Food inflation in the Maldives has declined to 5.6%, according to statistics released by the Maldives Monetary Authority (MMA), indicating a slowdown in food price increases across Malé and the atolls.

According to MMA data, food inflation has fluctuated significantly this year. It stood at 1.2% at the beginning of the year, before rising to 1.9% in March. Inflation then increased sharply, reaching its highest level of 7.3% in June. Since then, the rate has gradually declined, falling by 1.6 percentage points from its June peak by August.

In Malé, food inflation peaked at 7.5% in June. In the atolls, it reached 7.1% in both June and July.

Meanwhile, transport-related inflation has remained elevated amid rising travel costs linked to the conflict in the Middle East. Transport inflation has stayed between 8% and 9% since March and stood at 8% in August.

Despite continued pressure from transport costs, slower price increases in other sectors have helped keep overall inflation at 0.8%, according to MMA figures.

The latest figures indicate easing food inflation, although the continued rise in transport costs remains a concern for households and businesses across the country.

Overall, the decline in food inflation offers a positive sign for the Maldivian economy, bringing some relief to households amid rising living costs. While challenges remain, the downward trend in food inflation signals an encouraging development, with hopes that prices will stabilise further in the coming months.