Inflation in the Maldives accelerated in August 2025, with the Consumer Price Index (CPI) rising by 4.14 percent year-on-year, according to data released by the Maldives Bureau of Statistics. The monthly increase stood at 0.36 percent, up from 0.02 percent in July, largely driven by higher prices for fish, fruits, and vegetables.
Food and beverages, which form a substantial share of household spending, rose by 1.6 percent compared to July and 4.58 percent year-on-year. The sharpest increases were seen in oranges (up 59.14 percent), apples (23.35 percent), onions (6.69 percent), and tuna (4.07 percent). The cost of reef fish climbed by 7.88 percent, contributing heavily to the monthly surge.
The fish sub-category alone rose by 3.24 percent month-on-month and 7.06 percent year-on-year, reflecting the volatility of local fish prices that often fluctuate due to weather conditions and seasonal supply constraints.
In contrast, prices for housing, water, electricity, gas, and other fuels fell by 0.33 percent in August, driven mainly by a 2.11 percent drop in electricity prices. However, roofing materials saw a 4.43 percent price increase. Overall, this category has declined by 2.94 percent over the past year, partly offsetting inflationary pressures in other areas.
Tobacco and areca nuts recorded the most dramatic year-on-year change, soaring by 108.46 percent. The spike follows the reclassification of tobacco-related expenditures in the CPI methodology, along with rising import costs.
At the geographic level, inflation in the atolls was notably higher than in Malé. Prices rose by 5.59 percent in the atolls year-on-year, compared with 3.20 percent in the capital. The Maldives Bureau of Statistics attributed this gap to sharper increases in food and energy prices in the atolls, where transportation costs amplify price volatility. Month-on-month, the CPI rose by 0.22 percent in Malé and 0.56 percent in the atolls.
Transport costs rose modestly by 0.09 percent nationwide, driven mainly by higher international airfare prices. Meanwhile, prices for education, insurance, and health services remained unchanged.
While CPI measures the change in the overall cost of goods and services purchased by households, it is also the primary gauge of inflation in the country. A rise in CPI generally indicates an increase in inflation, meaning that consumers are paying more for the same basket of goods compared to the previous period. The August CPI therefore signals that the rate of inflation has picked up, mainly due to food price increases.
The rise in prices reflects ongoing pressures on household budgets amid uneven economic recovery. While food prices continue to drive inflation, the fall in housing and energy costs has helped temper broader price growth.
The persistence of high food inflation could weigh on consumer spending, particularly in lower-income households. The contrast between urban and atoll inflation also highlights the uneven impact of cost-of-living pressures across the country.
The August CPI release illustrates the delicate balance policymakers face in managing inflation while sustaining economic activity. As the government focuses on fiscal consolidation and clearing pending payments to businesses, the short-term outlook for inflation will depend largely on global commodity prices, import costs, and domestic supply chain stability.
