Papua New Guinea: cost of living

What is happening to fuel prices in Papua New Guinea?

The government has run a fuel relief package since April 2026 aimed at keeping retail fuel prices at March levels, according to the Department of Treasury's 2026 Mid-Year Economic and Fiscal Outlook. In June 2026 the government confirmed that direct fuel subsidies apply only to the retail sector.

The Treasury says rising oil prices are a major risk for inflation and that commercial fuel costs may pass through to other prices. In the March quarter of 2026, it reports, petrol prices fell 0.9% and diesel rose 0.7% on the quarter. In the first half of 2026, K708.7 million was moved from other parts of the budget to pay for fuel subsidies.

Official sources: PNG Treasury: 2026 Mid-Year Economic and Fiscal Outlook

How fast are prices rising in Papua New Guinea?

Headline consumer prices in Papua New Guinea rose 2.2% in the year to the March quarter of 2026, down from 5.3% a year earlier, according to the Department of Treasury. Food and non-alcoholic beverages rose 0.7%, housing 1.5%, transport 3.0% and health 5.0%.

Underlying inflation, which leaves out volatile items, was 1.7%. The Treasury forecasts headline inflation of 4.5% for 2026. The kina depreciated 3.0% against the US dollar in the first half of 2026, which raises the price of imported goods. The CPI is compiled by the National Statistical Office each quarter.

Official sources: PNG Treasury: 2026 Mid-Year Economic and Fiscal Outlook · National Statistical Office

How fast are prices rising in Papua New Guinea?

According to the IMF, consumer price inflation in Papua New Guinea was 4.4% in 2025. Since 2005 it has ranged from 0.6% (2024) to 10.8% (2008). East Asia & Pacific median: 2.2%; Papua New Guinea is 5th highest of 24. World rank, highest first: 41st of 165.

What is food insecurity in Papua New Guinea?

In 2019, moderate or severe food insecurity in Papua New Guinea was 57.3%, according to the FAO. It is 1st highest of 21 in East Asia & Pacific, where the median is 14.9%. Of 135 countries with 2019 data, 17th highest.