Rising prices for various food items, including meat, fish, seafood, dairy products, oils, fruits, and vegetables, contributed to an increase in the Consumer Price Index, pushing inflation up to 6.7 percent in June. This marks a rise from May’s rate of 5.8 percent, following an earlier high of 7.1 percent in April, the highest in a decade.
The Reserve Bank of Fiji has projected that inflation will stabilize between 4 to 5 percent by the end of the year, which they noted in their latest economic review. They reported that the annual inflation rate increased from 5.8 percent in May to 6.7 percent in June, influenced by hikes in food prices and other categories including non-alcoholic beverages, tobacco, transport, housing, and utilities.
Data from the Fiji Bureau of Statistics highlighted that the increase in food prices was particularly pronounced for meat, dairy, fruits, and vegetables, which significantly impacted the June Consumer Price Index.
The Bureau employs two inflation measuring methods: one compares the average CPI over the past year with the previous year, while the other contrasts the current month with the corresponding month from the previous year. For the year ending June 2024, the average annual inflation rate was recorded at 4.3 percent, while the month-over-month inflation rate from June 2023 to June 2024 stood at 6.7 percent.
The Reserve Bank of Fiji anticipates a moderation in inflation from this month onward, expecting it to stabilize around four to five percent by year’s end.