Inflation in the Maldives accelerated in 2025, with the Consumer Price Index for all groups rising by 4.04%, up from 1.40% in 2024, according to the Maldives Bureau of Statistics’ annual CPI release.
For households, that 4.04% figure represents the average increase in the cost of a standard basket of goods and services over the year. It does not mean that every item rose at the same pace. Some categories experienced sharp increases, while others declined, producing a moderate overall rate.
The most significant upward pressure came from the tobacco and areca nut group, which recorded an 80.63% increase compared with 2024. The Bureau attributes this surge to higher import duties on cigarettes and a shift in demand following the ban on the use, sale and advertisement of vaping devices introduced in December 2024.
Food and non-alcoholic beverages rose by 4.70% during the year. The Bureau links this to foreign currency constraints affecting importers, higher parallel market dollar rates, and seasonal demand during Ramadan. Price increases were recorded across several essential items, including vegetables and staples, even though a few products such as onions saw notable price declines.
Fish prices increased by 7.56% in 2025, with climate-related factors affecting catch volumes in parts of the year. Tuna-related products and fish paste were among the key contributors to the rise.
By contrast, some major categories helped moderate overall inflation. Housing, water, electricity, gas and other fuels fell by 1.24%, influenced by consumption patterns and electricity bill discounts. Information and communication declined by 4.57%, reflecting changes in internet pricing and usage. Transport prices edged down by 0.66%, partly due to lower petrol and diesel prices.
Inflation also varied geographically. Malé recorded an annual rate of 3.49%, while the atolls saw higher inflation at 4.89%, again largely driven by tobacco and areca nut prices.
Overall, the 2025 figures point to inflation shaped by a few high-impact price increases rather than broad-based pressures across all sectors. While the headline rate remains moderate, households are likely to feel the impact unevenly, particularly in categories where prices have risen sharply.
