The United States Central Bank has raised interest rates to its highest ever levels in almost 30 years.

This comes as the bank tries to address rising inflation rates, with increasing chances of a recession.

The US Central Banks decision to raise interest rates to levels ranging between 1.5% to 1.75%, is expected to raise prices of goods and services.

Fiji Development Bank Chief Executive Saud Minam says this recent development in the US will have a ripple effect across the global market, and eventually affect Fijians

“Normally it takes a little while before it comes down because it is directly linked to the supply chain. With the oil prices going up, we are starting to see increases in the prices, especially some of the commodities.”

Minam says consumers are already feeling the pinch of increasing prices of goods due to global supply chain complications, and it will get worse before it gets better.