Inflation in Fiji has risen once again after a decrease in May, driven primarily by increasing food prices. According to the Reserve Bank of Fiji (RBF) in its recent economic review, the annual headline inflation rate surged to 6.7 percent in June, up from 5.8 percent in May.
RBF highlighted price increases across several categories, including food and non-alcoholic beverages, alcoholic beverages, tobacco and narcotics, transport, housing and utilities, as well as restaurants. April had recorded an inflation rate of 7.1 percent, marking a decade-long peak.
Detailed data from the Fiji Bureau of Statistics revealed that the surge in food prices was primarily attributed to increases in the costs of meat, fish and seafood, dairy products, oils and fats, fruits, vegetables, confectionery, and other food items, which were significant contributors to the changes in the Consumer Price Index (CPI) for June.
The Bureau tracks inflation using two methods: one examines the average CPI over the last year compared to the previous year, while the other assesses the CPI for the current month in relation to the same month in the previous year. For the 12 months leading up to June 2024, the average annual inflation rate was 4.3 percent, while the month-to-month inflation rate stood at 6.7 percent.
Looking ahead, RBF anticipates that inflation will begin to moderate this month, with expectations of it settling around four to five percent by the year’s end.