Palau: cost of living

What is the inflation rate in Palau?

Consumer prices in Palau fell by an estimated 0.4% in 2025, after rises of 2.3% in 2024 and 11.6% in 2023, according to the Pacific Community's consumer price index data on the Pacific Data Hub, calculated from quarterly indexes from the Palau Statistics Office. The index stood at 100.5 in the first quarter of 2026, against 100.1 a year earlier (2025 = 100).

The IMF's 2025 Article IV staff report gives average inflation of 0.2% for fiscal year 2025 (October to September), down from 12.4% in FY2023, and projects about 2.8% for FY2026. The two sources use different periods.

Official sources: Pacific Data Hub: Palau consumer price index (CSV) · IMF: Republic of Palau, 2025 Article IV consultation, Country Report No. 26/22 (PDF)

What taxes does Palau have after the 2023 tax reform?

Palau's 2023 tax reform introduced the Palau Goods and Services Tax (PGST) and a Business Profits Tax, abolished import duties and lowered wage and salary taxes, according to Annex I of the IMF's 2025 Article IV staff report. It also cut the occupancy tax, replaced some tariffs with excises, including a carbon tax on liquid fuels, and replaced the gross revenue tax with a business licence fee for earnings of USD 50,000 or less.

The IMF table shows taxes and other revenue at 28.8% of GDP in FY2025. The President's July 2026 address says workers earning under USD 30,000 a year have received wage-tax refunds in 2024, 2025 and 2026.

Official sources: IMF: Republic of Palau, 2025 Article IV consultation, Country Report No. 26/22 (PDF) · Office of the President: State of the Republic Address, 22 July 2026 (PDF)

How fast are prices rising in Palau?

The latest figure from the IMF, for 2025, is -0.4%. Its high point since 2005 was 2023, at 12.8%; its low point was 2016, at -1.0%. It is 23rd highest of 24 in East Asia & Pacific, where the median is 2.2%. Worldwide: 160th of 165.

What is household spending per person in Palau?

According to the World Bank, household consumption per person in Palau was $10,589 in 2024. The peak was $11,553 in 2016 and the low $8,807 in 2005. Across East Asia & Pacific the middle value was $4,470, and Palau placed 6th highest of 22. World rank, highest first: 39th of 153.

What is food insecurity in Palau?

In 2024, moderate or severe food insecurity in Palau was 28.1%, according to the FAO. East Asia & Pacific median: 15.4%; Palau is 6th highest of 17. Of 135 countries with 2024 data, 56th highest.