A member of parliament questioned the government on Tuesday about why the cost of living remains high despite Samoa’s inflation rate dropping to 1.8 per cent last year.

In her initial speech, Minister of Finance and MP for Palauli No. 1, Mulipola Anarosa Ale Molioo, explained that inflation measures the rate at which prices for goods and services change over time, rather than the actual price level. 

“Inflation is the rate at which prices increase or decrease, based on a Consumer Price Index (CPI) basket of 163 goods and services,” she said. “It is calculated from the Household Income and Expenditure Survey conducted by the Samoa Bureau of Statistics.”

Mulipola noted that while the inflation rate has slowed, prices remain elevated due to ongoing supply chain disruptions and other factors. “The cost of living depends on what households spend on food, travel, electricity, and other essentials,” she said. “Even though inflation has dropped, many goods are still expensive because of high import costs, fuel price increases, and delays in shipping.”

She added that natural disasters also affect market prices by disrupting local food supply and infrastructure.

Faleata No. 3 MP, Lealailepule Rimoni Aiafi, asked the Minister of Finance to explain how inflation had fallen while basic goods such as chicken, rice, and onions remained expensive.

“My question is, how has the inflation rate dropped as stated to 1.8 per cent, but the cost of living is still high?” he asked during parliament’s afternoon session.

Deputy Prime Minister and MP for Falealili No.1, Toelupe Poumulinuku Onesemo, told parliament that the government has taken note of concerns raised by the opposition and emphasised that a decline in inflation does not immediately translate into lower prices. 

"Just because inflation has gone down doesn’t mean the cost of living will drop right away,” he said. “We rely heavily on imported goods, so global market changes directly impact local prices.”

Toelupe also pointed to factors such as the minimum wage not aligning with the cost of living, as well as the rising costs of water and electricity, as ongoing contributors to Samoa’s high cost of living.

The Human Rights Protection Party (HRPP) deputy leader and MP for Anoamaa No. 2 also noted that the Competition and Consumer Commission needs to ensure fair market practices.

“There must be proper monitoring to make sure duties are paid and prices are fair,” he said.