What Papua New Guinea's Low Inflation Rate Means for Low-Income Earners — And What You Can Do

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What Papua New Guinea's Low Inflation Rate Means for Low-Income Earners — And What You Can Do

By Mioknet News | Finance Desk

Papua New Guinea's inflation rate stood at 0.67% in Q4 2024, a notable rise from -0.90% in Q3, but still relatively low compared to previous years. For context, the annual inflation for 2024 was about 0.6%, significantly down from 2.3% in 2023 and 5.25% in 2022. However, projections suggest a possible increase to 4.8% in 2025, according to the International Monetary Fund (IMF).

So, what does this mean for everyday Papua New Guineans—especially low-income earners? Here’s a breakdown and practical steps to consider.

What Is Inflation, and Why Should You Care?

Inflation refers to the general rise in prices of goods and services over time. When inflation is high, your money buys less. But when it's low—as it is now—it can mean prices are stable, or even decreasing, which can be a short-term relief.

Why the Low Inflation Matters Right Now

For low-income earners, this drop in inflation can mean:

  • Stable Prices: Basic goods like rice, canned fish, and fuel may not rise quickly.
  • Better Planning: It becomes easier to predict monthly expenses.
  • Saving Becomes Feasible: With prices steady, saving a little each week can go a long way.

But There’s a Catch — Inflation May Rise Again

The IMF projects that inflation could rise to 4.8% in 2025. This means prices might begin increasing again soon. So it’s wise to prepare now.

What Can Low-Income Earners Do?

Here are some practical tips:

1. Start Saving, Even Small

If you can put aside just K5–K10 per week, it can build up over time. Use mobile money services like MiBank, BSP Mobile, or Women’s Micro Bank to keep your savings safe.

2. Buy in Bulk (Where Possible)

While prices are low, buying staples like rice, oil, and tinned food in bulk can save you money in the long run.

3. Invest in a Garden

If you have access to land, planting basic food crops like kaukau, taro, or bananas can cushion you from rising food prices later.

4. Avoid High-Interest Debt

Try not to borrow money from lenders with high-interest rates. When inflation goes up, your loan repayments could become unmanageable.

5. Learn New Skills

Free or low-cost training in areas like tailoring, poultry, or small engine repair can help you earn side income in tough times.

Looking Ahead

While low inflation is a good sign today, preparing for tomorrow is crucial. With possible price hikes coming in 2025, now is the time to build your financial cushion.

At Mioknet, we’ll keep you updated with tips and tools to navigate the economy—whether you’re in the village, the settlement, or town.

Want more finance tips? Follow Mioknet for regular updates on saving, budgeting, and government support programs.

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