SUVA, May 30 (Xinhua) -- Fiji's annual inflation rose to 7.1 percent in April, the highest in the past decade, the Reserve Bank of Fiji (RBF) said in its latest update on Thursday.

RBF Governor Ariff Ali said the rise in inflation rate reflects increased prices in food, alcoholic beverages, narcotics and tobacco.

The prices of agricultural produce also increased due to adverse weather conditions and the effects of tax increases.

The RBF Board has maintained the Overnight Policy Rate at 0.25 percent as partial indicators suggest a slowdown in domestic economic activity, alongside some constraints and risks that could affect the growth outlook.

Visitor arrivals remain a crucial component of domestic economic activity, and continued to register annual increases in the year to April, Ali said.

However, visitor arrivals from Australia, Fiji's largest source market, have been lower this year compared to last year, he said.

Nonetheless, increased arrivals from other markets, which include New Zealand, China, the United States, Japan and Europe, help offset the decrease from Australia.

Despite positive consumption spending, cost-of-living pressures and high emigration rates are hindering further momentum in the area, Ali said. Enditem

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