Inflation levels rose to an 18 year high in August standing at around 9.5% from 7.8% in July.

The Reserve Bank of Fiji had revealed that the pickup in inflation reflected the revised consumer basket of 2005 and that there may be upside risks to the inflation outlook of 7.5 percent this year, as oil and food prices are still high, despite easing somewhat recently.

However, on a positive note, the RBF said there were positive developments in certain industries such as tourism, forestry, fishing and mineral water so far this year and we are encouraged by prospects for next year especially in tourism and gold.

There was also some improvement in export performance in the first seven months of the year, but this was more than the offset by the strong growth in imports, which was being driven by high food and oil prices.

According to the RBF, high commodity prices continue to pose a threat to its objectives ad will be closely monitored in the coming months as it again emphasized the need to grow exports to assist in supporting the balance of payments.