The annual inflation in the 4^th quarter of 2023 was 4.7% for All Groups. In the same quarter of the previous year (2022) the rate was 6.5%, indicating a decrease of 1.8 percentage points (Figure 1).

 The largest contributions to the annual inflation for 4^th quarter 2023 came from the Food and non-alcoholic beverage division, which increased in prices by 9.2%.(Figure 3).

Annual inflation differs by state .The highest inflation rate that was recorded in this quarter came from Kosrae at 6.6%, followed by Chuuk at 6.0%, Yap at 4.2% and Pohnpei at 3.9%.

The high inflation rate in Kosrae appears to be caused by the increasing prices for the Transport division, which was recorded at 21.4%. Whereas, in Pohnpei, Chuuk and Yap the inflation rates were driven by the increasing prices in the Food and non-alcoholic division, which recorded at 10.4%, 14.8%, and at 10.2%, respectively.