The rate of inflation in the Maldives remained unchanged at 4% in July 2025, according to the latest Economic Update published by the Maldives Monetary Authority (MMA). This stability follows a 0.2% monthly rise in June, highlighting persistent pressures on household budgets despite the absence of further acceleration.
The largest driver of annual inflation was tobacco, contributing over two percentage points to the overall rate. Food items also played a significant role, particularly fruits and fish, while restaurant and café prices added further weight. Smaller upward contributions came from dairy products and personal care goods. At the same time, some categories, such as electricity and mobile communication services, helped to offset increases by exerting downward pressure on the index.
Month-on-month inflation showed little movement in July. Prices of vegetables, fish, and dairy products edged higher, but these gains were countered by declines in garments, air travel, mobile services, and fruits.
Although the headline figure has stabilised, the composition of inflation reflects how consumption patterns directly impact households. Essentials such as tobacco, fresh produce, and dining costs continue to make up the bulk of price rises. For workplaces, the situation signals a need to consider how employees’ purchasing power is being stretched, with knock-on effects for wage negotiations and household wellbeing.
Inflation trends will remain central to economic discussions in the months ahead, especially as the government navigates fiscal pressures and businesses weigh the implications of higher consumer costs.
