Inflation's sharp fall in April: Bureau
Prices fell significantly in April 2020 as a 2.8 per cent month-to-month drop was recorded in the Consumer Price Index, new statistics revealed.
A new report - “Consumer Price Index for April 2020” - issued by the Samoa Bureau of Statistics on 11 May. On a yearly basis prices had risen slightly by 1.0 per cent, the report found.
According to the report, the decrease of the Index’s local goods component by 2.9 per cent from the previous month was due to lower prices for local food, electricity (kwh) and treated water, which was also the main contributor to the decrease of 2.8 per cent across the broader Index.
The Imported Goods Component also decreased by 2.8 per cent from the previous month.
Key findings included that the prices of water and electricity decreased significantly as regulated by the Government in response to the effects of COVID 19.
Price of fuel and imported food contributed to the overall decline in the C.P.I.
The housing, water, electricity, gas and other fuels index decreased by 10.7 per cent which was driven mostly by reduced electricity and water prices.
The food and non-alcoholic beverages index also decreased by 3.3 per cent.
The continued decrease of oil prices internationally in April 2020 has pushed local fuel prices down as reflected in the 1.8 per cent decline in the Bureau's transport index.
The average annual inflation for the year up until April 2020 was 2.0 per cent.
By comparison, increases were recorded for other sectors, including: goods and services, which were up by 0.9 per cent and furnishing, household equipment and maintenance material which rose 0.4 per cent.
No changes were recorded for the clothing and footwear, health, communication, education and restaurants indices.
The local goods component of the C.P.I. registered a decrease of 2.9 per cent month-on-month.
This decrease was mainly due to lower prices recorded for electricity: treated water, taro, rice, fresh fish (by the piece), Chinese cabbage, egg, ripe banana, tomato and head cabbage.
A decrease was noted on prices for imported food, fuel (petrol, diesel and kerosene), paint, cement, timber and televisions. Imported Goods more broadly fell 2.8 per cent accordingly.
The 10.7 per cent decrease in the Housing, Water, Electricity, Gas and other Fuels index was a result of the lower prices recorded for electricity (kwh), treated water, kerosene, paint, cement and timber.
Lower prices recorded for chicken leg quarter, taro, rice, fresh fish (piece), Chinese cabbage, egg, onion, ripe banana, potatoes, tomato and head cabbage is reflected in a 3.3 per cent decrease in the Food and Non-Alcoholic Beverages index.
The average annual inflation rate for the year ended April 2020 was 2.0 percent. For the twelve months ending April 2019 the inflation rate was 3.1 percent.