Inflation in the Maldives rose to 3.8 percent at the end of June, according to the Maldives Monetary Authority (MMA). The figure marks a significant increase compared to just 0.7 percent during the same period last year.
The rise was largely driven by higher restaurant prices, rental costs, and food inflation, which stood at five percent. Specifically, food prices rose by 4.6 percent, while fish prices increased by 6.4 percent.
Restaurant and housing sector inflation has been climbing steadily since November last year. However, overall inflation saw a slight quarterly decline—falling to 29.4 percent in Q2 from 29.5 percent in Q1—though still sharply higher than the previous year.
Not all sectors experienced price hikes. Communication costs dropped by 5.3 percent, and transportation prices dipped slightly by 0.1 percent.
Meanwhile, analysts warn that further monetary tightening by the Maldives central bank could push up commodity prices and weaken the rufiyaa.
The rise was largely driven by higher restaurant prices, rental costs, and food inflation, which stood at five percent. Specifically, food prices rose by 4.6 percent, while fish prices increased by 6.4 percent.
Restaurant and housing sector inflation has been climbing steadily since November last year. However, overall inflation saw a slight quarterly decline—falling to 29.4 percent in Q2 from 29.5 percent in Q1—though still sharply higher than the previous year.
Not all sectors experienced price hikes. Communication costs dropped by 5.3 percent, and transportation prices dipped slightly by 0.1 percent.
Meanwhile, analysts warn that further monetary tightening by the Maldives central bank could push up commodity prices and weaken the rufiyaa.
