Maldives inflation rate observes positive growth during the second quarter of 2021, in comparison with the negative 0.7% felt during the first quarter.
According to Maldives Monetary Authority (MMA) the inflation rate pushed up due to the increase of the cost of electricity, water supply as well as the price hike in cigarettes. The cost of electricity surged following the state’s decision to discontinue the discounts provided by the government during Q2-2021.
On the other hand, price on cigarettes increased following the amendment of the Export-Import Act during July 2020 which reflected towards the surge in retail prices in cigarettes.
Apart from water supply, cost of international passenger air transport and surge of prices in dairy products had also pressured the inflation rate upwards.
Moreover, MMA had reported that as per the Maldives Consumer Price Index (CPI) the highest pressure had been felt from electricity with an increase of 44.4% in the category during the review quarter.
Furthermore, price of cigarettes observed an annual growth of 40.5% while the CPI category of water supply recorded a growth of 28.6% during Q2-2021.
However, categories such as information and communication services, vegetables, housing rent and household appliances observed visible price reductions that pushed the inflation rate downwards.