Papua New Guinea inflation remains uneven despite low headline rate

Inflation in Papua New Guinea (PNG) showed a mixed picture in the first quarter of 2026, remaining relatively subdued overall but exhibiting considerable variation across the nation, according to Westpac's latest PNG Economic Update and Outlook.

The headline inflation rate, as measured by the Consumer Price Index (CPI), recorded a modest increase of 0.50% compared to the previous quarter. On an annual basis, the year-on-year inflation stood at 2.24% for the March quarter.

Despite the relatively low headline figure, the report highlights that price pressures are not uniform throughout the country. This suggests that while the national average may appear stable, specific regions could be experiencing more significant fluctuations in the cost of goods and services.

Westpac's analysis indicates a continued divergence in price trends, underscoring the complex economic landscape within PNG. Further details on the specific regional variations and the factors contributing to these price pressures are expected in the full economic update.