Global prices dominate inflationary trends in the Maldives, as domestic consumption is driven mainly by tourism expenditure and is met mostly through imports. Inflation is therefore susceptible to global travel and price swings, and the pass-through is set by the rufiyaa:US dollar peg. However, the government's comprehensive policy of capping the cost of utilities (making up more than a fifth of the consumer price index) and other living expenses for citizens strongly blunts the pass-through of global price pressures.

Regulated prices and a sharp cut in internet prices offset the impact of rising food prices to keep overall consumer price growth soft in 2021, estimated to have averaged 0.7% during the year. Although the government is expected to maintain current subsidies in 2022-23, the introduction of a minimum monthly wage, set in the range of Rf4,500-7,000 (US$291-453) by the Ministry of Economic Development, and a proposal to tax plastic bags from mid-2022 will lead to higher cost-push inflation. Elevated fuel and transport costs globally will also be inflationary.