Inflation rate drops to 1.4% in February as fuel and food prices stabilise

The inflation rate stood at 1.4 percent in February, much lower than the 4.6 percent in February 2024, and 4 percent recorded in January.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says on a year-on-year basis, last month compared to February last year, the lower inflation was largely underpinned by lower fuel prices and slower increase in food and non-alcoholic beverages prices.

He says the prices of local fruits, vegetables and root crops have stabilised following the flooding experienced late last year and in January this year.

The Deputy Prime Minister also says they have successfully rolled out the $200 Back-to-School support for the 2025 school year and a total of $43.1 million has been paid out to 213,520 students.

Professor Prasad further says from the 1st of August 2024, the national minimum wage rate increased from $4 to $4.50 per hour.

He says that the rate will increase to $5 per hour, effective from tomorrow.

The Deputy Prime Minister says around 33,000 civil servants had a salary increase effective from the 1st pf August 2024 while the Government has provided further funding of $4 million in the 2024-2025 financial year to reinstate the pension payments to pensioners.