Wolves At The Door

Two sandwiches and a coffee for $47 in the capital city is steep for a small place like Fiji, however niche the market may be.

But that’s the reality of Fiji’s inflation, where prices indicate a market-specific audience.

It, however, does not add up when participants of this year’s Top Executive conference must each fork out 50 per cent more on cost of conference facilities, in addition to room rates that skyrocketed by 75 per cent.

Because, while that is a mix of an increase in VAT and inflation - room rates for example that jump from $400 a night to $700, suggest something else may be at play.

Obviously, VAT from nine per cent to 15 per cent would account for some, and inflation for another three per cent.

Where though does the rest of the additional burden come from?

The inflation rate cannot be three per cent as many have been led to believe. All the signs hover over double digits within the range of 10 per cent to 20 per cent.

The jury is still out on price gouging, amid glaring escalating prices – a largely Suva-centric situation, although high demand may give credence to the situation.

The writing was on the wall when national data failed to match reality earlier this year – something the Bureau of Statistics has yet to answer for.

If Ports Authority of Fiji claims a 23 per cent reduction in container movement, while the pundits say the imminent and painful economic crash is foreseen somewhere between 2025 and 2026, then the wolf’s at the door.

That wolf is held back on the strength of tourism and remittances – while the masses are being dupped over imaginary low inflation rate.

Start with the World Bank, they think it’s six per cent, but they have to rely upon data from Fiji statisticians, which is the heart of the problem.

It’s the kind of reality check we could expect from a Government-appointed Fiscal Review team.

Alas, there was not many strong minded business owners on board that panel. Thus, the pixie dust report that resulted from that committee.

We have not learnt from the challenges of COVID-19, which should, by now, have prepared us for the looming doom on the horizon.

Try telling that to the man on the street, who among many like-minded vendors and grassroots, are of the notion that the anomalies are all VAT-induced.

Story By: Frederica Elbourne

Feedback: frederica.elbourne@fijisun.com.fj