The Consumer Price Index (CPI) for November 2024 has reflected a complex economic landscape in Samoa, with a 2.0 per cent increase compared to the same month last year, yet a modest 0.8 per cent decline from October 2024. 

Notably, essentials such as food and non-alcoholic beverages drove the annual escalation, while imported goods and local produce experienced significant price hikes. 

This report underscores the ongoing challenges faced by households amidst fluctuating market trends and varying inflation rates.

According to the latest CPI report released by the Samoa Bureau of Statistics, the increase of 2.0 per cent in November 2024 marks a notable shift from the 8.0 per cent inflation rate recorded a year prior. 

The report highlights that the CPI increased by 1.2 per cent for imported goods, driven predominantly by price spikes in everyday items like chicken leg quarters, raw sugar, milk, and essential medications like amoxicillin tablets. 

Meanwhile, local goods saw an even sharper increase of 2.9 per cent, particularly influenced by surging prices for local produce including taro, fresh fish, and vegetables such as Chinese cabbage and tomatoes.

"The price of staples continues to rise, putting a strain on household budgets," said Lealiifano Tualaulelei, an economic analyst at the Samoa Economic Development Agency. "Families are feeling the pinch, especially with the rapid increases in food prices overshadowing any relief from lower transport costs."

Food and non-alcoholic beverages emerged as the standout contributors to this year's CPI increase, accounting for a significant 3.5 percentage points of the overall rise. 

Within this category, chicken leg quarters soared by 22.9 per cent, while fresh fish and tomatoes rose by 17.0 per cent and 40.3 per cent respectively. Such steep price increases have sparked concerns among consumers and policymakers alike.

The report also identified Alcoholic Beverages, Tobacco, and Narcotics as a contributing factor to inflation, rising 1.9 per cent due to heightened prices for cigarettes and Samoan kava. Meanwhile, the Furnishings, Household Equipment & Maintenance sector experienced a 2.3 per cent increase, attributed primarily to the rising costs of mattresses and refrigerators.

Conversely, a few sectors reported declines. The Transport Index fell by a striking 11.0 per cent, largely due to decreased fuel prices, which offers some relief to consumers. The Housing, Water, Electricity, Gas, and Other Fuels index also saw a decline of 2.5 per cent, driven by lower kerosene and cement prices.

“The disparity between rising food costs and decreasing transport costs illustrates the uneven nature of this inflationary environment,” commented Ava Maile, a local business owner. “It’s challenging to navigate these fluctuations, especially when consumers are tightening their belts.”

Underlying inflation data painted a more nuanced picture, revealing a 4.4 per cent increase in the underlying index compared to November 2023, with imported items rising by 5.9 per cent and local items by only 0.8 per cent. This suggests that while certain staples are becoming more expensive, other sectors may remain stable or even decline, potentially balancing out the overall economic impact.

The average annual inflation rate for the year ending November 2024 stands at 2.5 per cent, a significant drop from the previous year. This indicates that while prices are increasing, the rapid inflation witnessed in prior years may be stabilising.