Maldives inflation rate has surged to 5.2%, marking a seven-year high for the island nation.
Statistics published by Central Bank, Maldives Monetary Authority revealed that the inflation rate by May 2022 was at 2.5%. However, by the end of June, the rate of inflation had risen by 2.7% and stood at 5.2%.
This marks the first time the inflation rate had risen to such levels, which marks a record seven-year high for the country. Within the past seven years, the highest rate of inflation was observed in 2017 when the rate stood at 4.2% during the months of March, April and May.
The rate surged once again in 2021 during the month of April, where it stood at 3.3%. However, by the beginning of 2022 the rate came down to 0.2%. As per statistics, Rent, Transport and Energy Related Items were the major category contributors to inflation.
MMA had previously predicted that due to the rising prices of fuel globally, the inflation rate in the Maldives would spike by 3%. They further noted that the national reserves will reduce due to the increased expenditure on imports.
Governer Ali Hashim also predicts that the country would have to deal with higher rates of inflation till next year. He had noted during a Parliament Committee on Public Finance meeting that the biggest concern is the upward trend in inflation rates, including inflation in food prices.