Transportation Costs Rise 9% as International Airfares Increase, Stat Shows

Transportation costs in the Maldives increased by 9.35 per cent in May compared with the same month last year, mainly due to higher international airfares, according to the latest Consumer Price Index (CPI) report published by the Maldives Bureau of Statistics.

The report showed that the overall inflation rate across all CPI categories rose by 2.54 per cent year-on-year. On a monthly basis, transportation prices increased by 1.12 per cent between April and May, making the sector the largest contributor to annual price increases.

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The Statistics Bureau attributed the rise primarily to a 17.75 per cent increase in international airfares, alongside a 1.08 per cent increase in sea transport costs.

Prices of essential goods also continued to rise during the month. The cost of essential commodities increased by 6.63 per cent compared with May last year, while gas and fuel prices recorded the largest increase at 19.9 per cent.

Food prices rose by 6.51 per cent year-on-year, while beverage prices increased by 5.15 per cent.

The Maldives is scheduled to repay USD 1.1 billion in external debt this year, with USD 524.68 million already repaid in April. The World Bank has previously projected that these debt repayments would place pressure on the country’s foreign exchange reserves, contributing to higher prices for imported goods during the year.