Country Report Maldives October 2019

Outlook for 2020-21: Inflation

In the first half of 2019 average year-on-year growth in consumer prices was almost flat. We expect consumer price deflation to persist in 2020, due in part to the influence of the peg between the rufiyaa and the US dollar, as well as softer global oil prices. We forecast that consumer price inflation will return to positive territory in 2021, averaging a modest 0.2%, driven in part by higher global oil prices.

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