Inflation rate to pick up in coming months says RBF
May 11, 2018 8:08 pm
Fiji’s inflation rate was recorded at 2.6 percent at the end of last month, however, this is expected to pick up in the next two months says the Reserve Bank.
Governor Ariff Ali says the increase is expected to come from the pick-up in the prices of fruits and vegetables following Tropical Cyclones Josie and Keni.
Ali says the inflation rate is temporary and should stabilize by three percent in the coming months.
“Of course the risk is on oil prices as you all have seen that it’s recently risen and the geopolitical tensions has also some impact. There’s no domestic upward pressure on inflation and our exchange rates which is packed to five major countries gives us some stability or some anchor on inflation.”
Meanwhile, the Reserve Bank has estimated that the Fijian economy grew by 4.2 percent last year.
The Governor says the initial forecast for this year was 3.6 percent but this has been revised downwards to 3.2 percent due to the recent cyclones.