DILI, 29 may 2023 (TATOLI)—Minister of Finance, Rui Augusto Gomes said that inflation in the country was caused by the impact of rising oil prices and the cost of daily needs, which is currently the main topic discussed by the Government.
“There are two factors that greatly affect inflation in Timor Leste, the first factor is the price of fuel and basic needs because these prices have been set at the time of imports from abroad to Timor Leste and the price increase is not due to wages which has implications for inflation, because salaries do not change for 12 years,” Finance Minister Rui told reporters after a meeting with Prime Minister Ruak at the Dili Government Palace, Monday.
Gomes explained that currently, the world is facing inflation, for example, the increase in prices of basic needs in Southeast and Asian countries by up to 5%.
“Meanwhile, countries that we import basic needs such as Portugal around 11.5%, Australia 8%, and this is a global impact, 25% in Sao Tome do Principe, 60% in Egypt,” he explained.
In Timor Leste itself, inflation was around 8.1% from early January to this April, and this inflation is gradually recovering.
“We hope that by the end of the year inflation will fall by seven to six percent, and our forecasts for 2024 and 2025 will fall to 4%,” he said.
Minister Gomes emphasized that Timor Leste is an importing country, if there is inflation then producers will produce more.
“Speaking of demand and supply, Timor Leste has a lot of demand but offers at minimal prices. If there is a price balance, it will automatically be included in the payment balance,” he concluded.
Journalist: Camilo de Sousa
Editor: Nelia B.
