Inflation surged to 5.8% in November - RBF

Inflation surged to 5.8% in November - RBF

By Rashika Kumar
Saturday 30/12/2023
[Image: File]

Inflation surged to 5.8 percent in November as higher prices were noted across most categories, particularly the food and nonalcoholic beverages, transport, housing and utilities, and restaurants and hotels categories.

This has been highlighted by the Reserve Bank of Fiji in their economic review for December where they say inflation continues to be driven mainly by supply side factors.

They say foreign reserves are adequate at around $3.4 billion as at 28th December, sufficient to cover 5.7 months of retained imports of goods and services.

RBF says the current global and domestic economic outlook is vulnerable to several ongoing challenges and uncertainties.

These include escalating geopolitical conflicts and its implications on commodity prices, and further softening in global demand due to lagged effects of monetary policy tightening on the international front.

RBF says on the domestic front, adverse weather conditions during Fiji’s cyclone period and its potential to raise food prices, skilled labour shortage due to emigration and capacity constraints in the tourism industry are major downside risks.

They say in consideration of current economic conditions, and the outlook for inflation and foreign reserves, the RBF Board in its last meeting on 7th December agreed to maintain the Overnight Policy Rate at 0.25 percent.

RBF says the global economic environment is weakening.

Growth in Fiji’s major trading partner advanced economies is below-trend as the lagged effects of monetary tightening and prolonged high inflation weigh on real incomes, household consumption and housing investment.

They say however, disinflation is gaining traction in some advanced economies such as the United States and Eurozone due to softening demand and positive base effects from lower international energy and food prices.

RBF says commodity prices showed mixed outcomes in November, with Brent crude oil and sugar prices falling but gold prices rising.

The Brent crude oil price fell to US$82.83 per barrel over investor concerns about sluggish fuel demand in the US and China while US oil production remained near record highs.

World market sugar prices also declined to US$26.04 cents per pound as global sugar supplies rose with higher production output in Brazil.

RBF says on the contrary, gold prices rose to record highs and settled at US$2,057.20 per fine ounce at the end of November, as geopolitical conflicts and market expectations of interest rate cuts by central banks boosted the demand for the safe haven asset.

World food prices, as measured by the FAO Food Price Index, remained unchanged in November from the previous month, as increases in the price indices for vegetable oils, dairy products and sugar offset the decline in prices of cereals and meat.

WAF considers proposal to increase water tariff and have full corporatisation
The Water Authority of Fiji is considering full corporatisation and increasing water tariffs to make it more viable and to reflect the true cost of se...
16 hours ago
3 people arrested following meth seizure in Koronivia
Three men were arrested following a raid in Koronivia where white substances believed to be methamphetamine were seized on Friday night. Assistant ...
2 hours ago

SGS alumni gather for heartfelt thanksgiving service as part of 60th+4 Diamond Jubilee Celebration
Former students of Suva Grammar School gathered in numbers yesterday for a thanksgiving church service which is part of the school’s 60th+4 Diamond ...
2 hours ago

Rescue teams search for Iran's president after helicopter crash
A helicopter carrying Iran's President Ebrahim Raisi and Iranian Foreign Minister Hossein Amir-Abdollahian has been involved in an ...
3 hours ago

UNESCO looks at curriculum development on drugs from early childhood to secondary education
The United Nations Educational, Scientific and Cultural organizations are working with the National Substance Abuse Advisory Council in looking at ...
16 hours ago

Injectable drugs contribute to 25% of HIV cases this year – Dr Devi
The Ministry of Health has noticed an increase in injectable drugs that contributes to almost 25 percent of HIV cases this year however this needs to ...
16 hours ago

fijivillage Straight Talk with Vijay Narayan
Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
Ministry of Home Affairs Talanoa Session on Illicit Drugs and Substance Use Disorders in Fiji
The pervasive threat of illicit drugs has emerged as a pressing concern, rapidly infiltrating and destabilizing our society therefore the Republic of ...
3 days ago

Bainimarama and Qiliho hearing in dismissal of 2 police officers case
Acting Director of Public Prosecutions John Rabuku says he wants the hearing of former Prime Minister Voreqe Bainimarama and suspended Police ...
3 days ago

Sayed-Khaiyum case on alleged payment of Saneem's taxes without proper approval
It is alleged that between the 30th of June, 2022 and the 12th of July, 2022 in Suva, whilst being employed in the civil service as the Acting Prime ...
3 days ago