to the rise in inflation is the rise in prices of vegetables, fruits and fish products. The prices rose as follows:
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Vegetables - 0.46%
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Fish - 0.45%
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Fruits - 0.17%
In addition, sea transportation, hospital prices and electricity prices rose last month. Electricity prices rose 0.15% from May. Hospital prices and dairy prices rose 0.11%.
The declining prices were for household goods, airline tickets and communication services.
Some traders who spoke to Atoll Times on condition of anonymity said the main reason for the rise in prices was the difficulty in obtaining dollars and the appreciation of the dollar.
The dollar is now traded above MVR 18.
In addition, some traders also mentioned the congestion of transit cargo ports and delays in bringing goods to Maldives.
"The main reason is the price of the dollar. However, there are also ship delays," a businessman said.
