Solomon Islands: cost of living

Why are prices rising in the Solomon Islands?

Betel nut prices alone contributed 2.5 percentage points, or 54%, of the 4.6% headline inflation recorded in June 2026, according to the Central Bank of Solomon Islands. Higher transport and utility prices linked to global oil prices accounted for the remainder.

The central bank says core inflation, which strips out volatile items, is projected to stay below 1%, which points to weak underlying demand rather than broad price pressure. It expects inflation to reach around 5 to 6% by the end of 2026, reflecting base effects, oil prices and weather pressures on local food supply, and to ease to around 4.4% from March 2027.

Official sources: CBSI: monetary policy stance

Are prices rising faster in Honiara or the provinces?

In August 2026, inflation on a three-month moving average was 4.0% in Honiara, 4.2% in Noro and 3.0% in Gizo, while prices in Auki fell 1.8%, according to the National Statistics Office's consumer price index for August 2026. The national rate across the four towns was 3.7%.

The index is built from prices in these four towns only, weighted together. Town rates can move quite differently from month to month because local food and betel nut prices vary. In August, the alcohol, tobacco and narcotics group, which includes betel nut, rose 10.2% nationally in the month.

Official sources: SINSO: National Consumer Price Index, August 2026 (PDF)

What was inflation in the Solomon Islands for 2025 as a whole?

Annual inflation in the Solomon Islands for 2025 was 3.4%, down from 4.2% in 2024, according to the National Statistics Office's December 2025 consumer price index release. Imported inflation was 0.8% and domestic inflation 4.4%.

The annual figure is calculated on a three-month moving average basis for the calendar year. Most of the price pressure in 2025 came from domestic items rather than from imports. In December 2025 the national index was 0.5% lower than a year earlier.

Official sources: SINSO: National CPI December 2025

What is the government doing about fuel prices in the Solomon Islands?

In May 2026 the Solomon Islands Government introduced fuel-related tax exemptions and strengthened its fuel price-smoothing measures to limit the effect of higher world oil prices, according to the Central Bank of Solomon Islands Monetary Policy Report of September 2026. The bank says these measures partly contained the pass-through of higher fuel prices.

The bank's business survey found that 89% of businesses said higher fuel prices linked to the Middle East conflict affected their operations in the first half of 2026. The exemptions are temporary and cost the government some revenue.

Official sources: Central Bank of Solomon Islands: Monetary Policy Report, September 2026 (PDF)

How many people in the Solomon Islands live in poverty?

35.4% of people in the Solomon Islands were multidimensionally poor in 2019, down from 43.5% in 2009, according to the Multidimensional Poverty and Spatial Disparities report published by the National Statistics Office with the World Bank. About 249,100 people were counted as poor.

This measure uses census data on things like education, health, housing and water rather than income. Rural poverty fell from 49.7% to 42.7%. Makira-Ulawa (50%), Guadalcanal (47%) and Malaita (43%) had high rates. Results from the 2024-25 household income and expenditure survey, which will give an income-based measure, had not been published by 15 October 2026.

Official sources: SINSO and World Bank: Multidimensional Poverty and Spatial Disparities 2009-2019 (PDF)

What is the Solomon Islands' inflation rate?

The latest figure from the IMF, for 2025, is 3.4%. The peak was 17.3% in 2008 and the low -0.6% in 2015. East Asia & Pacific median: 2.2%; the Solomon Islands is 6th highest of 24. World rank, highest first: 73rd of 165.

What is household spending per person in the Solomon Islands?

In 2024, household consumption per person in the Solomon Islands was $1,443, according to the World Bank. No year since 2005 has been higher. East Asia & Pacific median: $4,470; the Solomon Islands is 20th highest of 22. Of 153 countries with 2024 data, 118th highest.