Prices of basic items dropped in May

Consumer price index data released by the Samoa Bureau of Statistics show prices for basic items have dropped between May and June this year.

The Consumer Price Index statistics for June 2020 was 0.8 per cent lower than May 2020 and 3.3 per cent lower than June 2019.

The cost of transport and housing, water, electricity, gas and other fuels divisions were the main contributors to the overall decrease of 0.8 percent in the all division consumer price index.

The statistics released by the Bureau was revealed through the Consumer Price [C.P.I.] which measures the rate of inflation for Samoa, and was designed to measure the change in prices for goods purchased by households in Samoa.

The C.P.I. measures the change in prices by comparing the prices for a basket of goods and services at the collection period with the price for the same goods in a base period.

Three of the three key findings comprises the transport index which decreased by 5.4 per cent driven by reduced fuel price, the health index which also decreased by 2.5 per cent and the average annual inflation for the year ended June 2020 which dropped by 1.5 per cent. 

The decrease of the imported goods component by 1.8 per cent reflects lower prices for fuel and medicine, which also contributed to the decrease of 0.8 per cent in the all items consumer price index. 

The local component recorded an increase of 0.2 per cent from the previous month.

The 0.8 per cent decrease in the overall index was mainly due to a decrease of 5.4 per cent in transport index. Health index recorded a decrease of 2.5 per cent, while housing, water, electricity, gas and other fuel and furnishing, household equipment and maintenance indices showed decreases of 0.7 and 0.3 per cent respectively.

On the contrary, increases were registered for alcoholic beverages and tobacco index with 0.2 per cent, miscellaneous goods and services index with 0.2 per cent and food and non-alcoholic beverages index with 0.1 per cent. 

No changes were recorded for the clothing and footwear, communication, recreation and culture, education and restaurants indices. 

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