Looking into the future, the near and medium term outlook for the Fijian economy remains positive. As for the Reserve Bank’s twin monetary policy objectives, we see inflation and foreign reserves as within acceptable and comfortable ranges. We also have a competitive and stable financial system with ample liquidity to assist us on our growth path.
In other words, if the prices of commodities, which are purchased frequently, rise, the perception of inflation would be different from say, a rise in the price of television set. While recognizing the overlap, the distinction between inflationary expectations and inflation perceptions in the context of inflation policy is worth bearing in mind.