PNG Food Price Risks Point To Higher Inflation In 2026

Papua New Guinea faces accelerating food inflation in 2026, projected to reach 9%, due to the combined impact of an El Niño climate event, higher import costs, and continued currency depreciation. This is expected to push headline CPI inflation up to 6%.

Key Takeaways

• 1.Food inflation in Papua New Guinea is expected to re-accelerate in 2026, driven by El Niño-related supply risks, rising import costs, and kina (PGK) depreciation.
• 2.The report estimates weighted average food inflation will rise by around 9% in 2026, lifting headline CPI inflation to 6% from 4%.

Table of Contents

• PNG: food price risks point to higher inflation in 2026
• El-Niño to drive both tradeables and non-tradeables food price pressures
• Imported food inflation to remain elevated
• Risks skewed to the upside
• Conclusion
• Important Notice

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