In January 2023, the rate of inflation in the Maldives, as a percentage of the Consumer Price Index (CPI), increased by seven percent on all food items.

According to the National Bureau of Statistics, prices for all food groups went up by 7.82 percent. This means that the rate of inflation for food items went up by 75 percent this year compared to the overall rate of inflation for all food groups, which was only 1.9 percent.

Besides food, prices on all consumer items also rose monthly, with prices of all items rising by 0.96 percent in January compared to December 2022, marking the strongest month-on-month inflation bump.

The year-on-year change of the inflation rate saw a 3.99 percent increment, the highest it has been in the past four years. The largest price hike was observed in cafes and restaurants, with a 4.3 percent increase from December 2022 to January 2023.

The hike in the price of all consumer items reflects the increase in the General Goods and Services Tax (GGST) to 8 percent from 6 percent, which became effective on January 1, 2023.

According to the World Bank, the inflation rate for all food groups in South Asia is currently above 23 percent, and the organisation predicts that inflation will rise even more this year.