0.67 percent rise in inflation in May

Inflation in the Maldives rose to 2.5 percent in May, the central bank, the Maldives Monetary Authority (MMA), said.

According to the MMA, inflation stood at 1.2 percent as of April.

Inflation rose in May due to increased prices of petrol used for transportation, as well as the prices of restaurant and cafe services, meat, and fruits. Increased prices of medicines, tobacco, and seafood also contributed to the rise in inflation.

Inflation in May alone rose by 0.67 percent.

As commodity prices and inflation rise, the government has decided to increase GST and TGST to increase state revenue. In this regard, GST will be increased from six percent to eight percent and TGST from 12 percent to 16 percent from January next year.

Experts believe that the increase in GST and TGST will lead to a further rise in commodity prices and higher inflation.