Inflation rate in the Maldives has surged to 5.2%, the highest in seven-years.
Statistics published by Maldives Monetary Authority (MMA) 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 marked the first time the inflation rate had risen to such levels in seven-years.The most recent highest rate of inflation was observed in 2017 when the rate stood at 4.2% during the months of March, April and May.
The inflation rate rose 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, increase in Rent, Transport and Energy Related Items were the major category contributors to inflation.
MMA had previously cautioned due to the rising prices of fuel globally, the inflation rate in the Maldives would jump by 3%. They further noted that the national reserves will reduce due to the increased expenditure on imports.