Inflation jumps to 5.1 percent: RBF

October 14, 2009 02:02:29 PM

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Inflation in Fiji more than doubled in August to 5.1 percent, up from 2.2 percent in July, according to the Reserve Bank of Fiji’s September economic review.

The central bank said the jump was led by an increase in prices of all categories except for transport and heating and lighting.

The trend is in line with the RBF’s forecast of year-end inflation of around 9.5 percent as a result of the 20 percent devaluation of the Fiji dollar in April.

“Inflation is being restrained by much lower prices of energy-related items this year compared to the same period last year, which have offset, to a large degree, the recent price increases in other categories,” the RBF said.

Domestic exports fell by 13 percent in the first seven months of the year due to lower earnings from sugar, mineral water, timber, garments, flour and fruits and vegetables among other products.

The RBF said the decline in total exports was larger at around 18 percent due to lower receipts from re-exports of mineral fuels.

Imports also fell during the same period by 16.4 percent due mainly to lower mineral fuel payments.

At $982 million, Fiji’s merchandise trade deficit was 15.2 percent lower than the same period last year.

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