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Low Inflation Assisted By Free Education And Lower Commodity Prices

A major contributor to the low inflation rate of 0.1 per cent recorded in 2014 is Government’s free education scheme, says Deputy Governor of Reserve Bank of Fiji, Ariff Ali.
23 May 2015 08:47
Low Inflation Assisted By Free Education And Lower Commodity Prices
From left: Chief Advisor to the Governor of the Reserve Bank of Fiji, Lorraine Seeto, Deputy Governor of RBF, Ariff Ali, ABC’s Pacific Economic & Business Reporter, Jemima Garrett and Government Statistician, Epeli Waqavonovono during a four-day workshop on Budget Reporting at the Tanoa Plaza Hotel in Suva. The workshop which ended yesterday was organised by Australia’s Pacific Media Assistance Scheme (PACMAS) photo: RACHNA LAL

A major contributor to the low inflation rate of 0.1 per cent recorded in 2014 is Government’s free education scheme, says Deputy Governor of Reserve Bank of Fiji, Ariff Ali.

Mr Ali made these comments while addressing journalists during the Budget Reporting Workshop organised by Australia’s Pacific Media Assistance Scheme (PACMAS) at the Tanoa Hotel Plaza in Suva.

Mr Ali said based on the basket of goods in the consumer price index calculated by the Fiji Bureau of Statistics, approximately 10 per cent of people expenditure goes towards education.

“Given the free education policy which was implemented last year, parents did not have to pay for school fees,” he said.

“Hence, the lower inflation out turn last year was partly due to this Government initiative.”

Mr Ali added the lower inflation out turn was also because of falling global commodity prices such as fuel.

“Inflation in April 2015 rose 1.5 per cent. This increase is due to the tapering of the free education policy,” he said.

“Reserve Bank of Fiji forecasts inflation to be below three per cent this year and this will be assisted by the lower global food and oil prices.”

Feedback:  rachnal@fijisun.com.fj

 



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