The Maldives’ national Consumer Price Index (CPI) registered a marginal decrease of 0.04 percent in June 2025 compared to May, signalling a broadly stable inflation environment despite fluctuations in key categories such as food and utilities. This is a notable shift from the previous month’s increase of 0.48 percent, suggesting a cooling off in short-term consumer price growth.
The CPI is used to measure inflation by tracking the changes in the cost of a typical basket of goods and services consumed by households. It helps policymakers, businesses, and consumers understand how the purchasing power of money is changing over time.
The monthly decline was primarily driven by falling electricity costs, which dropped by 3.18 percent, as well as a significant fall in the price of fish, particularly tuna, which declined by 7.42 percent. These reductions outweighed increases in food categories such as fruit (+3.20%), dairy products (+1.22%), and vegetables (+0.83%). Overall, the food and non-alcoholic beverages category still recorded a monthly rise of 0.55 percent, reflecting price pressures on fresh produce and essentials.
Prices also dipped for household equipment and furnishings (-0.68%), led by a sharp 3.92 percent fall in air conditioner prices. International airfares declined by 2.50 percent, contributing to a 0.28 percent fall in the transport category.
When fish is excluded, the CPI rose slightly by 0.03 percent, suggesting that without the sharp drop in seafood prices, headline inflation would have inched upward. This distinction is often made in the Maldives due to the high weight and volatility of fish prices in the overall CPI.
Regionally, Male’ saw a slight month-on-month inflation of 0.09 percent, while the Atolls recorded a 0.22 percent decrease. The electricity drop was more pronounced in the Atolls (-5.96%), compared to Male’ (-0.37%). Food prices, on the other hand, rose in both regions, with notable spikes in limes, eggs, and tomatoes.
Year-on-year inflation stood at 3.76 percent nationally, down from 4.55 percent in May. The biggest contributor to annual inflation was the Tobacco and Arecanut category, which surged by 88.94 percent over the year. In contrast, prices in the Information and Communication category declined by 5.34 percent over the same period.
Overall, the June CPI reflects a temporary easing of inflationary pressure, largely due to falling utility and fish prices, while underlying price pressures remain in essentials such as food. For households, this means mixed outcomes: relief in electricity and seafood costs, but continued strain on everyday groceries.
