Inflation Rate Decelerates

Central Bank, Maldives Monetary Authority (MMA) has revealed that the hike in inflation rates has decelerated at 1.1 percent at the end of January this year, after registering at 1.3 percent in December 2017.

MMA attributed this deceleration to the significant decline in electricity prices, and the decrease in prices for staple food items.

However, MMA also noted that housing rentals and price of tobacco products increased over the period. In addition to that, MMA’s monthly economic review noted that food prices also saw an increase due to the growth in prices of vegetables.

Noting the monthly percentage change in the consumer price index, MMA’s review stated that it was registered at 0.3 percent in January. MMA attributed this increase due to the increase in fish prices during the month, coupled with housing rentals and vegetable prices.

While inflation rate has decelerated, the highest inflation rates were recorded in May, 2017 – with inflation rates reaching 4.6 percent.