2nd Quarter inflation rate shows slight increase led by the Transportation group
Pago Pago, AMERICAN SAMOA — The inflation rate in American Samoa has increased slightly to 1.5% compared to the previous quarter. Both the quarterly percentage change of the Consumer Price Index (CPI) and the annual percentage change are 1.5%. The Transportation Group is the highest expenditure group this quarter at 4.5%, followed by the Food Group at 2.6%, which is usually the leading expenditure group.
The Medical Care Group came in third, with an increase of 1.9%. Other groups that have increased in this second quarter are the Education & Communication Group (0.8%), Other Goods & Services (0.6%), Apparel Group (0.4%), and Entertainment Group (0.1%). Two groups, however, experienced a decrease: the Alcoholic Group (-1.3%) and the Housing Group (-0.9%).
QUARTERLY GROUP MOVEMENTS
Some notable increases from the Food Group are from two products, which increased by more than 25.0%. It is not news that our territory went through an egg shortage, and with limited eggs on island, the costs of eggs went up. The average egg price was $2.42, but last quarter reported an increase in price by 26.9% and a cost of $3.07. Breadfruit prices also increased this quarter by 30.0%. Other foods that have increased are turkey tails (10.2%), children’s food (8.8%), chicken legs (7.0%), chicken wings (5.2%), and whole chicken (5.2%). Aside from the overall increase, some food items saw a decrease of more than 5%: potatoes (-9.5%), cucumber (-8.7%), McDonald's meal (-7.6%), oranges (-6.5%), Doritos chips (-5.4%), and rice (-5.4%).
The Alcohol Group increased to 1.4% this quarter. Both distilled spirits and beer prices increased; distilled spirits increased by 4.0% and beer by 0.9%. However, wine prices remain unchanged.
The Housing Group continues to decline, with a change of -0.6%. Some of the household products most responsible for the decline include other living room furniture (-6.9%), chain saws (-5.7%), and washing machines (-5.3%). The Apparel Group also experienced a slight decline this quarter, at -0.3%. Most Apparel items remained constant, with only three showing an increase: infant diapers (3.3%), baby wipes (2.7%), and t-shirts (2.4%).
Non-prescription drugs increased by 5.8% this quarter. This was the only change reported in this group, while all the other medical items remained the same price. The Entertainment Group also experienced a decrease of -2.7%. Electronic item repairs (-16.7%) and flat-screen TVs (-5.2%) contributed to this decrease. However, there were increases in bingo paper (1.8%) and cat food (1.0%).
The Education & Communication Group increased this quarter by 0.9%. Most items in this group remain unchanged, while only two items have changed since last quarter: school registration, which increased by 0.9%, and postal service charge, which increased by 0.3%. In addition, the Other Goods and Services Group also went through an increase of 1.7%. Soap (3.0%), toothpaste (1.3%), cigarettes (0.4%), and shampoo (0.4%) were all the items that have increased in price this quarter. Only deodorant decreased in price by -0.2%
Transportation is the top expenditure group for this quarter, with an 8.9% increase. Out of the fourteen items monitored for this group, only four contributed to the increase: gas, the most responsible component with 6.0%, Automotive purchase (2.9%), auto tune-up (1.0%), and diesel (0.4%). Average gas and diesel prices are as follows:
Gas: Q2/2024 — $4.74 up from $4.53 in Q1/2024
Diesel: Q2/2024 — $4.52 up from $4.50 in Q1/2024
COMPARATIVE COST OF SELECTED GOODS AND SERVICES IN MANU’A
To make direct comparisons, a sample of average commodity prices normally purchased in the regular CPI was used as the survey template with the same commodity descriptions, weights, detailed specifications, brand names, etc. Eleven stores in Ta’u, Ofu, and Olosega islands were selected, and 28 commodities, including Food (21 items), Housing (2 items), Alcohol (2 items), Miscellaneous (2 items), and Transportation (1 item), were priced.
The price difference between Tutuila & Manu’a is 50.58%. In Manua, prices are higher due to limited or unavailable products caused by shipping and transportation costs. Fewer stores were monitored this quarter in the CPI, as stores were closed because store owners were not on the island at the time of data collection. Some stores have permanently closed their doors.