What is inflation?
Inflation is the general rise in the price level of goods and services in an economy over time. When inflation is high, each Solomon Dollar buys less than it did before — meaning the purchasing power of money falls. Keeping inflation low and stable is the primary objective of the Central Bank of Solomon Islands.
How is inflation measured in Solomon Islands?
Inflation in Solomon Islands is measured using two key price indices produced by the Solomon Islands National Statistics Office (SINSO):
Honiara Retail Price Index (HRPI)
A consumer price index which shows the price level and changes in price level of goods and services in Honiara over time. This information forms the basis for calculating inflation in the economy.
National Consumer Price Index (CPI)
Tracks price changes across the Solomon Islands' domestic economy, providing a broader national picture of inflation and purchasing power.