SUVA, Sept. 25 (Xinhua) -- Fiji's inflation rate accelerated to 7.6 percent in August from 5.7 percent in July, driven largely by higher food, energy and kava prices, the Reserve Bank of Fiji (RBF) said on Friday.
The central bank's board has maintained the overnight policy rate at 0.25 percent, saying the decision balances growing inflationary pressures with the need to support economic activity.
RBF Governor and Board Chairman Ariff Ali said inflation is expected to remain above 6 percent through the end of the year. He cited global commodity prices and the developing El Nino weather pattern as potential sources of further price pressures.
Despite the inflationary pressures, the RBF said Fiji's economy continues to perform broadly in line with expectations.
The economy expanded by 2.5 percent last year, with tourism, consumer spending and construction among the main contributors to growth.
The RBF said Fiji's foreign reserves stood at about 3.9 billion Fijian dollars (around 1.7 billion U.S. dollars) as of Wednesday, sufficient to cover around 5.5 months of retained imports, providing a buffer against external shocks.
Ali said the economic outlook has become more challenging, particularly given the expected impact of El Nino on growth next year. ■
