Maldives to introduce essential commodity price index to track and stabilize food prices

Economic Minister Mohamed Saeed has announced that the National Bureau of Statistics will soon launch an Essential Commodity Price Index (ECPI) to monitor and control the prices of widely consumed food and household items.

Speaking on PSM’s "Raajje Miadhu" program tonight, Minister Saeed said the government has taken significant steps over the past two years to stabilize food prices and ensure easier access to essential items. He noted that these efforts enabled the public to access food at reasonable prices during the past two Ramadan seasons.

The forthcoming index, he said, will focus specifically on essential commodities, unlike the broader Consumer Price Index (CPI), which tracks inflation across all sectors. The ECPI is expected to be made public within two days and will help monitor price fluctuations in vital goods.

Unlike the existing Consumer Price Index (CPI), which measures general inflation, the ECPI will focus only on essential items. According to the latest figures, food inflation is currently at 5%, while overall inflation was recorded at 3.8% at the end of June.

The ECPI will cover 162 items, including 111 commonly used household items, 39 types of fruits and vegetables, 10 meat or fish products, and 2 energy items. Of these, 35 items are considered “critical”, meaning there are no substitutes or additional subsidies available for them. Minister Saeed explained that with this index, the government will be able to monitor price changes monthly and respond more effectively.

He also mentioned that prices are already being tracked daily in major shops around the country. Other measures, such as increasing the amount of U.S. dollars given to businesses by banks, allowing businesses to open MVR accounts at BML, and expanding Rufiyaa-based transactions, are also expected to help control prices.

In addition, Minister Saeed said the government is working on long-term solutions to stabilize prices, including through free trade agreements with countries like China and Turkey. Talks are also ongoing with India, the UAE, and Saudi Arabia to form similar partnerships that can help lower import costs and provide better access to essential goods.