The Maldives’ Consumer Price Index (CPI) saw a modest increase of 0.33% in January 2025 compared to December 2024, reflecting fluctuations in food, accommodation, and financial services, according to the Maldives Bureau of Statistics.
Key Drivers of Inflation
The food and non-alcoholic beverages category saw a 2.16% increase, largely driven by a 5.19% rise in fish prices, a staple in Maldivian households. Specific food items, such as reef fish (+8.11%), tuna (+9.47%), mangoes (+13.70%), and carrots (+14.73%), recorded significant price hikes. Meanwhile, restaurants and accommodation services registered a 2.91% increase, with price surges in lunch packs (+6.82%), coffee (+4.01%), short eats (+4.72%), and buffet meals (+7.15%).
Insurance and financial services costs also rose by 2.16%, along with a 0.68% increase in clothing and footwear. The personal care, social protection, and miscellaneous goods category increased by 0.36%, mainly due to an 11.75% rise in barber service costs.
Categories with Price Declines
Several sectors recorded price decreases in January. The information and communication sector saw the most significant decline at -1.87%, driven by falling prices for mobile phones (-7.72%) and tablets (-9.64%). Housing, water, electricity, gas, and other fuels also declined by 0.17%, mainly due to lower electricity prices (-1.74%), despite a 2.20% rise in water supply costs.
The transport sector dropped by 0.46%, primarily due to lower motorcycle prices (-1.62%). Meanwhile, furnishing, household equipment, and floor coverings fell by 1.68%, largely due to cheaper bedroom sets (-6.77%) and refrigerators (-7.19%).
A notable decline was observed in tobacco and arecanut prices (-3.55%), largely due to a 3.86% drop in cigarette prices in the atolls.
Year-on-Year CPI Trends
Over the twelve months leading up to January 2025, the CPI increased by 5.33% nationwide. The restaurant and accommodation services sector showed the most substantial rise at 29.33%, followed by fish prices (+13.28%) and food and non-alcoholic beverages (+7.38%). Notably, the tobacco and arecanut category surged by 90.02% year-on-year.
Conversely, the information and communication sector recorded the biggest year-on-year decline (-6.05%).
Regional Inflation Differences
Inflation trends varied between Malé and the atolls. While Malé saw a month-on-month CPI increase of 0.65%, the atolls recorded a slight decline of -0.13%. The most significant price rise in Malé was in restaurant and accommodation services (+4.55%), while the atolls saw a 2.71% increase in food prices, particularly in reef fish (+11.00%) and tuna (+11.99%).
The moderate increase in CPI suggests that inflationary pressures are being driven primarily by food and service sector costs, particularly those related to dining and accommodation. While lower prices in utilities and communication services may provide some relief, ongoing fluctuations in fish prices and imported goods could continue to shape inflation trends in the coming months.
