November saw sharp price surge, financial strain expected to spiral further for households
The prices of tobacco products, food items, and transportation sectors have increased significantly
A vendor sells bananas and other sundries at his stall in the fish market in Male, Maldives on 5 December 2023
The latest Consumer Price Index (CPI) issued by the Maldives Bureau of Statistics reveals that inflation in the Maldives rose significantly in November, causing a substantial increase in prices.
According to the information disclosed by the Statistics Bureau, inflation in the Maldives has increased considerably.
Compared to October 2024, the CPI for all groups increased by 2.47 percent. This is a significant increase compared to the previous month when inflation slightly decreased by 0.16 percent.
The rise in CPI means that the cost of living is increasing rapidly, and the prices of daily necessities are being affected negatively.
In November 2024, the Consumer Price Index (CPI) excluding fish products increased by 2.62 percent. This is noted as a substantial increase compared to October. Statistics show that prices in the Maldivian market have risen sharply compared to the beginning of 2024. As a result, households are likely to face significant difficulties in meeting their expenses due to the increased costs of daily goods and services.
Prices in many categories increased significantly in November. Specifically, the prices of tobacco products, food items, and transportation sectors.
The price of tobacco products has increased by 98.12 percent. This is mainly attributed to the changes in import duties on tobacco products that came into effect in November 2024. The price of cigarettes has nearly doubled. Similarly, the prices of restaurants and cafes have gone up by 15.81 percent.
In addition to this, the prices of sea transportation have increased by 5.13 percent, resulting in higher costs for sea transport services.
Other categories that saw price increases include footwear by 2.66 percent, fruits by 0.64 percent, and clothing by 0.94 percent.
The CPI figures for November 2024 show that while the prices of vegetables and mobile communication services have decreased, overall, the statistics indicate that the cost of living has increased. As inflation is expected to remain high at the beginning of 2025, households are likely to face significant challenges in managing their expenses.
Further, due to upcoming changes in the subsidy model, it is possible that the prices of essential goods and services may increase further. This is expected to worsen the financial difficulties faced by households.
