February 3, 2010

Inflation at 6.8% in 2008, an increase of 0.8 %

Inflation at 6.8% but should improve: RBF
February 02, 2010

The Reserve Bank of Fiji says inflation in December 2009 stood at 6.8 percent, an increase of 0.8 percent from the previous month and a 0.2 percent increase over 2008.

Increases in food and transport prices together with other miscellaneous items have been the main cause, according to the RBF January economic review.

This despite its earlier inflation forecast of 9.5 percent for December 2009 following last April’s 20 percent devaluation of the Fiji dollar.

While the RBF estimates inflation in 2010 at 2.0 percent, risks that may affect the forecast include higher commodity prices especially oil in the coming months as the global economy picks up, as well as higher prices of market items in short supply following Cyclone Mick that hit Fiji last month.

The RBF also said that Fiji’s trade deficit up to September 2009 narrowed to $1.2 million, while personal remittances (which grew by 56.5 percent from the previous year) strengthened the current account.

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