Rising business costs putting pressure on inflation
Businesses have incurred sharp increases in production costs since the outbreak of Covid-19 last year, such as higher prices for non-fuel goods, fuel, land rentals, and sea freight. Though average CPI increased just 1.47 per cent in the first half of the year - the lowest rise since 2016 - inflationary trends may increase in the closing months of the year. Disruptions in the supply chain due to improper pandemic prevention measures will also cause prices to increase sharply over the remainder of 2021.