New price index to monitor and control essential commodity prices

On Monday evening, Economic Minister Mohamed Saeed announced the introduction of a new initiative, the 'Essential Commodity Price Index,' designed to evaluate the prices of fundamental food items.

During an appearance on the state media's 'Raajje Miadhu' program, Minister Saeed stated that the government had ensured reasonable prices for food items during the preceding two Ramadans. He acknowledged that, in a limited number of instances, certain items experienced temporary unavailability, though these issues were subsequently resolved.

He attributed these successes to the government's significant measures aimed at reducing food prices and enhancing food accessibility.

Saeed further elaborated that the Essential Commodity Price Index, slated for development in collaboration with the National Bureau of Statistics, will facilitate the identification of fluctuations in food prices.

The minister affirmed, "The index will ascertain the prices of items frequently consumed by households and enable the implementation of necessary measures to regulate prices. I anticipate its publication in the coming days."

Saeed confirmed that 162 items have been incorporated for monitoring under the index. This compilation includes 111 food and beverage items commonly used by households, 39 varieties of fruits and vegetables, 10 types of fish, and two energy-related commodities. Among these, 35 items have been designated as 'critical items' due to their irreplaceability.

With the advent of this new index, the inflation of these items will be ascertainable at the conclusion of each month. The minister indicated that the prices of food items will be meticulously recorded daily from large retail establishments to facilitate continuous price monitoring.

The Consumer Price Index (CPI) continues to be utilized by the Bureau of Statistics for measuring inflation. The most recent CPI report, released by the Bureau of Statistics in June, indicated an inflation rate of 3.76 percent.

According to the latest data disseminated by the central bank, the Maldives Monetary Authority (MMA), food inflation reached 29.6 percent during the first three months of the current year. Subsequently, inflation in these sectors stood at 29.4 percent in June, marking the highest rate recorded this year.