Yaqona and Fuel prices are two drivers of the negative inflation in prices - RBF Governor

Reserve Bank of Fiji Governor Ariff Ali says yaqona and fuel prices are two drivers of the negative inflation of prices in the last 10 months.

While speaking at the Post Budget Discussion organised by the Fiji Chamber of Commerce and Industry at GPH, Ali says all central banks in the world have a key mandate which is price stability to ensure that inflation is low.

He says most of the people have been saying that one reason why the inflation rate has been in the negative territory for the past 10 months is that the economy is slow.

The Governor says yaqona accounts for 2% of the consumer price.

Ali says after TC Winston, prices of yaqona increased from $40 to $50 kg to $150 kg.

He says if prices increase by 100 or 200% it means that the prices of yaqona will increase but now yaqona prices have been reduced by 50% which has contributed to the reduction in inflation.

He adds that world oil prices have significantly fallen.

The Governor says in the next 12 months, inflation will still be in the negative territory and initially they are expecting inflation to be plus 1 by the year-end.