Business

Inflation rate forecast to drop by year-end: PM

September 12, 2022 5:52 am

Fiji’s inflation rate was relatively high during the second half of the 2021-22 financial year.

Speaking on Radio Fiji One’s – Na Noda Prime Minister program, Prime Minister Voreqe Bainimarama attributed this to the COVID-19 restrictions which he says were further worsened by the Russia-Ukraine war earlier this year.

The Prime Minister is reminding Fijians to be wary of evolving global issues, as we continue to feel the ripple effects of the increasing prices of food and oil.

Article continues after advertisement

“Increasing freight costs since the pandemic continues to affect the global economy. At present, the price of oil per barrel stands at around US$90 million, and there was an influx in prices of wheat, oil, bread, and biscuits over the past few months. This is something we’ve been expecting since 2020, as COVID-19 started to take a toll, crippling trade and the economies of developed countries.”

Bainimarama says the inflation rate is forecast to drop by December, including the prices of selected imported food and oil.

“Fiji’s inflation rate is likely to drop to 5 percent by year-end, 3.1 percent in 2023, and 2.4 percent in 2024. We are positive enough that the oil prices will drop as well over the next few months.”

The government has set aside $60 million in this financial year, to cushion the impacts of this global economic crisis.
Bainimarama stresses they will continue to monitor the global and local economic status.