Fiji has reported a significant drop in inflation as of January 2026, with an average annual inflation rate of –1.8 percent, according to the latest Consumer Price Index (CPI) data. This continuing trend of deflation is evidenced by the CPI indicating a decline compared to the previous year.
The analysis shows that the CPI for the 12-month period from February 2025 to January 2026 has decreased, with a month-on-month inflation rate dropping by 2.5 percent compared to January 2025. The CPI, produced by the Fiji Bureau of Statistics, tracks the average price changes in goods and services typically purchased by households across the country. The data is collected monthly in urban areas such as Suva, Lami, Nasinu, Nausori, Lautoka, Nadi, Ba, and Labasa, and it also reflects price movements in rural regions.
Although the overall consumer price trend is downward, several categories have experienced price increases. Alcoholic beverages, tobacco, and narcotics saw a rise of 1.9 percent, largely attributed to increased costs of spirits, beer, tobacco, and yaqona. Transportation costs rose by 0.8 percent, primarily due to higher fuel and lubricant prices. Additionally, prices for furnishings and household equipment increased by 0.3 percent, while categories such as clothing and footwear, communication, and recreation and culture each noted a small uptick of 0.1 percent.
On the other hand, considerable price reductions were noted in the food and non-alcoholic beverage sector, where prices fell by 3.2 percent, driven by decreasing costs for oils and fats, vegetables, mineral water, soft drinks, and juices. The housing category, which encompasses water, electricity, gas, and other fuels, also experienced a decline of 0.5 percent, mainly due to lower gas prices. Health-related costs decreased by 0.2 percent as a result of falling pharmaceutical prices.
These recent CPI statistics indicate that households in Fiji are experiencing less financial strain at the start of 2026, as they benefit from falling food and fuel prices, despite price hikes in other consumer areas. This trend of reduced cost pressures is likely to provide much-needed relief to residents as they manage their household finances in the new year, creating hope for improved economic conditions ahead.