In February 2025, the Maldives’ Consumer Price Index (CPI) rose by a modest 0.27%, easing from the previous month’s 0.33% increase, according to the Maldives Bureau of Statistics. While this suggests a slight cooling of inflationary trends, the data reveals persistent pressures in key areas like housing, utilities, and communication services.
The most significant contributor to the month-on-month inflation was the Housing, Water, Electricity, Gas and Other Fuels category, which increased by 0.76%. This was primarily driven by a 3.88% surge in electricity prices and a 0.56% rise in water charges. The Information and Communication category also registered a marked increase of 0.66%, largely due to higher mobile communication service prices, which rose by 1.86%.
Notably, price growth excluding fish was more pronounced, rising 0.43% compared to just 0.08% in January. This suggests broader inflationary pressures were partially offset by a 2.70% drop in fish prices, driven by notable reductions in reef fish and fish paste.
Food prices edged up by 0.12% overall, but this masked a mixed picture. While prices for items like coconut (dry nut), lime, garlic, and grapes surged, several common vegetables and fruits such as onions, tomatoes, and apples saw sharp declines. Vegetables as a whole declined by 4.68%, offsetting some of the broader food inflation.
On the downside, Transport costs fell by 0.49% due to a 7.10% drop in international airfares. There were also modest decreases in furnishing and household equipment prices, notably air conditioners, which fell by 1.23%.
Inflation at the annual level stood at 5.14% for the Republic. In Malé, annual inflation reached 4.79%, while the Atolls experienced a higher rate at 5.66%. The most striking increase came from the Tobacco and Aracanut category, which soared by 89.85% at the national level, with even higher increases recorded in Malé at 113.42%. The steepest fall came from Information and Communication, which declined 5.67% nationwide.
Regionally, the Atolls saw a sharper rise in the CPI (0.36%) compared to Malé (0.22%) in February. The Atolls’ increase was led by electricity prices and building material costs, while Malé also saw electricity costs rise, but experienced a significant drop in airfare prices.
Though monthly inflation eased slightly, the persistence of cost increases in essential categories like housing, utilities, and mobile communication indicates that inflationary pressures remain a concern for Maldivian households. As the country navigates these economic challenges, policymakers will need to closely monitor and address the root causes to ensure the Maldives’ economic resilience and the well-being of its citizens.
