August inflation stood at 5.9 percent

September 25, 2022 11:50 am

[File Photo]

The Reserve Bank of Fiji says the annual headline inflation rate for last month stood at 5.9 percent from 5.2 percent in July.

This as imported inflation surged to 15.4 percent in August and accounted for 4.6 percentage points of the overall headline inflation.

The RBF says Fiji’s current inflation trajectory depends on the evolving geopolitical situation and its impact on global commodities, supply chains, freight and other input costs.

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The headline inflation increased in August due to higher food and fuel prices.

It says despite the current gain in consumer prices, inflationary pressures are expected to ease as global crude oil prices are slowly retreating and have fallen below US$100 per barrel since August.

The RBF says world food prices also fell for the fifth consecutive month in August.

Considering these factors, the RBF’s headline inflation forecast for the end of this year is at five percent, with expectations of a gradual moderation to around 3.0 percent at the end of next year.

Meanwhile, as of Wednesday, liquidity in the banking system remains ample at $2,595.8million, helping outstanding lending rates move to historic lows.