The headline inflation rate in Fiji peaked at 5.8 percent in November 2023, the highest level since January 2017, according to the World Food Program (WFP) annual review for 2023.
In December, the inflation rate eased to 5.1 percent, but this remained 3.1 percent higher than in December 2022.
“The global food crisis in 2022 negatively affected both food and non-food prices in Fiji, including fuel, resulting in a transport inflation rate increase of over 22 percent in August 2022 with the Consumer Price Index (CPI),” stated the WFP.
“In 2023, Fiji’s economy continued to rebound from the disruptions caused by the fuel price surge in 2022. Throughout the year, transportation costs in Fiji notably decreased compared to the previous year, bringing about a period of relative stability, although costs still remained higher than pre-crisis levels.”
At the beginning of 2023, the food inflation rate was at 7 percent, WFP said.
“It gradually increased in the third and fourth quarters, with minor fluctuations, peaking at 12 percent in November.”
Despite significant changes in transportation inflation rates in 2022 and 2023, the impact on food costs in Fiji was not significant, indicating some degree of robustness in local food systems and supply chain flexibility.
The commodity groups contributing 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).