A report by the Asian Development Bank on the Pacific's Inflation outlook for April 2023 states that Samoa has the highest inflation rate in the Pacific.

The report states that Samoa's inflation rate is 10.2 per cent which is the highest, Tonga (9.4%), Cook Islands (7.7%), Palau (5.0%), Papua New Guinea (5.0%), Solomon Islands (4.5%), Fiji (4.2%), Vanuatu (4.0%), Kiribati (3.7%), Marshall Islands (3.7%), Federated States of Micronesia (3.6%), Tuvalu (3.3%), Nauru (2.5%), and Niue has no data.

World Bank statistics also clarify that the inflation rate for consumer prices in Samoa moved over the past 59 years between -2.9 per cent and 33.0 per cent and for 2021, an inflation rate of 3.1 per cent was calculated.

During the observation period from 1962 to 2021, the average inflation rate was 6.3 per cent per year. Overall, the price increase was 3,188.97 per cent. An item that cost 100 talas in 1962 costs 3,288.97 talas at the beginning of 2022.

Meanwhile, one of the viral products locally sold with a massive increase is a round cabbage which was normally $25 and varies at different shops but had drastically increased to $100 in a period of one month, Samoa Observer understands.

In December last year, a Central Bank of Samoa report also highlighted that Samoa's headline inflation rate was 11.3 per cent at the end of October 2022, substantially well above its medium-term target of 3.0 per cent. 

According to the report, this was due to the hike in the cost of fuel and gas as a result of the Russian invasion of Ukraine at the beginning of this year. 

"In effect, prices such as imported food, construction materials, household items and fuel have risen steadily in 2021 and 2022, culminating in Samoa’s headline inflation rate at 11.3 per cent at end October 2022, substantially well above its medium-term target of 3.0 per cent," the report stated. 

Furthermore, the report also stated that the total goods and services produced (called Gross Domestic Product or G.D.P.) in the year up to June 2022 (fiscal year 2021/2022) amounted to around $1.85 billion (real G.D.P.), which was 6.0 per cent lower than the 12 months to June 2021 (FY 2020/2021).

The data was collected from the latest National Accounts data from the Samoa Bureau of Statistics. 

"This marks three consecutive years of negative growth with FY 2019/2020 falling by -3.1 percent, FY 2020/2021 decreasing by -7.1 per cent and now another -6.0 per cent in FY 2021/2022," the report stated. 

"The cause of this prolonged recession in the Samoan economy started with the Measles Outbreak in the December 2019 quarter, which was then followed by the COVID-19 pandemic in the March 2020 quarter right up to the June 2022 quarter. 

"The international border lockdown and other self-isolation measures to safeguard the people of Samoa from COVID-19, resulted in a substantial economic loss of real GDP (of approximately $234.0 million) from April 2019 - March 2020 to April 2020 - March 2021, and a further $57.3 million drop to April 2021 - March 2022. 

"With the strict COVID restrictions implemented around the world during 2020, global shipping and trade fell significantly. 

"This led to acute supply shortage problems around the world, which began to see global commodity prices increase starting from January 2021 right up to now. 

"This has gradually seeped through to Samoa’s inflation rate through its imported (prices) inflation."

Nevertheless, the closure of Samoa's international borders as preventative measures to prevent the spread of COVID-19 from March of 2020 had resulted in a complete loss of visitor earnings. 

It dropped from over $500 million to zero for at least two years as well as loss of employment opportunities for many working in the tourism industry.