Maldives inflation rises in 2024 third quarter: MMA

The Maldives Monetary Authority (MMA) has reported that the inflation rate, which was at 0.3 percent during the second quarter, rose to 1.3 percent in the third quarter of this year.

The central bank released its Economic Quarterly Bulletin, in which it highlighted this inflation rise can be mainly attributed to the price changes in the energy sector.

Besides energy, health services and food observed the highest price jump during the third quarter.

Energy sector observed a price index jump of 3.3 percent during the review quarter whereas in the second quarter it had slipped 9.6 percent. MMA highlights energy sector prices increased mainly owing to the 4.7 percent increase in electricity consumption, but highlighted the decline in petrol prices during the quarter.

From the category of food, fish prices saw a 10.4 percent price bump while vegetables saw an increase of 17.4 percent, which MMA said was mainly due to supply constraints of lemon, onion, and chili.

Health sector prices increased mainly due to the price jump in appointments for outpatient services.

The central bank projects inflation to increase to 5.2 percent during the second quarter next year once subsidy reforms are implemented, while inflation would be maintained at 4.7 percent during the last two quarters.

The reforms include omitting food and electricity subsidies and introduce a targeted system.