Tobacco products biggest contributor to inflation

Tobacco products have emerged as the largest contributor to inflation in Maldives, according to the Maldives Monetary Authority (MMA).

Data released by the central bank shows that tobacco accounted for 2.11 percentage of the annual inflation rate. This was followed by fruits, which contributed 0.61 percentage points, and fish, accounting for 0.36 percentage points.

Month-on-month inflation stood at 3.9 percent in September, marking a 0.4 percentage point decline from August.

MMA said the largest contributor to monthly inflation was the increase in electricity prices.

Inflation peaked this year in April, reaching 5.9 percent, compared to 5.6 percent at the beginning of the year. September recorded the sharpest decline in inflation so far this year.

Regional data shows inflation in the Male' region stood at 3.3 percent in September, while inflation in the atolls was higher at 4.8 percent.

MMA noted that food prices were the main driver of inflation outside the capital.