Annual Inflation

In this 4^th quarter of 2022, the annual inflation for All Groups increased to 6.9%. In the same quarter of the previous year the rate was 5.4%, indicating an increase of 1.5 percentage points (Figure 1).

The largest contribution to the annual inflation for 4^th quarter 2022 came from the Transport division, which increased by 18.8% compared to the same quarter in the previous year (Figure 3).

Annual inflation rates increased for all the four states in 4^th quarter of 2022 (Figure 2). The highest inflation rate was recorded in Pohnpei at 10.3%, followed by Kosrae at 9.8%, Yap at 3.8% and Chuuk at 2.1%.

The high inflation rates in all four states were driven by the increasing prices in the Transport division, with Pohnpei at 24.0%, Kosrae at 22.4%, Chuuk at 11.9% and Yap 9.3% (Appendix 1, Table 3).