Inflation is expected to pick up and settle at 2% by the end of this year – RBF

The annual inflation rate turned positive in August and stood at 0.8 percent, higher than the -0.4 percent recorded in the previous month, led by higher food and energy prices.

The Reserve Bank of Fiji says in Fiji, food prices rose by 6.9 percent, while the upswing in global energy prices underlined the 36.5 percent average growth in domestic fuel prices compared to the same period last year.

It says inflation is expected to pick up and settle at 2 percent by the end of this year.

The RBF says globally, supply chain blockages, exorbitant shipping costs and higher fuel and energy prices have fuelled inflation in some countries, prompting a reassessment of their accommodative stance.

Global food prices rose in August, while oil prices dipped over the month.

Meanwhile foreign reserves remain above adequate level and is forecast to remain comfortable in the medium term.

Foreign reserves is around $3.184 billion, sufficient to cover 11 months of retained imports.