The Reserve Bank of Fiji says inflation is easing and is expected to be 3-point-5% at the end of the year.
In April and May this year inflation had risen to 6%.
The Fiji Times quotes the Reserve Bank governor, Savenaca Narube, as saying domestic pressures have eased but higher oil prices continue to pose risks to both inflation and Fiji's foreign reserves.
The Bank has decided to leave its monetary policies unchanged after imports slowed down and stabilized the level of foreign reserves.
Mr Narube says the Reserve Bank has allowed liquidity in the financial system to rise, which has led to lower interest rates.