The Fijian Competition and Consumer Commission has warned that global freight disruptions, rising fertiliser prices and escalating insurance costs linked to international conflicts could place further pressure on consumer prices in Fiji throughout 2026.
In a market advisory on freight and pricing, the FCCC said Fiji faced the risk of a second wave of food inflation as production and transport costs continue to rise.
According to the Commission, higher fertiliser prices are expected to increase agricultural production costs, which could directly impact food prices later this year.
“Higher fertiliser costs are expected to increase agricultural production expenses, which may contribute to a second wave of food inflation during mid-2026,” the advisory stated.
The FCCC said increasing fuel and transport costs were also expected to place additional upward pressure on food prices.
The advisory further highlighted concerns over rising aluminium prices, noting that aluminium remained a critical material for renewable energy infrastructure projects, including planned solar photovoltaic developments by Energy Fiji Limited.
The Commission warned that increasing aluminium costs could affect Fiji’s renewable energy transition initiatives.
Freight and shipping disruptions were also identified as major concerns.
According to the FCCC, freight rates for chemical and liquefied natural gas carriers had risen sharply, with shipping backlogs and logistical disruptions expected to keep landed costs elevated for the remainder of 2026.
“The backlog effect will keep landed costs elevated through the remainder of 2026,” the advisory noted.
The Commission also warned that insurance premiums for vessels travelling through conflict-adjacent routes had increased significantly, with several global shipping operators invoking force majeure clauses on existing contracts.
“These costs are being passed down through the supply chain, meaning Fiji’s landed costs will continue to rise for the time being, even if wholesale commodity prices stabilise,” the FCCC stated.
The advisory added that disruptions to long-term supply contracts had exposed importers to greater spot market volatility, particularly for fuel and key commodities.
It said floating freight premiums, recalculated based on real-time security and operational risks, were making landed cost projections increasingly difficult to predict.
