Brace for higher prices, FCCC warns

Fijians are being warned to brace for higher prices on everyday goods as escalating conflict in the Middle East disrupts global supply chains and drives up freight and fuel costs.

In a market advisory issued yesterday, the Fijian Competition and Consumer Commission (FCCC) said Fiji’s heavy reliance on imported goods left the country highly vulnerable to global shocks linked to tensions in the Middle East.

The commission warned that disruptions to shipping routes, rising insurance premiums and global fuel volatility were expected to increase costs across several sectors in the coming weeks.

“Fiji faces an inflationary shock across multiple sectors,” the advisory stated.

The FCCC said the global freight index had already increased by more than 35 per cent compared with the same period last year, while shipping vessels rerouted through the Cape of Good Hope were adding between 10 and 14 days to transit times.

The advisory linked the pressure to disruptions around the Strait of Hormuz and the Red Sea, two major global shipping and energy chokepoints.

“Nearly 20 per cent of the world’s seaborne oil and global Liquefied Natural Gas supplies are affected by disruptions in this region,” FCCC said.

The commission warned the impact could be felt in agriculture, fuel, construction, manufacturing and retail sectors.

In agriculture, higher fertiliser costs were expected to increase production expenses and place additional pressure on food prices later this year.

Construction projects could also face rising costs due to increases in aluminium and other imported materials, while food and beverage manufacturers were expected to experience higher packaging and input costs.

Retailers and supermarkets were also likely to face higher landed costs as freight charges increased.

The FCCC said Fiji imported about 80 per cent of its consumer goods, including fuel, food and essentials, making the country particularly exposed to international supply disruptions.

The commission said Government and the FCCC had activated several measures to cushion consumers from price pressures, including fuel monitoring, price surveillance and enforcement action against unjustified price increases.

“Traders found exploiting freight-related cost increases as a pretext for unjustified price hikes will face strict enforcement action.”

The advisory urged consumers to plan ahead, avoid unnecessary stockpiling and report unreasonable price increases.

Businesses were also encouraged to secure supplies early and maintain clear records to justify any price adjustments.

The FCCC said it would continue monitoring markets closely to ensure any increases remained fair, transparent and evidence-based.