Haiti Inflation Slows to 17% but Central Bank Keeps Rates on Hold
HAITI · ECONOMY
Key Facts
- —The country Haiti, a Caribbean nation of 11.9 million that imports far more than it exports, has shrunk seven years running.
- —Why it matters Annual inflation has been 17% or higher every month since at least January 2022, reaching 32.2% in October 2025.
- —What happened In a note on 27 September, the central bank left its main rates unchanged, citing June inflation of 18.9%.
- —The latest numbers Inflation eased to 17.5% in July and 17.0% in August, the lowest since at least January 2022.
- —What it means for you Prices still rise fast, but Haiti’s currency has held near 130.5 gourdes per US dollar for a year.
- —Still open The central bank has set no date for easing, and the impact of US migration rules on remittances is unclear.
Haiti inflation slowed to 17.0% in August, the lowest since at least January 2022, official figures show. In a note on Sunday 27 September, the central bank, the Banque de la République d’Haïti (BRH), held its main rates steady.
The note’s figures run to June, when inflation stood at 18.9%, before it eased to 17.5% in July. August’s rate is far below October 2025’s high of 32.2%, but well above the Dominican Republic’s 5.67% in June.
What the central bank reported
The note covers April to June, the third quarter of Haiti’s fiscal year, which runs from October to September. It shows inflation edging up to 21% in April, after state-set pump prices rose by 29.5% to 34.7%.
The BRH tied that fuel increase to the Middle East conflict that broke out in late February 2026. The authorities then cut fuel prices in May and June as world oil prices eased, and inflation fell back.
Core inflation, a measure that leaves out the most volatile prices, stood at 17.3% in June. The BRH credited a steady exchange rate, lower fuel bills and its own efforts to absorb spare cash held by banks.
A long run of high prices
Haiti inflation has been high for years, not months. It hit 49.3% in January 2023, in figures from IHSI, the national statistics institute, published by the BRH.
Economist Kesner Pharel set out the longer trend on the Panel Magik programme in February, Vant Bèf Info reported. By his count, inflation averaged 6.3% in 2010–14, 13.5% in 2015–18 and 26.4% in 2019–25.
He tied the worst spells to peyi lòk, the nationwide shutdowns that halted business repeatedly from 2019. He put the overall poverty rate near 70% and called for deep reforms and a return to political stability.
The BRH itself stresses that slower inflation is not the same as a lower cost of living, Juno7 reported on 7 September. Prices still climbed 1.6% in August alone, only more slowly than during most of 2025.
Why the gourde has barely moved
The BRH reference rate was 130.50 gourdes per US dollar on 29 September, against 130.67 a year earlier. Over a year in which consumer prices rose by 17%, the gourde moved by just 0.13%.
Haiti depends heavily on imports, so a steady gourde slows the rise in the price of imported goods. In the April–June quarter, imports reached US$1.31 billion against exports of just US$118.79 million, the BRH says.
Money sent home by Haitians abroad, US$1.31 billion in the quarter, more than covers that gap. From October to June these remittances reached US$3.82 billion, up 15.55% on a year earlier.
In the quarter the BRH bought a net US$98.98 million and says reserves cover over seven months of imports. IMF staff also judged reserves adequate after a remote review mission from 14 to 25 September, Vant Bèf Info reported.
What the central bank decided
Commercial banks must still keep 40% of their deposits in gourdes as reserves at the BRH. For deposits in foreign currency the share is 53%, which keeps a large part of bank money away from lending.
The BRH also left the rates on its short-term bills at 6%, 8% and 11.5% for seven, 28 and 91 days. None of these tools has changed since August 2022, the note says.
Even the top rate of 11.5% sits well below August’s inflation of 17.0%. After inflation, money held in these bills still loses value, though the gap is far smaller than in 2025.
The stock of BRH bills rose 57.9% in the quarter, to 26.93 billion gourdes (US$206 million) on 30 June. The BRH sells them to banks to absorb spare cash that could otherwise push up prices and the dollar.
Food still costs a fifth more than last year
Food and soft drinks cost 19.4% more in June than a year earlier, according to the August update from FEWS NET. The famine early-warning network said inflation “continues to decline, without improving the purchasing power of poor households.”
It expects crisis-level hunger, phase 3 on a five-step international scale, to stay widespread until January 2027. Emergency conditions, phase 4, are expected to persist in Port-au-Prince, Cité Soleil, Cornillon and Ganthier.
INDDESC, a Haitian institute for economic, social and cultural rights, tracked basic goods from May 2024 to January 2026. It found price rises of 55% to over 83% for staples such as rice, oil, bread and soap, Rezo Nòdwès reported.
The group said many households spend more than 60% of their income on food and hygiene. It called for social protection, price regulation and support for local production.
Security still sets the limits
The BRH expects the economy to shrink by 1.5% to 1.9% in fiscal 2026, an eighth straight year of contraction. It names insecurity as the main obstacle, because it disrupts supply chains and the movement of people and goods.
A UN Office on Drugs and Crime explainer in January 2026 put gang control at an estimated 80% to 90% of Port-au-Prince. Since a transitional presidential council handed over on 7 February 2026, Prime Minister Alix Didier Fils-Aimé has led the executive alone.
FEWS NET said the deployment of the UN-authorised Gang Suppression Force in the Artibonite region could bring local security gains. Its renewal vote is covered in Haiti Gang Suppression Force Faces UN Renewal Vote After Reprisal Kills at Least 11.
Two readings of the same figures
Official voices stress stability, pointing to a steady gourde and slowing inflation. IMF staff said Haiti met all but one end-June target of its IMF-monitored programme, Vant Bèf Info reported.
IMF staff expect Haiti inflation to ease to about 16% but the economy to shrink for an eighth straight year. They listed insecurity, oil prices and weaker remittances, including after the end of Temporary Protected Status in the US, as risks.
Critics read the same data more darkly. The Haitian news site Rezo Nòdwès wrote in July that every indicator was turning red except remittances.
It also criticised central-bank funding of the deficit, which the BRH puts at 32.64 billion gourdes (US$250 million) by 30 June. The BRH says its lending to the government was the main driver of growth in the money it issues.
What comes next
The BRH says policy will stay cautious and depend on inflation, the exchange rate, bank cash and the state’s borrowing needs. It warns that Middle East tensions, the hurricane season and tighter migration rules could push prices up again.
The slowdown in Haiti inflation does not mean prices are falling, and it does not mean the economy is recovering. It means prices are rising more slowly, in an economy the BRH still expects to shrink this year.
It is not known when the BRH might lower its rates, since the note gives no timetable. Nor is it clear how far tighter US migration rules will cut remittances, the main support for the gourde.
For residents paid in dollars, a stable gourde means local prices in dollar terms rise at about the inflation rate. Those earning gourdes lose buying power whenever their pay rises more slowly than prices.
Frequently Asked Questions
What is the BRH?
The Banque de la République d’Haïti is Haiti’s central bank, founded in 1979. It sets reserve rules for banks and sells short-term BRH bills to absorb spare cash.
Are prices in Haiti falling?
No. Annual inflation slowed to 17.0% in August from 32.2% in October 2025, but prices still rose 1.6% in August alone.
Why is the gourde so stable when inflation is high?
Remittances from Haitians abroad, US$3.82 billion from October 2025 to June 2026, bring in a steady flow of dollars. The BRH also steps into the currency market to limit swings.
How does Haiti inflation compare with the Dominican Republic?
It is far higher. The Dominican Republic, which shares the island of Hispaniola with Haiti’s 11.9 million people (a 2024 IHSI estimate), had inflation of 5.67% in June, the BRH note shows.
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