Litia Cava 
[Photo: FILE]
Inflation in Fiji stood at zero per cent in December, unchanged from earlier in the year.
The Reserve Bank of Fiji’s December Economic Review 2025 pointed this out.
Rising prices for alcohol, tobacco, Yaqona and hospitality were offset by declines in transport, fuel and household goods.
Consumer activity remained robust, driven by lower VAT rates, higher wages and remittances.
Trade dynamics showed a 10.1 per cent widening in the merchandise deficit as imports grew faster than exports.
Key imports included machinery, vehicles and manufactured goods, while gold, woodchips and kava boosted export receipts.
The review notes that declines in sugar, mineral water and re-exported fuel offset some gains.
Investment and construction indicators suggest an improving outlook.
The value of building certificates and work put in place increased while new loans for households and real estate rose.
Banking sector conditions remained favorable, supporting credit growth and keeping lending rates low.
The Reserve Bank stresses vigilance as external shocks and domestic structural challenges could affect future economic stability.
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