Inflation in the country has risen after more than a year of deflation.
Recent data released by the Reserve Bank of Fiji shows headline inflation increased to 1.8 percent in April, driven by higher fuel, food and kava prices.
Core inflation also rose to 1.7 percent, mainly due to increased kava prices.
Reserve Bank Governor Ariff Ali says inflation is expected to continue rising in the near term because of external pressures, particularly higher global fuel prices linked to the ongoing conflict in the Middle East.
He says these pressures are already affecting local transport and electricity costs.
Despite rising inflation, the Reserve Bank Board has decided to keep the Overnight Policy Rate unchanged at 0.25 percent to support economic stability.
Ali says economic activity continues to be supported by tourism and remittances, although there are early signs growth is beginning to moderate.
Foreign reserves remain stable at around $3.4 billion, while the banking system continues to record strong liquidity and lending growth.
The Reserve Bank says it will continue monitoring developments closely and take action if necessary to safeguard the economy.
