This is a 0.4 per cent increase from 2016 estimates of 6.6 per cent.
This will see domestic goods and services, medical services and housing prices to remain high.
According to the 2017 National Budget, the projected inflation rise for 2017 is reflective the back of several factors.
They include: the kina depreciation and slight pick-up in domestic economic activity relating to the National Elections, minor improvements in commodity prices, and construction of APEC facilities which are expected to boost income and spending.