Inflation in the Maldives edged up in May 2025, with the Consumer Price Index (CPI) rising by 0.48 percent compared to April. For many households, this number may seem abstract, but what it represents is something tangible: a quiet but steady rise in the cost of living, led by soaring electricity bills and price fluctuations in everyday food items.
The most significant contributor to the monthly rise was electricity, with prices jumping nearly 13 percent. For households already managing tight budgets, this spike can mean tough decisions about how electricity is used day-to-day. The overall housing, water, electricity, and fuel category rose by 1.91 percent in May, pointing to a broader rise in essential utility costs.
At the same time, food prices added further pressure, although the overall category rose by just 0.05 percent. This small increase hides more volatile swings beneath the surface. While tuna prices rose over 3 percent, staples like oranges, carrots, onions, and garlic became cheaper. These shifts matter, because they affect how far each rufiyaa stretches at the market. For island communities and urban households alike, the price of a fish curry or a basic fruit basket can shift noticeably even if the overall inflation figure feels moderate.
Not all sectors saw a rise. Communication costs dropped by 0.12 percent, driven by cheaper mobile services, and recreation and culture spending also dipped slightly. These reductions offer small relief, but they come in areas often less essential than food or electricity.
Year-on-year, inflation has slowed from April’s 5.62 percent to 4.55 percent in May. This suggests that while prices are still rising, the pace has eased slightly. Yet this slower pace does not negate the very real impact of rising prices in key categories. In Malé, for instance, electricity prices spiked by over 17 percent in just one month.
The data also hints at deeper structural concerns. Electricity and food remain central drivers of inflation, both of which are sensitive to global trends and supply disruptions. This leaves Maldivian households vulnerable to shocks they have little control over, whether due to fuel import costs or seasonal changes in local fisheries and agriculture.
Perhaps most striking is the continued annual surge in tobacco and arecanut prices, up nearly 90 percent compared to last year. While this may be viewed as a targeted policy result or an import shift, it reflects how specific consumption patterns can disproportionately influence the broader inflation picture.
In short, May’s inflation numbers are not just about percentages. They reflect the growing cost pressures facing ordinary Maldivians. From switching off an extra light at night to rethinking grocery choices, the monthly CPI is a mirror of daily adjustments being made across households nationwide.
