Global inflationary pressures will increase further

May 27, 2022 12:00 pm

The Fijian government will be exploring ways to cushion global inflationary pressures as it is expected to further increase in the next few months.

Minister for Economy, Aiyaz Sayed-Khaiyum says early response strategies have spared ordinary Fijians to some extent from the harsh implications of the global inflation.

Sayed-Khaiyum says international inflation picked during the global COVID-19 outbreak, exacerbated by the Ukraine – Russia war.

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“Last we were sitting at around 3 to 4 percent. It will have an inflationary impact prior to the Ukraine – Russia war, the freight cost had gone significantly high. At the moment we will see what happens.”

Reserve Bank of Fiji Governor, Ariff Ali says Fiji can expect the ramification of the current inflation to be felt in years to come.

“There are still headwinds coming up in the next couple of years. These headwinds are slightly different from COVID and it’s coming in terms of higher prices, commodity prices and supply chain issues and it will ultimately affect the import.”

The International Monetary Fund says our government’s ability to manage sustainable debt levels also absorbs spike in some imported items.

Fiscal consolidation, structural reforms and human capital are important aspects that will solidify our upward economic projection in decades to come.