Prices of Essential Commodities Rise Nearly Three Percent Last Month

The price of essential commodities in the Maldives rose by nearly three percent in December, driven primarily by an increase in food prices, according to the latest Consumer Price Index (CPI) report.

Published by the Maldives Bureau of Statistics on Monday, the report shows a 2.95 percent year-on-year rise in the CPI for essential commodities in December, with a month-on-month increase of 1.16 percent. Food prices recorded the largest spike, rising 1.57 percent compared to the previous month and 3.25 percent year-on-year.

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Beverages became 0.18 percent more expensive month-on-month and 2.87 percent higher than in December 2024. Personal care products saw a 0.23 percent month-on-month increase and a 3.50 percent year-on-year rise, while the price of gas and other fuels grew 0.10 percent month-on-month and 1.69 percent year-on-year.

The Maldives, which relies heavily on imports, continues to face rising inflation amid high national debt and a shortage of US dollars. Despite an official exchange rate fixed at MVR 15.42, traders and others have turned to the black market, where rates exceed MVR 20. Economists have identified this dollar shortage as a key factor behind the rising cost of commodities.

Economic Minister Mohamed Saeed has previously attributed inflation to decisions made by the former administration, including money printing.

To address food price increases and strengthen food security, President Dr. Mohamed Muizzu’s cabinet approved the bulk import of 23 essential food items through the State Trading Organization (STO) in September. The STO began selling the imported goods in October. The items include onion, ginger, carrots, lettuce, potato, cabbage, pumpkin, garlic, eggplant, apple, orange, bananas, lime, mango, watermelon, grapes, papaya, chili, chicken eggs, coconut, dhal, and turmeric.