Gas, food, fuel

Fuel, gas, and food prices will continue to remain high in Fiji and the Pacific region.

This is according to the Asian Development Bank’s latest economic outlook report, which states that monetary policy will likely remain tight as global headwinds that constrained economic growth in Pacific economies last year will continue this year.

ADB Director of Macroeconomic Research Abdul Abiad says the high global fuel prices due to the Russian invasion of Ukraine are compounding inflation pressures in Pacific countries like Fiji.

“Oil and gas prices will likely remain high as EU sanctions on Russia further tighten in December and January. Food prices will also likely remain high. In both cases, they both have come down from their post-invasion peaks but we expect them to remain elevated compared to pre-pandemic levels.”

The outlook for next year shows Pacific economies moderating at an average of above three percent, with risks remaining from natural disaster impacts and climate change.

The ADB states that the private sector can play a bigger role, assisted by government reforms such as the ease of doing business in Fiji, which is attracting both local and overseas investment.