Consumer Price Index - April 2022
HIGHER PRICES WERE NOTED FOR FOOD IN PARTICULAR AND REMAIN THE PRIMARY DRIVER OF OVERALL INFLATION
The Consumer Price Index (CPI) is compiled to indicate the average changes in the prices of goods and services purchased by households nationwide with monthly price collections carried out in the urban areas and the index is currently taken to represent price changes in rural areas as well.
In the latest release by the Fiji Bureau of Statistics, the average annual rate of inflation for the twelve months to April 2022 [i.e., comparing the average CPI for the 12 months from May 2021 – April 2022; with the average for the 12 months from May 2020 – April 2021] stands at 1.6 percent while the month- on- month inflation rate [compared with April 2021] stands at 4.7 percent.
There are two measures of inflation used in Fiji. One compares the average CPI over the past twelve months with the average CPI over the previous twelve months, while the other compares the CPI in the current month with the CPI in the comparable month of the previous year.
There were no price changes recorded for Communication and Education. Fiji is not the only country experiencing higher inflation. Higher global and trading partner inflation eventually trickles down to us.
Surging energy and food prices have continued to lift inflation around the world ....
Economic Review
As stated in the latest Economic review by Reserve Bank of Fiji, the annual inflation has been rising throughout the second half of 2021 into 2022.
Higher prices were noted for food in particular and remain the primary driver of overall inflation.
The recent increase in bus fare, fuel prices, prices of bread etc will push inflation in May to more than 5% before it moderates towards the end of the year
Price increases were expected to ease as economies recovered from the pandemic, but surging energy and food prices have continued to lift inflation around the world.
After Russia invaded Ukraine, predictions about inflation were torn up and reset much higher considering rising commodity prices.