Aruba Now Forecasts Deflation for 2025: –0.1%
ORANJESTAD – Aruba is now expected to experience slight deflation in 2025, according to the Ministry of Finance, Economic Affairs and Primary Sector.
New figures from the Department of Economic Affairs, Commerce and Industry (DEZHI) project inflation at –0.1%, marking a sharp shift from earlier forecasts.
The Consumer Price Index (CPI), published monthly by the Central Bureau of Statistics (CBS), tracks the average movement of prices paid by consumers. While CBS reports current price developments and does not issue forecasts, DEZHI includes inflation projections in its twice-yearly Economic Outlook.
DEZHI initially projected 1.7% inflation for 2025 at the end of 2024, later adjusting that estimate to 1.9% in May 2025. But in its latest analysis, the department now expects prices to fall slightly next year—driven by both international and local developments.
CBS’s October figures show year-on-year inflation of 0.2%, continuing a downward trend since Aruba’s 2022 inflation peak of 5.5%. Falling global oil prices and the reduction of excise duties on gasoline and diesel—introduced on 1 May 2025—have helped push the projected inflation rate into negative territory.
According to Minister of Finance, Economic Affairs and Primary Sector Geoffrey Wever, price levels directly affect the purchasing power of all Arubans. He emphasized that the island “also imports inflation” from abroad and noted that the excise-tax cuts form part of the government’s strategy to cushion households from rising international costs.
Minister Wever thanked CBS for its consistent monitoring of price developments and encouraged the public to visit the bureau’s website for detailed official data.
