Maldives Monetary Authority (MMA) has predicted that by the end of the year, the inflation rate will exceed the bank’s projection.
The Finance Ministry’s Fiscal Strategy predicts the annual inflation rate would reach 3 percent by the end of this year, citing MMA’s financial estimates. As a result of the Russia-Ukraine war, global oil and food prices have risen to levels not seen in the past two decades, the report stated that inflation is projected to be higher than originally predicted.
According to the report, energy and food prices are projected to remain volatile in the coming months on the worldwide market. In import-reliant nations like the Maldives, where inflation is predicted to rise, the price of commodities is expected to increase.
According to the Ministry of Finance, prices rose in the first four months of this year. In April, food costs increased by 3.7 percent. Food prices jumped by the greatest percentage in the food category.
The Ministry of Finance stated that despite the rise in food costs, the average price of goods did not grow at the same rate due to the base effect result of lower telecommunications rates by the end of 2021.