The average cost of consumer goods in Samoa rebounded slightly in February despite a year in which the nation's pandemic-struck economy also slid into deflation, new figures show. 

Samoa’s Consumer Price Index, which measures the average price of consumer goods, grew by 1.9 per in February when compared to the previous month. Compared to February last year, the index was some 4.4 per cent lower by comparison. 

But the average annual inflation for the year ending February 2021 was negative 3.2 per cent, the new study by the statistics bureau found. 

Deflation, or a drop in the price of goods, is typically associated with a contraction in the nation's economy, caused by lower consumer demand and lower levels of money circulating through the nation's economy. 

The figures are revealed in a new report issued by the Samoa Bureau of Statistics: “Consumer Price Index February 2021”.

The Consumer Price Index (C.P.I.) is a measure of the cost of household consumer goods and services and measures any rise or fall in their price. It also measures the rate of inflation in Samoa. (The C.P.I. gives the government, businesses, and citizens an idea about prices changes in the economy, and can act as a guide in order to make informed decisions about the economy.)

“The 1.9 per cent increase in the overall index was mainly due to an increase of 4.3 per cent in the housing, water, electricity, gas and other fuels index,” read the report. 

The report added that the food and non-alcoholic beverages index also recorded an increase of 3.3 per cent, while transport, health and recreation and culture indices showed increases of 2.5, 1.2 and 0.3 per cent respectively.  

In comparison, decreases were recorded for other divisions namely education with 4.7 per cent, furnishing, household equipment and maintenance with 1.5 per cent, miscellaneous goods and services with 1.3 per cent, clothing and footwear with 0.8 per cent and alcoholic beverages and tobacco with 0.3 per cent.

There were no changes recorded for communication and restaurants indices.  

The imported goods component of the C.P.I. registered an increase of 2.6 per cent when compared to the previous month. This increase was mainly due to higher prices recorded for imported food, fuel (petrol, diesel and kerosene) and medicine.

Whereas increased prices recorded for water tariff, fresh fish (piece and large), Chinese cabbage, koko samoa, cucumber, tomato and head cabbage have resulted in the 1.2 per cent increase in the local good component.

Furthermore, higher prices recorded for water tariff is reflected in the 4.3 per cent increase in the housing, water, electricity, gas and other fuels index.

An increase of 3.3 per cent in the Food and non- alcoholic beverages index was a reflection of the higher prices recorded for chicken leg quarter, fresh fish (piece and large), mutton flap, Chinese cabbage, koko samoa, pig trotter, potatoes, cucumber, tomato and head cabbage. 

The transport index recorded an increase of 2.5 per cent higher due to the rise in prices recorded for fuel (petrol and diesel).

The 1.2 per cent increase in the health index influenced by the higher prices recorded for medicine (amoxicillin tablets). In addition, the 4.7 per cent decrease in the education index was a result of the lower prices recorded for Parents Teachers Association (P.T.A.) fees. 

The yearly deflation figures follow decreases in the nation's Gross Domestic Product, which declined by more than 16 per cent in the September quarter of last year. Figures released by the Asian Development Bank late last year predicted a further contraction of more than 10 per cent this year.