Mal

The rate of inflation of Malé has increased for June 2012.

The monthly Consumer Price Index (CPI) report published by the Department of National Planning shows that the inflation rate went down by 1.95 percent from April to May 2012.

The comparison between May and June 2012, however, shows that it increased by 4.07 percent.

The annual inflation rate also increased by 14.66 percent.

The report indicates that the rise in inflation rate is due to hikes in the prices of fish, electricity and water. Prices of food products, garments, and services at cafés have also increased.

The highest inflation rate observed this year was 15 percent in April. It was at 12 percent in the beginning of 2012, and went down after May 2012.

The reason for this decrease is the change in prices due to changes in import duty regulations. However, as pointed out by the Ministry of Economic Development, the change in import duty regulations has not resulted in favourable changes in prices.

The inflation rate of Malé is estimated to rise in the remaining months of 2012, especially during Ramadan when price hikes are observed every year.

The government has taken measures, through State Trading Organisation (STO), to hold prices at the same level during Ramadan.