Inflation hits 15 percent: Department of Planning

The inflation rate in Male’ for August 2012 reached 15.04 percent, according to statistics from the Department of National Planning.

According to the department, tobacco prices increased 71 percent, fish products 68 percent, and restaurant and cafes by 32 percent. The rises were attributed to changes in the dollar, which is currently pegged to the rufiya within a 20 percent of MVR 12.85. In real terms, the rate has remained fixed at the maximum limit of MVR 15.42 and remains nonexchangeable, forcing importers to rely on inconsistent black market dollar exchanges of up to MVR 17-18.

Meanwhile, local business tycoon, media owner, MP, Jumhoree Party (JP) leader and member of the Judicial Services Commission (JSC), Gasim Ibrahim, has warned that the dollar exchange rate of the Maldivian rufiya may rise to MVR 20 by the end of the year – a 25 percent increase.

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