Latest forecasts by the Reserve bank of Fiji indicate that the current inflation rate is not expected to ease and the bank is now revising upwards its year end inflation figures.

The RBF said with the inflation rate at 7.6 percent for February, underpinned by the soaring international oil and food prices, persistent inflationary pressures in the months ahead is expected to the end of year forecast of 5 percent revised upwards.

The Bank said recent economic data also indicate that consumption remains weak and investment continues to be depressed.

However it is the encouraging sign is that export earnings from gold is expected to increase with Westech Mining now in operation and recent data also shows that visitor arrivals have rebounded significantly from a year ago.

On foreign reserves, the RBF said the pressure on Fiji's balance of payments persists due to the wide trade deficit.

The Bank is monitoring the situation closely and will change its monetary policies based on the outlook for foreign reserves and inflation.