Local market, Photo:CoralGlass

Inflation Rises in Maldives

After months of decline, the Consumer Price Index (CPI) for the Maldives reported a rise in inflation in May, driven by significant increases in electricity and water charges.

According to the National Bureau of Statistics, inflation was 1.5 percent higher at the end of May compared to the previous month.

The surge in utility costs was the primary contributor to this inflationary trend. Specifically, the unit price of electricity jumped by 37.44 percent, while the unit price of water saw an even steeper increase of 45.70 percent.

In addition to utility costs, the housing, water, electricity, gas, and other fuels group experienced a 7.53 percent price hike. In contrast, the education and fish groups, along with food, food products, and transport, saw price drops in May. Other groups recorded only minor price changes.

The higher inflation in May followed widespread public complaints about increased electricity bills for March, April, and May, attributed to hotter weather. In response, the government provided discounts for March and April's bills.

The CPI data highlights the significant impact of rising utility costs on overall inflation in the Maldives.