The Reserve Bank of Fiji (RBF) has reported that inflation concluded in 2025 at a striking 0.0 percent, primarily attributed to a decrease in fuel and gas prices, as per data provided by the Fiji Bureau of Statistics. The RBF noted in their statement that the reduction in fuel expenses counterbalanced the upward pressures from increased prices of alcoholic beverages, tobacco, and narcotics, while the prices for food and non-alcoholic beverages remained stable throughout the year.
Looking ahead, the Bank anticipates inflation in 2026 to hover around 2.5 percent, contingent upon the absence of significant external shocks. However, they have cautioned that proposed hikes in electricity tariffs may exert upward pressure on prices, potentially influencing inflation through both direct price effects and broader cost transmission mechanisms.
On the domestic side, the tourism sector showed resilience in 2025, with visitor arrivals growing by 0.3 percent to 986,367, exceeding forecasts that anticipated no growth. Despite this positive outcome, the RBF highlighted that it was a significant decline from the 5.7 percent growth experienced in 2024. Increased arrivals from various regions, including the United States, continental Europe, Pacific Island nations, and the United Kingdom bolstered these numbers, while traditional markets like Australia and New Zealand displayed a subdued performance.
The Fijian economy is projected to continue its upward trajectory, expecting a growth rate of 3.0 percent in 2026, underpinned by a 2.0 percent increase in tourist arrivals. Nonetheless, the RBF expressed concerns about rising external and domestic risks that may impact this positive outlook, including global geopolitical and trade tensions, upcoming elections in Fiji and its key trading partners, diminished tourism demand, and the potential for increased electricity tariffs.
The RBF assured stakeholders that it will persist in monitoring economic developments and will adjust its monetary policy as necessary to maintain stability in the economy. This proactive approach reflects the Bank’s commitment to fostering a resilient economic environment amidst fluctuating global conditions.
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