The Reserve Bank of Fiji says headline inflation surged to a 5.8 per cent in November, as higher prices were noted across most categories.
In its December Economic Review, the Central Bank said that economic activity has been healthy despite persistent headwinds in the markets.
Looking at Fiji economy, RBF said the thriving tourism sector, strong remittances and resilient domestic demand, had offset the drag from elevated price pressures and softer performance in the primary and natural resource.
The Bank also recorded that the labour markets have remained tight, driving economic rebound and increased worker emigration – the number of job vacancies rose by 30.3 per cent from January to October.
Looking at the financial sector, the Reserve Bank said lending to the private sector rose by 6.1 per cent in November, supported by higher lending to both business entities and private individuals.
“Liquidity in the banking system remains adequate at $2.1 billion.”
“Foreign reserves are adequate at $3.4 billion, sufficient to cover 5.7 months of retained imports of goods and services.”
The Central Bank says that geopolitical conflicts and monetary policy tightening posed risks externally, while the domestic markets are at risk due to climate change, natural disasters, labour shortages and tourism capacity constraints.
