Inflation declined by one percentage point in December, easing to 0.4 per cent from 1.4 per cent in November, latest statistics released by the Maldives Monetary Authority (MMA) show.

The data indicate that the month-on-month fall in inflation was driven largely by declines in key sectors, including transport and housing-related costs. Inflation in the transport sector fell by 1.6 per cent, while prices for housing, water, electricity, gas and other fuels declined by 3.1 per cent in December.

The information and communications sector also recorded a decrease, with inflation falling by 0.6 per cent. In contrast, restaurants and accommodation services registered the highest increase, rising by 5.0 per cent during the month.

December recorded the lowest inflation rate of the year, while inflation peaked in April, when it rose to 5.9 per cent.

On a quarterly basis, the fourth quarter recorded the lowest inflation rate at 1.9 per cent, while the highest was reported in the first quarter, where inflation stood at 5.6 per cent.