Inflation drops 4.1 per cent in September
Samoa’s Consumer Price Index (C.P.I.) fell by 4.1 per cent in September on a year-on-year basis.
On a monthly basis, the C.P.I. fell by 1.3 per cent when compared to August.
The figure was revealed in a new report “Consumer Price Index September 2020” issued by the Samoa Bureau of Statistics this week.
A change in the tariff structure for electricity prices triggered a rise in the price index in September 2020 but was offset by a decrease in the Food and Non-Alcoholic Beverages index.
The Consumer Price Index is a measure of inflation. It is designed to measure the change in prices for household goods purchased in Samoa.
The C.P.I. measures the change in prices by comparing the prices for chosen categories of goods on an annual and monthly basis to determine the average rate of inflation in prices.
The average rate of annual inflation for the year to September 2020 was 0.4 per cent.
By comparison, the year leading up to September 2019 the inflation rate was 1.0 per cent.
The Imported Goods Component registered a decrease of 2.6 per cent, reflecting lower prices for imported food, toilet paper and washing soap which also contributed to the decrease of 1.3 per cent in the All Items Consumer
Price Index. Local Components increased in cost by 0.1 per cent from the previous month.
A 1.3 per cent decrease in the Overall Index was mainly due to a decrease of 4.2 per cent in the Food and Non-Alcoholic Beverages index.
Miscellaneous Goods and Services registered a decrease of 0.4 per cent, while furnishing, household equipment and maintenance showed a decrease of 0.3 per cent.
Balancing out the declines were increases registered for the Housing, Water, Electricity, Gas and Other Fuels index with a 4.1 per cent rise; the Restaurants index grew by 2.3 per cent, and the Transport index rose by 0.8 per cent.
No changes were recorded for indices measuring alcoholic beverages and tobacco, clothing and footwear, health, communication, recreation and culture and education.
The Imported Goods Component of the Price Index decreased by 2.6 per cent when compared to the month prior.
This decrease was mainly due to lower prices for imported food, spirit washing soap and diaper.
Chicken leg quarter prices dropped, as did raw sugar, taro, fresh fish (piece, string and large), Chinese cabbage, stewing beef, cocoa (koko samoa), tomato, (giant taro) taamu and head cabbage which drove the overall 4.2 per cent decrease in the Food and Non-Alcoholic Beverages index.