The CPI annual report released by the Bureau of Statistics has revealed that inflation reached a 13-year high in 2025.

Inflation stood at 4.04 percent last year. This is the highest rate since inflation climbed to double digits in 2011 and 2012.

Inflation in Male' stood at 3.4 percent while it stood at 4.9 percent in the atolls.

The biggest price hikes were in tobacco and areca nuts, with an 80 percent increase compared to 2024. This was due to higher demand following duty hikes and a vape ban.

Restaurants and accommodation services saw the second biggest price with 5.5 percent. According to the Bureau of Statistics, this was due to change in government policies.

Another reason for the rise in restaurant prices was the increase in food prices. Food prices rose 4.7 percent last year. Among the items with the biggest price increases were many commonly used fruits and vegetables.

Food prices rose due to difficulties in obtaining foreign currency for importers, the depreciation of the local currency and the higher value of dollars in the black market.

In line with the trend in previous years, the biggest price decline was in telecommunications services. Prices in the sector fell 4.6 percent.