Aerial shot of Suva City. [File Photo]

Annual inflation fell to -3.8 per cent in September, down from -3.5 per cent in August.

This, according to the Reserve Bank of Fiji.

RBF said it was driven by lower prices for food, transport and cooking fuel. Increases in alcohol, tobacco, and restaurant costs were outweighed by overall savings, keeping consumer prices in check.

The Reserve Bank has maintained the overnight policy rate at 0.25 per cent, keeping lending costs low to support economic growth.

RBF Governor Ariff Ali. [File Photo]

Governor Ariff Ali said the bank’s focus remains on price stability while maintaining strong foreign reserves, which currently stand at $3.9 billion, enough to cover over six months of imports.

Economic activity remains resilient, with Fiji on track for a fourth consecutive year of growth. Visitor arrivals grew slightly to 735,154, led by tourists from the United States, Pacific Islands, Europe and the UK, despite declines from Australia, New Zealand and Asia.

Timber and electricity production recorded gains, while gold, sugar and mineral water output fell due to sector-specific challenges.

Domestic consumption remains strong, supported by higher incomes and remittances. Indicators such as VAT collections, vehicle registrations, electricity demand and consumption loans point to steady spending.

Investment activity is also rising with more construction projects, lower material costs, and increased imports for building.

The RBF’s August Business Expectations Survey shows most firms anticipate stable conditions over the next 6 to 12 months, with intentions to invest in machinery and infrastructure.

Private sector credit expanded 9.6 per cent in September, while liquidity remains stable at around $2.3 billion.
Ali warned that global risks including US-China tensions, new tariffs and the approaching cyclone season, could affect Fiji’s economic outlook.

He adds that the Reserve Bank will continue to monitor developments closely and adjust policy as needed to safeguard growth and stability.

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