Inflation in the Maldives eased in January, declining to 0.6%, according to data released today by the Maldives Monetary Authority (MMA). This figure marks a 3.1% decrease compared to January of the previous year.
January’s inflation rate also represents a decline from a reading of 1.9% recorded in December. The latest figures are slightly below the budget book’s forecast, which anticipates inflation reaching 3.9% by the end of this year. For context, inflation stood at 2.6% at the end of last year.
Food Inflation Moderates
While overall inflation slowed to 0.6%, food inflation remained at a higher 6%. However, this is still 2.9% lower than last year when food inflation was recorded at 8.9%. Specific areas saw varied results, with restaurant inflation at 3%, fish inflation at 6.8%, and healthcare inflation at 4.2%.
Reasons Behind the Decline
The Maldives Monetary Authority (MMA) attributes the fall in inflation during the first month of the year to declining commodity prices. Analysts will be closely monitoring the situation in the coming months as this trend, alongside other global economic factors, will determine the trajectory of inflation in the Maldives for the remainder of the year.
