Fuel prices drag inflation down

Fiji experienced a notable drop in inflation in July, largely due to a significant decrease in fuel prices and cheaper airfares, according to data from the Fiji Bureau of Statistics. The Consumer Price Index (CPI) fell by 1.1 percent compared to the previous month.

Transport costs saw the most substantial decline, dropping by 6.6 percent. This was directly attributed to the lower cost of fuel and air travel. Housing costs also contributed to the decrease, falling by 1.4 percent.

However, the relief in transport costs was offset by rising prices in other essential categories. Food prices increased by 0.5 percent, with specific items like bread, cereals, fish, seafood, fruits, and vegetables becoming more expensive. Healthcare costs also climbed by 1.1 percent, largely driven by an increase in medicine prices.

Overall, the annual inflation rate for the 12 months leading up to July stood at 0.2 percent. When compared to July of the previous year, inflation was recorded at 5.7 percent, indicating a considerable slowdown in price increases over the most recent month.