February inflation drops to 1.9 per cent

March 27, 2009 06:48:34 PM

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Fiji’s inflation rate fell from 6.1 per cent in January to 1.9 per cent in February, the lowest since July 2006, the Reserve Bank of Fiji (RBF) has revealed.

The central bank’s economic review revealed the significant fall in prices over the month was underpinned by lower charges for the transport, heating and lighting, food and miscellaneous items.

The review for the month ended March said: “Looking ahead, domestic price pressures are expected to be relatively contained and the year-end inflation forecast remains at 4.5 per cent”.

Meanwhile, investment conditions remain subdued as reflected by various partial indicators for the construction industry.

“However, investment lending rose in January this year,” the review said.

The RBF said investment lending expanded by 10.0 per cent in January compared to 3.0 per cent registered in the corresponding period last year, led by the real estate sector.