Regulatory Alerts2026-05-29
Added · Updated
National Reserve Bank of Tonga Warns of Import Price Shock Risks to Inflation
The National Reserve Bank of Tonga issued a press release warning that ongoing Middle East conflicts and elevated global energy costs are creating significant upside risks to Tonga's domestic price stability. Headline inflation reached 5.5% in April 2026, driven primarily by imported goods, while core inflation remained high at 9.5%, prompting the central bank to monitor for second-round inflation effects. Governor Tatafu Moeaki indicated that headline inflation is expected to stay above the 5% reference rate with potential to reach double digits this year as the bank continues to modernize monetary policy tools.
Topics
monetary
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