Micronesia: cost of living

What is the inflation rate in Micronesia?

Consumer prices in the Federated States of Micronesia rose 1.3% in the year to the fourth quarter of 2025, down from 3.6% a year earlier, according to the Division of Statistics' consumer price index release of 27 March 2026. Food and non-alcoholic drinks rose 1.7%, and the alcoholic drinks, tobacco and narcotics group 6.3%, mainly because of betel nut prices.

The index is quarterly and is compiled for each of the four states as well as the nation. Kosrae had the highest rate, 4.6%, driven by food prices up 8.9%; Pohnpei was at 1.8%, Yap 0.5% and Chuuk 0.04%. The press release lists the items behind the change, including eggs, reef fish, fresh tuna and breadfruit.

Official sources: Division of Statistics: CPI 2025 quarter 4 · Division of Statistics: CPI 2025 quarter 4 press release (PDF)

What is the poverty rate in Micronesia?

41.2% of people in the Federated States of Micronesia lived below the national poverty line in 2013/14, and 9.9% below the food poverty line, according to the Division of Statistics' poverty and hardship page, based on the 2013/14 Household Income and Expenditure Survey. These are the latest official figures.

The national poverty line was US$4.34 a day per adult equivalent, or US$1,583.90 a year, of which food made up 42%. Each state has its own line, from US$3.33 a day in Chuuk to US$5.41 in Pohnpei, because prices differ. The SPC lists a new Household Income and Expenditure Survey for the country in 2026.

Official sources: Division of Statistics: Poverty and hardship · SPC Statistics for Development Division: Federated States of Micronesia

How fast are prices rising in Micronesia?

The IMF puts consumer price inflation in Micronesia at 5.4% in 2022. The peak was 8.4% in 2008 and the low -1.0% in 2016. It is 15th highest of 25 in East Asia & Pacific, where the median is 5.8%. Worldwide: 135th of 175.