Fiji Inflation Drops to -1.4% in 2025 as Prices Stabilize

The Fiji Bureau of Statistics (FBoS) has reported that the average annual inflation rate for the year leading to December 2025 has dropped to -1.4 percent, marking a significant easing of price pressures in comparison to the previous year. This figure is derived from an analysis of the Consumer Price Index (CPI) averaged from January to December 2025 against that of the same period in 2024.

The CPI serves as a crucial indicator, tracking the average changes in prices for goods and services purchased by households across the nation. The collection of monthly prices occurs in various urban centers, including Suva, Lami, Nasinu, Nausori, Lautoka, Nadi, Ba, and Labasa, with efforts made to ensure that the index reflects price movements even in rural areas. The weightings for the CPI are based on data from the 2019/2020 Household Income and Expenditure Survey.

In December 2025, the All Items CPI recorded a 1.2 percent increase from November 2025, rising from 110.5 to 111.8. Notable price hikes were seen in several sectors: alcoholic beverages, tobacco, and narcotics surged by 3.1 percent, primarily attributed to soaring yaqona prices. Meanwhile, food and non-alcoholic beverages experienced a 2.4 percent increase due to higher costs for meat, oils, fats, fruits, vegetables, and soft drinks.

Additionally, the categories of restaurants and hotels saw a 1.0 percent rise, while clothing and footwear increased by 0.6 percent. Communication services rose by 0.5 percent, but categories such as education, housing, utilities, and recreation maintained stable prices with no net changes.

On the other hand, the increases were balanced by declines in transport prices (down 0.3 percent), furnishings and household equipment (down 0.3 percent), miscellaneous goods and services (down 0.5 percent), and health services (down 0.7 percent), largely due to reductions in fuel and pharmaceutical prices.

Overall, this data reflects a trend of stabilizing prices in several sectors, potentially alleviating financial pressures on households in Fiji.