5 Jul 2018

Report shows New Caledonia costly compared with France

3:35 pm on 5 July 2018

A new report says prices in New Caledonia are on average 33 percent higher than in France.

Noumea, the capital of New Caledonia.

Noumea, the capital of New Caledonia. Photo: RNZ / Johnny Blades

The figures were compiled by IOEM which is the body issuing the French Pacific franc.

It found that food products were 73 percent more expensive, attributing this in large part to a lack of competition and protectionism.

Communication costs are 64 percent higher, with the IOEM noting that prices have dropped but not as quickly as in France.

Transport costs in New Caledonia are two percent higher.

The report noted that the price difference has remained stable this decade.

Inflation in the past year was 1.4 percent.