Inflation remains negative for 7 months, economic growth likely to be revised – Prof. Prasad
Fijians are continuing to feel the effects of falling prices, with inflation remaining in negative territory for the past seven months.
While responding to a question in Parliament, Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says the inflation rate was recorded at minus 3.5 percent in August this year.
He says monthly inflation for the period January to August this year has averaged negative 1 percent which is a clear indication that overall consumer prices have fallen when compared to the same period in 2024.
Professor Prasad says the Ministry’s Macroeconomic Committee forecast projected growth of 3.2 percent for the year.
He says the Committee is currently reviewing the GDP projections, and revised figures will be released in November this year.
He says that based on recent indicators, he is confident that the current growth is likely to be revised upwards.
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He says the declining inflation trend reflects the impact of the VAT reduction on prices.
Professor Prasad emphasised that as the government moves forward with the implementation of the current fiscal year’s budget, it is imperative to put in place mechanisms to assess the impact of budgetary policies over the next six months.
He says macroeconomic indicators such as GDP growth, inflation, employment levels, and consumer confidence will be closely monitored.
The Deputy Prime Minister also stressed that a Price Monitoring and Enforcement Taskforce has been established under the leadership of the Ministry of Finance, in collaboration with the Fijian Competition and Consumer Commission, the Consumer Council of Fiji, and the Fiji Revenue and Customs Service.
He adds that the taskforce role is to ensure that the benefits of tax reductions are passed on to consumers and to promote fair market practices that safeguard consumer welfare.
Leader of the Opposition, Inia Seruiratu, questioned him on the effectiveness of the taskforce, emphasising that when Professor Prasad was in Opposition, he would consistently question the figures presented by the government.
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Professor Prasad responded that this government has provided the most transparent, accountable, and independent assessments of the economy, but the Opposition seems unwilling to acknowledge the positive outcomes achieved.
He says the taskforce is performing well, and that while it is not possible to police every small corner shop in the country, surveillance mechanisms are in place to identify businesses that are reluctant to pass on price reductions to customers.