RBF forecasts inflation to reach 2% by the end of 2021 after accounting for elevated external price pressures

The Reserve Bank of Fiji forecasts inflation to reach 2 percent by the end of 2021 from -2.6 percent at the end of 2020 after accounting for elevated external price pressures, especially for energy and food.

RBF Governor, Ariff Ali says while domestic inflationary pressures remain contained, for now, the surge in global commodity prices amid persistent supply shortages has filtered through to the prices of some goods and increased the contribution of imported inflation to overall headline inflation.

Meanwhile foreign reserves remain at comfortable levels at $3.099 billion, sufficient to cover 10.7 months of retained imports and are projected to remain adequate in the short to medium term.

The RBF Governor affirms that the RBF will continue to support the economic recovery through its conduct of monetary policy, remain vigilant in assessing evolving domestic and international economic scenarios, and align monetary policy as and when required.