Fiji Sees January 2026 Deflation as CPI Dips to -1.8%

Fiji experienced a continued trend of deflation in January 2026, with the average annual inflation rate registering at –1.8 percent, as detailed in the latest Consumer Price Index (CPI) report. This figure indicates a notable decrease compared to the previous 12-month period, reflecting a month-on-month inflation drop of –2.5 percent compared to January 2025.

The CPI, a key measure compiled by the Fiji Bureau of Statistics, tracks average changes in prices for goods and services purchased by households across the nation. Price collections are conducted monthly in urban areas such as Suva, Lami, Nasinu, Nausori, Lautoka, Nadi, Ba, and Labasa, while the index also accounts for rural price changes.

While deflation prevailed overall, several categories saw price increases. Alcoholic beverages, tobacco, and narcotics rose by 1.9 percent, driven by higher costs for spirits, beer, and yaqona. Additionally, transport prices climbed by 0.8 percent, largely due to increased fuel and lubricant costs. Other sectors, including furnishings and household equipment, also experienced a slight rise of 0.3 percent, while clothing and footwear, communication, and recreation and culture each edged up by 0.1 percent.

Conversely, significant deflation was noted in the food and non-alcoholic beverages category, which saw a decrease of 3.2 percent. This reduction can be attributed to lower prices for oils and fats, vegetables, and various beverage options. The housing sector, encompassing water, electricity, gas, and other fuels, also reported a 0.5 percent drop, primarily due to reduced gas prices. In the health category, prices fell by 0.2 percent, reflecting a decrease in pharmaceutical costs.

The recent CPI data signals a relief in cost pressures for Fijian households at the beginning of 2026, primarily fueled by declining prices in essential sectors such as food and fuel. This trend offers a cautious but hopeful outlook for consumers, indicating that while certain areas see price hikes, essential goods are becoming more affordable.