Country Report Tonga
- ID: 2138734
- November 2015
- Region: Tonga
- 17 Pages
- The Economist Intelligence Unit
On November 11th the National Reserve Bank of Tonga (NRBT, the central bank) published data showing that consumer prices were down by 1.9% year on year in September.
The rate of Tonga's consumer price deflation has accelerated from August, when prices fell by 1% year on year, to reach -1.9% in September. This reflects a 2.1% month-on-month fall in prices that was precipitated by declines in both domestic and imported prices.
In year-on-year terms, the driver of deflation was a 5.2% fall in imported prices in September, which reflects lower prices for imported food as well as the decline in global oil costs, which have resumed their fall after steadying over the third quarter of 2015. The decline in the latter has lowered local transport and electricity prices. Although some categories of imported prices, including tobacco and alcohol, and clothing and footwear, recorded increases, they were not on a scale sufficient to offset larger declines in the food and energy components.