Inflation rates are up and will increase further next year, MMA predicts.
Inflation rates went up in the third quarter of this year, said central bank Maldives Monetary Authority (MMA).
The MMA said in its quarterly economic bulletin that inflation rose by 1 percent in the third quarter compared to the second quarter of this year.
As per the report, inflation was initially at 0.3 percent in the second quarter, but rose to 1.3 percent in the following quarter.
Food, healthcare and energy were among the sectors that saw the biggest price increases during the quarter.
Among food items, fish prices rose by 10.4 percent while vegetable prices went by 17.4 per cent.
MMA also said that fruit and vegetable prices rose in the quarter due to shortages in supply of onions, peppers and lemons.
The report said the main reason for the increase in health services prices was the high cost of consultations or doctor visits. However, medicine prices fell last quarter compared to the second quarter.
The energy sector, which fell 9.3 percent in the second quarter, rose 3.3 percent last quarter. The main reason for this, according to the MMA report, was the 4.7 per cent increase in electricity prices.
Despite higher electricity prices, petrol prices fell last quarter, the report said.
The MMA report predicts that commodity prices will rise above the Finance Ministry's forecast next year due to the change in subsidies.
According to the budget, inflation is expected to be 3.9 percent next year.
However, the MMA report said inflation is expected to rise 5.2 percent in the second quarter of next year and slightly decrease to 4.7 percent in the third quarter of next year.
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