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Inflation up 1.7 percent in October due to subsidy cut

Fathmath Shaahunaz
05 December 2016, MVT 09:56
Man draws cart loaded with goods from STO warehouse.
Fathmath Shaahunaz
05 December 2016, MVT 09:56

Inflation spiked by 1.7 percent in October as a consequence of the government cutting subsidy for staple food since October 1, shows statistics of the Maldives’ central bank.

According to the Maldives Monetary Authority (MMA)’s monthly economic review, inflation rates had gone up from 0.4 percent in September to 1.7 in October. The reason was attributed to the 100 percent increase in staple food prices as well as the spike in house rent.

Following the government’s decision to limit staple food subsidy only to the needy, prices per kilogram changed from MVR 3.98 to MVR 7.96 for rice, MVR 4 to MVR 8 for sugar and MVR 2.96 to MVR 5.96 for flour.

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