There are a lot of misconceptions about Fiji’s inflation rate for the end of the year.

Minister for Finance Professor Biman Prasad says that while the Reserve Bank of Fiji has announced that inflation is expected to be around six percent, some people, including politicians, are using all sorts of data to interpret the country’s inflation rate and cause unnecessary concern.

Prasad says the most important thing to remember is that the economy is rebounding strongly from the COVID-19 pandemic, led by the tourism industry as well as other sectors.

“Then you look at consumption; of course it’s driven by job growth and increases in salaries and wages in the formal sector. In fact, compared to 2019, the increase in salaries and wages in the formal sector is up by about 25 percent.”

Prasad says apart from the economic rebound, the country is also experiencing job growth, which will help generate financial growth in Fiji.