Hike in prices of goods and services

Prices of goods and services have increased in the Maldives as a result of the economic decline caused by the COVID-19 pandemic.

According to the central bank, Maldives Monetary Authority (MMA)’s quarterly business survey, a spike in prices of tourism services, construction sector, wholesale and retail trade was recorded over the third quarter of the current year through July to September.

The survey shows the cost of transportation and communication services have declined, although the costs incurred in operating the businesses have increased. The survey predicted that the prices of goods and services in all sectors except the construction industry will likely increase further during the fourth quarter.

MMA said the financial status of all sectors except the wholesale and retail business sector had suffered a blow during the third quarter compared to the previous quarter. In that regard, the construction sector suffered significantly while the tourism sector remained stagnant compared to the previous quarter. However, business is expected to pick up for the tourism, wholesale and retail sector during the last quarter of the year, said the report.