The Reserve Bank of Fiji says inflation ended 2025 at 0.0 percent, largely due to lower fuel and gas prices, according to data released by the Fiji Bureau of Statistics.
In a statement, the RBF said the decline in fuel costs offset higher prices in alcoholic beverages, tobacco and narcotics, while food and non-alcoholic beverage prices remained unchanged.
Looking ahead, the Bank projects inflation in 2026 at around 2.5 percent, provided there are no major external shocks.
However, it warned that proposed increases in electricity tariffs could place upward pressure on prices.
Such increases could affect inflation “through both direct price effects and broader cost pass-through channels,” the RBF said.
On the domestic front, tourism performed better than expected in 2025, with visitor arrivals rising 0.3 percent to 986,367, compared with a forecast of no growth.
However, the RBF noted this was well below the 5.7 percent growth recorded in 2024.
The Bank said higher arrivals from the United States, continental Europe, Pacific Island countries and the United Kingdom supported the outturn, while key markets Australia and New Zealand recorded subdued results.
The Fijian economy is projected to expand for a fifth consecutive year in 2026, with growth forecast at 3.0 percent, underpinned by a 2.0 percent increase in visitor arrivals.
However, the Bank warned that rising external and domestic risks could weigh on the outlook, including global geopolitical and trade tensions, elections in Fiji and key trading partner economies, subdued tourism demand, and the possibility of higher electricity tariffs.
The RBF said it will continue to closely monitor developments and align monetary policy as needed to support economic stability.
