East Timor’s Inflation Rate Rises to Yearly Peak

The annual inflation rate in East Timor eased to 1.0% in December 2025 from a one-year high of 1.2% in November. Main downward pressures came from lower inflation for food and non-alcoholic beverages (2.0% vs 2.4% in November) and continued deflation in alcohol and tobacco (-2.9% vs -2.8%), transport (-0.1% vs -0.5%), clothing and footwear (-0.3% vs -0.2%), and communication (unchanged at -0.2%). Inflation was also unchanged for housing (1.1%) and recreation and culture (0.5%), while prices remained flat for health (0.0%). In contrast, inflation picked up slightly for furnishings, household equipment, and routine maintenance (1.3% vs 0.9%). On a monthly basis, consumer prices fell 0.1% in December, reversing the 0.1% increase recorded in November. Meanwhile, tradable CPI rose 1.0% year-on-year, easing from 1.2% previously, while non-tradable CPI increased 1.1%, slightly below the prior 1.2% reading.

The annual inflation rate in East Timor rose to 1.2% in November 2025, accelerating from 0.9% in October, marking its highest level since November 2024. The main driver was higher inflation in food and non-alcoholic beverages (2.4% vs 1.8% in October), led by vegetables (+15.8%), coffee, tea, and cocoa (+1.9%), and oils and fats (+5.7%). Conversely, inflation eased for housing (1.1% vs 1.2%) and for furnishings, household equipment, and routine maintenance (0.9% vs 1.4%). Prices also declined for alcohol and tobacco (-2.8% vs -3.1%), transport (-0.5% vs -0.7%), and communication (unchanged at -0.2%). On a monthly basis, consumer prices grew 0.1%, rebounding from a 0.2% decline in the previous period. Meanwhile, the tradable CPI rose 1.2% year-on-year, up from a 0.8% gain in October, while the non-tradable CPI also increased 1.2% from a 1.9% rise previously.

The annual inflation rate in East Timor stood at 0.9% in October 2025, unchanged from the previous month. Prices edged lower for food and non-alcoholic beverages (1.8% vs 2% in September) and housing (1.2% vs 1.3%). Moreover, deflation softened for transport (-0.7% vs -0.8%) and alcoholic beverages and tobacco (-3.1% vs -3.5%), and it remained unchanged for clothing and footwear (0%), health (0%), education (0.4%), and communication (-0.2%). Meanwhile, costs increased at a faster pace for both furnishings, household equipment and routine household maintenance (1.4% vs 0.8%) and recreation and culture (0.5% vs 0.4%). On a monthly basis, consumer prices fell 0.2% in October 2025, reversing a 0.1% rise in the previous month.