The latest figures from the Tonga Statistics Department show that annual inflation reached 7.9% in May 2026, reflecting sharp increases in transport and housing-related costs that continue to affect household budgets across the country.
Transport recorded the steepest annual rise at 25.9%, while housing, water, electricity and gas increased by 25%, according to the statistics office. Alcoholic beverages, tobacco and kava rose by 12.8%, while food and non-alcoholic beverages edged up 1.2%.
On a monthly basis, inflationary pressure was also evident, particularly in housing costs, transport and utility services, indicating continued volatility in global fuel and import prices affecting Tonga’s small, import-dependent economy.
The Consumer Price Index is the official measure of inflation used by policymakers, including the National Reserve Bank of Tonga, to guide fiscal and monetary decisions. The index was recently rebased using updated household expenditure data, adding new goods such as mobile phones and vehicles.
Recent technical revisions carried out with Pacific Community support have also improved data quality, including updated price collection methods and adjustments to selected items and outlets across key consumption categories.
Officials say the changes ensure the CPI more accurately reflects current market conditions, strengthening its role in monitoring inflation trends and supporting economic stability in Tonga.
Weeks ahead may see continued pressure on household living costs, as fuel import prices and housing utilities remain sensitive to global market movements, while policymakers monitor inflation expectations closely heading into the second half of 2026 and potential seasonal demand changes across the economy nationally today.
