Sayed -Khaiyum Criticizes Government Over Inflation "Celebration"

Former Attorney-General Aiyaz Sayed-Khaiyum has criticised the coalition government for celebrating a marginal drop in inflation, calling the move premature and misleading.

In a Facebook post by Aiyaz Sayed-Khaiyum, he argued that the reported 0.9% decline in the Consumer Price Index (CPI) for April is largely technical and not the result of any deliberate government intervention.

He explained that inflation measures the rate of price increases over time, and a slight reduction in that rate does not mean prices have actually fallen. Rather, it means that the pace of increase has slowed, and in this case, the drop reflects a comparison to April 2024—a month that had one of the highest inflation rates in a decade. According to him, even with the latest decrease, prices are still over 7.2% higher than they were when the coalition took office.

Sayed-Khaiyum insisted the CPI reduction is primarily driven by external factors, such as falling global fuel prices and relatively stable weather conditions, which have helped maintain fruit and vegetable supply.

He also pointed to intense competition among supermarkets and a slowdown in consumer spending as contributing factors, not government policy.

The former AG cautioned against interpreting the CPI dip as a sign of improved economic health. He argued that the economy remains sluggish, with lower sales, declining bank loan uptake, fewer new car purchases, and a drop in home construction.

He attributed this to a loss of public and investor confidence, driven by several policy decisions under the current government, including tax hikes, reduced support for vulnerable communities, lack of capital investment, and poor enforcement of the rule of law.

Sayed-Khaiyum also accused the government of favouring certain businesses while neglecting small and medium enterprises, and undermining independent institutions. He cited disruptions in key sectors—like the taxi industry—as examples of ill-informed and regressive policy-making.

He concluded by urging the Prime Minister and his team to focus on real economic challenges rather than seeking praise through "orchestrated accolades," media fanfare, social events, and overseas tours. Describing such actions as hypocritical and self-indulgent, he called for a halt to what he termed as “delusion” and “celebration at the expense of ordinary Fijians.”