Inflation

2025 posted an average annual inflation rate of 3.5%, down from 4.2% in 2024, and recorded the lowest average rate since 2020 (2.2%). Food & Non-Alc. Beverages drove most of 2025 inflation before Housing & Utilities took over as the main driver in October, due to rent price hikes in that month, alongside gradual declines in actual food prices as the year progressed. Alcohol & Tobacco also gradually reduced its contribution, as actual price cuts in beer during the middle of the year coincided with relatively slow price rises in spirits and tobacco products. Transport was not a major contributor in 2025, as fuel prices were kept stable throughout the year, although base effects stemming from volatile fuel prices in 2024 saw its contribution flip twice during the year. Broadly, 2025 inflation shifted from commodity-linked goods towards stickier, domestically driven components (e.g. services). Although inflation cooled in many key baskets (8 out of 12 saw lower inflation at the end of the year vs. 2024, underlying price pressure persists with core inflation above headline inflation in 2025.