Food prices rose 6.9% in April

By on June 3, 2022 0

Food prices rose 6.9% in April and annual headline inflation hit 4.7% for the month.

According to the latest economic survey from the Reserve Bank of Fiji, rising prices of imported food and energy continue to keep inflation rates high.

Motor fuel prices increased by 25.2%, kerosene by 28.5% and gasoline by 27.7%.

The RBF indicates that underlying inflation also remained higher at 2.8% against 1.8% for the year, which indicates higher prices overall.

Despite increased import payments, supported by higher food and energy prices and accelerating demand, foreign exchange reserves are expected to remain adequate in the near term, supported by rising revenues related to tourism, inward remittances and drawdowns on government external loans.

Foreign exchange reserves stood at $3.02 billion as of May 31, equivalent to 8.4 months of withheld imports of goods and services.

In the year to April, inbound personal remittances rose 10.1% to $303.1 million. This is money sent by families and friends to Fijians living here.

According to the RBF, going forward, an increase in demand for Fijian workers under the various labor market programs is likely to keep remittances down in the medium term.