The Maldives Monetary Authority (MMA) has officially announced that there will be a downward trend in the prices of goods for the remainder of the current year.

Based on the recently published quarterly report by MMA, it is projected that the inflation rate in the Maldives will reach 3.3% by the conclusion of the current year. 

This figure represents a 0.6% decrease compared to the first quarter of the year. Notably, the MMA's previous estimation from the previous year anticipated an inflation rate of 5.4% by year-end, indicating a significant reduction of 2.1%.

The MMA has noted that despite the 3.9% inflation rate during the first quarter, inflation is expected to decrease in the remaining quarters. This is attributed to the reduction in global oil prices, which is causing a general decrease in the prices of various goods and services.

The initial surge in the price of goods at the beginning of this year was primarily due to higher costs associated with travel, rent, and restaurants. The key contributing factor behind this increase was the implementation of a Goods and Services Tax (GST) hike, which saw the rate rise from 6% to 8%.

Although food prices in the Maldives have experienced an increase, reports from international monetary authorities indicate a decrease in the global market, with food prices dropping from 11% to 4%. Notably, within the first quarter of this year, the overall inflation rate in the Maldives showed a decline from 17% to 9%.

Despite the anticipation of lower inflation in the Maldives, the economy has shown significant advancement, registering a growth rate of 13.9%. This remarkable progress has led to the restoration of the economy to its pre-COVID-19 state.