The World Bank has projected that inflation in the Maldives will rise to 6 percent this year, driven by escalating costs for imported goods stemming from the ongoing conflict in the Middle East.
The forecast highlights the vulnerability of the small island nation, which depends almost entirely on imports for its consumption needs.
As global supply chains face disruption and energy prices remain volatile due to geopolitical tensions, the cost of living in the Maldives is expected to surge.
This development aligns with broader trends observed in other import-dependent economies.
Recent data from China showed consumer and producer prices surging beyond forecasts in April, partly due to the same Middle East conflict intensifying pressure on commodity prices.
Similarly, reports indicate that escalating tensions are translating into higher fuel prices for Indian households starting in June.