The Maldives Bureau of Statistics has released the latest Consumer Price Index (CPI) for November 2024, showing a significant increase in inflation. Compared to October 2024, the CPI for all groups rose by +2.47%, a sharp jump from the previous month’s slight decrease of -0.16%. This increase means that the cost of living is rising more quickly, affecting everyday prices for consumers across the country.
Key Figures for November 2024
In November 2024, the Consumer Price Index (CPI) excluding fish rose by +2.62%, a sharp increase compared to a decrease of -0.24% in October. Over the past year, the overall CPI has increased by +4.05% by November, up significantly from +1.06% in the year leading up to October. These figures indicate that prices are rising at a faster rate than earlier in 2024, which could place greater strain on household budgets as everyday goods and services become more expensive.
Biggest Price Increases
Several categories saw significant price hikes in November, especially in tobacco, food, and transport. Tobacco prices surged by +98.12%, driven largely by changes in import duties on tobacco products that came into effect in November 2024. Cigarettes, in particular, saw prices nearly double. Similarly, restaurants and cafe’s saw a +15.81% price increase.
Meanwhile, transport costs by sea rose by +5.13%, with sea transport services becoming more expensive. However, the overall increase in transport prices was partially offset by a -1.30% decrease in motorcycle prices. Other categories that saw price increases included shoes and footwear (+2.66%), fruits (+0.64%), and garments (+ 0.94%).
Price Declines
Despite the widespread price hikes, some products and services saw price drops in November 2024. Mobile communication services experienced a decrease of -2.76%. Vegetables also became slightly cheaper, with prices falling by -1.94%, offering some relief in the grocery sector. Additionally, motorcycles saw a price drop of -1.30%, which balanced out some of the transport price increases.
What Does This Mean for Consumers?
The CPI data for November 2024 shows that inflation is affecting sectors like tobacco, restaurants, and transport. The increase in restaurant prices, particularly in light of the holiday season, may lead consumers to rethink their dining habits. Transport costs are also on the rise, though the decline in motorcycle prices provides some offset.
While there are some price drops in areas like vegetables and mobile communication, the overall trend points to higher living costs. As we move into 2025, consumers will need to adjust to the continuing pressure on their budgets, as inflation is expected to remain elevated. Additionally, the upcoming changes to the subsidy model will likely increase costs for essential goods and services, further compounding the financial strain on households. This shift is set to affect a wide range of sectors, and consumers will need to adapt to the evolving economic landscape.
