WHY FOOD PRICES IN FIJI ARE DECREASING DESPITE STEEP WORLDWIDE INFLATION
A new report from the Fijian Competition and Consumer Commission has shown that food prices in Fiji are decreasing, with a number of contributing factors.
The United Nations Food Price Index for August 2022 showed that food prices in the country are dropping, with a range of contributing factors towards this. The Fijian Competition and Consumer Commission has observed decreases in the price of milk powder, with analysis of the third quarter of 2022 forecasting further price reductions in flour, biscuits and bread.
The commission has said the removal of Value Added Tax from essential items, as well as Inflation Mitigation Assistance, have been helpful in assisting consumers that are affected by price rises.
It also said it is working to protect the consumer rights of people in the country, “ensuring a fair market for both consumers and traders alike”.
Essential goods derived from wheat, like flour and bread, were recently impacted by the Russia-Ukraine war. However, the commission has said that despite global circumstances, there has been a limited impact in Fiji.
In many countries around the world, food price inflation has ranged from 5% to 30%. That figure is reportedly 3.3% in Fiji, compared to 6.8% in neighbouring New Zealand and 5.9% in Australia.
“We have started seeing reductions now with milk powder and a third-quarter analysis shows that with current trends holding, a reduction in the price for flour, biscuits and bread will be reflected by the end of September 2022, to be made effective in October 2022,” a statement from the Fijian Competition and Consumer Commission read.