Inflation rate in January was 6.8% - RBF

The Reserve Bank of Fiji says the inflation rate in January was 6.8 percent compared to 3.9% in December last year.

The RBF says this is a result of the impact of the Tropical Depression experienced in December last year which affected the prices of agricultural produce and the fallout of the lower Value Added Tax rate implemented a year ago from the inflation calculation.

However the RBF is anticipating a positive growth outlook of 3.6 % this year in comparison to a 2% estimated growth last year.

The RBF says this is due to improve performances across all major sectors of the economy, supported by favorable domestic sentiments and accommodative fiscal and monetary policy settings.  

Governor Barry Whiteside says despite the setback from last year’s natural disasters, key sectors such as tourism, gold, garments and electricity registered positive performances in 2016. 

Foreign reserves as at 23rd February was $1,976.1 million sufficient to cover 5.3 months of retained imports of goods and non‑factor services.