Inflation Rate (CPI): Timor-Leste

Analysis# Timor-Leste Inflation Rate (CPI) Timor-Leste's inflation rate stands at 1.8% in 2026, reflecting a dramatic 50% decline since 2001. The country experienced its peak inflation of 13.2% in 2011, driven by post-independence economic pressures, before falling to a deflationary low of -1.5% in 2016. Current inflation remains well below historical highs and close to moderate levels, positioning the economy in a relatively stable price environment. Recent years reveal substantial volatility, particularly between 2021 and 2023, when inflation surged to 8.4% amid global supply chain disruptions. The sharp deceleration from 8.4% (2023) to 0.9% (2025) demonstrates rapid disinflation, with the 2026 reading of 1.8% suggesting stabilization in the low single digits. This cooling trajectory indicates moderating price pressures after the 2021–2023 surge.