Fiji is undergoing a significant decline in its consumer price index (CPI), highlighting a notable deflationary trend that has persisted for seven consecutive months. As of September 2025, the headline CPI recorded a year-on-year decrease of 3.8%, resulting in an average annual inflation rate of -0.9%, indicating a sustained period of falling prices.
Shamal Chand, the chief economist at Westpac Fiji, explained that this deflation is largely due to an 8.2% decrease in the prices of food and non-alcoholic beverages, along with an 8.1% decline in transport costs, mainly attributed to reduced prices for fuel and spare parts. Although the yearly figures reflect deflation, there was a slight uptick of 0.3% in the CPI for September, suggesting that underlying inflationary pressures may be on the rise—particularly for food items such as meat, dairy products, oils, and beverages, a trend that resonates with movements in other economies globally.
Chand pointed out that the current economic landscape is undergoing transformational changes, particularly following the recent rebase of the CPI by Fiji’s Bureau of Statistics (FBoS) to a base year of 2019. This rebase aims to better align the index with consumption patterns observed prior to the pandemic. Historical data shows that inflation peaked during the post-pandemic recovery phase, reaching 8.2% year-on-year in August 2022, corroborating earlier discussions about the intensity of price pressures during that period.
The updated basket for the CPI now consists of 309 items, a decrease from the previous 349, with alterations in expenditure weights reflecting a rise in consumer spending on alcoholic beverages, tobacco, and narcotics.
According to Westpac’s report, Westpac Wave, while Fiji is currently experiencing deflation, the likelihood of inflation resurfacing in the upcoming months remains, primarily influenced by fluctuations in global fuel prices and shifts in the domestic market. The combination of inflationary pressures and the recent rebase signals that Fiji’s economy is traversing a transitional phase. This phase calls for vigilant monitoring of price changes and responsive government measures designed to enhance the economic welfare of citizens.
Amid these economic shifts, there is a sense of optimism as the current trends suggest a potential pathway toward economic stability, aiming for more affordable prices for essential goods as consumers adapt to the emerging economic reality.