The headline inflation rate in Fiji reached its peak in November 2023 at 5.8 percent, marking the highest level since January 2017, according to the World Food Program (WFP) annual review for 2023.
In December, the inflation rate dropped to 5.1 percent, which is 3.1 percent higher than in December 2022.
“The global food crisis in 2022 adversely impacted both food and non-food prices in Fiji, including fuel prices, leading to an increase of over 22 percent in transport inflation in August 2022 as indicated by the Consumer Price Index (CPI),” the WFP stated.
“In 2023, the Fijian economy continued to recover from the disruptions caused by the surge in fuel prices in 2022.
“Throughout the year, transportation costs in Fiji notably decreased compared to the previous year, bringing about a period of relative stability, although the costs still remained higher compared to pre-crisis levels.”
At the beginning of 2023, the food inflation rate stood at 7 percent.
“It gradually increased in the third and fourth quarters, with minor fluctuations, peaking at 12 percent in November.
“It should be noted that despite significant changes in transportation inflation rates in 2022 and 2023, the impact on food costs in Fiji was not significant. This may indicate some degree of robustness in local food systems and flexibility in the supply chain, suggesting that food production inputs were not substantially affected by the rise in fuel prices.”
The commodity groups that contributed the most to the inflation rate in 2023 were transport (+10 percent) and food and non-alcoholic beverages (+5 percent), followed by clothing and footwear (+4 percent), restaurants and hotels (+3.9 percent), and health (+3 percent).