Tonga’s annual inflation rate rose to 9.3% in July, with sharp increases in transport, housing costs and restaurant prices putting further pressure on households and businesses.

The Tonga Statistics Department said the Consumer Price Index (CPI) reached 143.4 in July 2026, up from 131.2 a year earlier. Prices for imported goods rose 10.6% over the year, compared with an 8.2% increase in locally produced goods.

Transport recorded the largest annual increase, rising 23.3% and contributing 3.1 percentage points to overall inflation. The increase was driven by higher international airfares, inter-island ferry fares, diesel and petrol prices.

Housing, water, electricity and gas increased 32.2%, contributing another 2.1 percentage points. Higher electricity, LPG and kerosene prices were the main drivers.

Restaurants and hotels rose 13.7%, also contributing 2.1 percentage points, with higher takeaway food prices including lamb curry and pizza.

Food and non-alcoholic beverages, which carry the largest weight in Tonga’s CPI basket at 42.6%, increased 4.2% over the year.

On a monthly basis, inflation was relatively modest at 0.1% in July compared with June. Restaurant and hotel prices rose 4.7%, while food prices increased 1.5%, driven by local vegetables, seafood and root crops.

These increases were partly offset by a 6.0% fall in transport prices and a 7.4% decline in housing, water, electricity and gas prices during the month.

The July figures mark a significant acceleration from the 7.1% annual inflation rate reported for June.