Inflation Surges in Maldives Amid Rising Food Prices

 According to data released by the Maldives Monetary Authority (MMA) on Wednesday, the inflation rate stood at 1.4% at the end of June, up from 0.8% in May, marking a month-on-month increase of 0.6%.

This marks the second time inflation has exceeded 1% this year, having first done so in February. The inflation rates for the first six months were as follows: January at 0.9%, February at 1.1%, March at -0.2%, April at 1.1%, May at 0.8%, and June at 1.4%.

The primary drivers of the inflation increase were the rising prices of vegetables, fish, and fruit, which rose by 0.46%, 0.45%, and 0.17%, respectively. Additionally, sea transportation, hospital services, and electricity prices saw notable increases, with electricity costs rising 0.15% from May and hospital and dairy prices each increasing by 0.11%.

Conversely, prices for household goods, airline tickets, and communication services saw a decline. Some traders, speaking anonymously to Atoll Times, attributed the price hikes to challenges in acquiring dollars and the subsequent appreciation of the dollar, which is now trading above MVR 18. Other contributing factors included congestion at transit cargo ports and delays in the delivery of goods to the Maldives. One businessman noted, "The main reason is the price of the dollar. However, there are also ship delays."