The end of year inflation forecast for 2009 has been revised downward with predictions that domestic prices are not expected to rise in the months ahead.

According to the Reserve Bank of Fiji's Economic Review for November, since the devaluation in April, prices have now increased by 7.6 percent.

The RBF said, in the approaching months, although upward movements are expected in fuel and commodity prices in the world market, the depreciating US Dollar and the weaker than expected domestic demand are likely to hold off any significant rise in domestic prices.

This has forced the RBF to revise down the end of year inflation forecast from 9.5 to 7 percent.

Meanwhile, the RBF's report also states that sugar production up to October was lower than a year ago owing to mill problems which affected the efficiency in producing sugar. As a result of the low performance, crushing at the three larger mills has been extended by two weeks, moving the end of year crushing season to January.

The report also shows that the demand for electricity is growing, putting more strain on the FEA's stretched resources.

According to the RBF, there has been growth in new demand for electricity rather than demand from existing consumers and up to October this year electricity production rose by 2.5 percent.