Food inflation hits six percent

The Maldives food inflation rate has risen from 5.2 percent to six percent.

Statistics by Maldives Monetary Authority (MMA) reveal food inflation rose by 0.8 percent in July compared to the previous month.

Despite the increase in food prices, total inflation of Maldives fell to 2.5 percent from 5.2 percent. The overall inflation rate has decreased by nearly 50 percent due to the housing sector and the decline in water and electricity prices. Water and electricity are government subsidized services, which saw a fall in the rate of inflation to 0.8 percent from 12 percent in July. In addition, transportation inflation has also declined.

Food inflation stood at 1.9 percent at the beginning of the year, which has since risen to six percent in six months. Maldives inflation is currently at its highest level in six years.

Global inflation has seen a rise due to the Ukraine-Russian war. Statistics show that the global inflation rate has risen by an average of 8 percent. According to statistics released by the World Bank, food inflation in South Asia is currently at 23 percent. The World Bank estimates food inflation to rise in the coming months of 2022.