August inflation drops: Report
Wednesday September 05, 2007

Inflation in August is reported to have dropped to 5.1 per cent, down from 6.4 per cent in July. Inflation had topped 7.1 per cent in June.

A statement from the Department of Information says this is a "huge reduction of 2 per cent within three months".

In July, Reserve Bank of Fiji governor Savenaca Narube had noted that inflation (at 7.1 per cent) was at its highest level for many years and was "yet to peak". The bank had projected year-end inflation to be around 7 per cent.

However, interim Finance Minister Mahendra Chaudhry early this week said most of the inflation in Fiji is imported inflation and "by the end of this year it is expected to have fallen from the current seven to four per cent".

The International Monetary Fund is also expected to meet with the interim government this month to discuss the reasons behind Fiji's sudden surge in inflation (in the past months) and other economic issues.

The Fiji Islands Bureau of Statistics report shows that inflation rate for the past months were: January, 2.6 per cent; February, 3.6 per cent; March, 2.9 per cent; April, 5.7 per cent, May, 6.6 per cent, June, 7.1 per cent, July, 6.4 per cent and August, 5.1 per cent.

The All Item Consumer Price (CPI) for the month of August 2007 registered a decline of 0.8 % over July 2007 (149.5) and now stands at 148.3.