Fiji has experienced a notable drop in inflation as of January 2026, reporting an average annual inflation rate of –1.8 percent, according to the latest release from the Consumer Price Index (CPI). This marks a continued trend of deflation, with the CPI indicating a decrease when compared to the previous year.
The data reveals that the average CPI for the 12-month period from February 2025 to January 2026 has diminished compared to the prior year, with a month-on-month inflation rate falling by 2.5 percent in contrast to January 2025. The CPI, provided by the Fiji Bureau of Statistics, assesses the average changes in prices for goods and services that households purchase across the nation. Monthly data collection occurs in urban centers including Suva, Lami, Nasinu, Nausori, Lautoka, Nadi, Ba, and Labasa, and the index also reflects price movements in rural areas.
While the overall trend shows a decline in consumer prices, certain categories have noted price increases. Notably, prices for alcoholic beverages, tobacco, and narcotics rose by 1.9 percent, driven by heightened costs for spirits, beer, tobacco, and yaqona. Transportation costs also saw a rise of 0.8 percent, largely due to increased fuel and lubricant prices. Additionally, prices in furnishings and household equipment went up by 0.3 percent, while clothing and footwear, communication, and recreation and culture categories each recorded a slight increase of 0.1 percent.
Conversely, substantial price reductions were observed in food and non-alcoholic beverages, which dropped by 3.2 percent as a result of decreasing prices on oils and fats, vegetables, mineral water, soft drinks, and juices. The housing category, which includes water, electricity, gas, and other fuels, saw a reduction of 0.5 percent primarily due to lower gas prices, while health-related costs decreased by 0.2 percent as pharmaceutical prices fell.
These recent CPI figures suggest that households in Fiji are facing less financial pressure at the beginning of 2026, benefiting from a decline in food and fuel prices, despite some increases in other consumer sectors. This trend of easing cost pressures may bring a sigh of relief to many residents as they navigate their household budgets in the new year.