The Reserve Bank of Fiji (RBF), like many central banks, aims to maintain low and stable inflation – or price stability – as one of its key monetary policy objectives.
In this article, we talk about inflation and why the RBF considers it important to maintain low and stable inflation in the economy.
What is inflation?
Inflation is defined as the rise in the overall level of prices of goods and services in an economy over time.
Causes of inflation
Prices that consumers pay for goods and services are influenced by the cost of producing or supplying them – that is the cost of input – such as wages, raw materials, utility bills, imports and rent.