Maldives sees 8% surge in transport costs; food prices up 5%

Transport prices in the Maldives rose by over eight percent in August compared to the same period last year, while food and beverage prices surged by nearly six percent.

The monthly Commodities Price Index (CPI) report released by the Maldives Bureau of Statistics on Monday shows the overall prices of commodities rose by 0.76 percent in August compared to the same period last year, but declined by 1.15 percent compared to July.

The biggest year-on-year increases were seen in transport prices and food and beverage prices.

While prices in the transport group fell by 0.73 percent in August compared to the previous month – mainly due to a decrease in price of international airfare, it shows a sharp 8.06 percent increase compared to the same period last year.

Meanwhile, food and beverage prices rose by a slight 0.96 percent in August compared to July, but a sharp 5.69 percent compared to the same period last year.

The price of fruits and vegetables rose sharply in August from the previous month, with the price of carrots rising by 16.75 percent, oranges by 11.62 percent, watermelon by 9.58 percent, sweet potatoes by 8.63 percent, and cucumber by 7.94 percent.

Meanwhile, the price of tuna also rose by a sharp 5.65 percent compared to the previous month.

This was partially reset by a decrease in price of onion, which fell by 15.50 percent, and lime, which fell by 7.37 percent.

The Maldives is a small island nation almost entirely dependent on imports, marking it particularly vulnerable to global shocks, including the ongoing conflict in the Middle East.

The Asian Development Bank (ADB) projects Maldives’ inflation will rise by 2.2 percent this year, and 2 percent next year.