Fiji’s inflation rate saw a notable decline, dropping to -0.9 percent last month, marking the lowest monthly rate since May 2021. This substantial decrease from the 7.1 percent recorded in April of the previous year reflects easing price pressures, particularly in key sectors such as food, transportation, clothing, and utilities.
Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, indicated that the reduction in inflation can be attributed to favorable global commodity trends, notably the falling prices of fuel, along with various government interventions aimed at alleviating the cost-of-living crisis.
Since assuming office, the government has introduced measures to support vulnerable households. These include maintaining zero VAT on 22 essential food and household items, increasing welfare assistance by 15 to 25 percent, and forgiving $650 million in debt for more than 53,000 families. Additionally, a raise in the national minimum wage to $5.00 per hour is set to take effect in April 2025 and supports efforts to boost household incomes and economic resilience.
Professor Prasad also noted the government’s achievement in securing a record sugarcane price of over $100 per tonne for farmers and increasing civil service salaries, which infuses $85 million into the economy. He emphasized ongoing budgetary support for agriculture, fisheries, and forestry to enhance rural livelihoods and food security.
Looking forward, the government will continue to closely monitor inflation and is prepared to take further actions when necessary, aiming for broad-based and inclusive economic growth. The overall sentiment surrounding Fiji’s economy remains optimistic, with signs that government strategies are beginning to yield positive results for families across the nation.
In summary, Fiji’s recent economic developments reflect a positive trajectory, where proactive measures and supportive policies are helping to stabilize prices and foster an environment of resilience for its citizens.
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