Inflation drops by -0.9% in April

THE Consumer Price Index (CPI), which measures inflation level in the country has dropped to -0.9 percent in April 2019 from the 1.3 percent rise driven mainly by declines in food and electricity prices in March 2019.

This is according to a monthly inflation statistical report for Honiara which was produced by the Solomon Islands national Statistics Office (SINSO), in the Ministry of Finance and Treasury (MoFT).

Releasing the report which shows the gradual drop in the price index, Government Statistician, Douglas Kimi said the plunge (drop) was from 105.3 in March to 104.4 in April.

The report highlighted that food and non-alcohol beverages are the main backer to the price fall of -2.3 per cent.

Mr. Kimi said the main contributor to the decrease in the Food group was bread and cereals by -0.4 per cent, fish and sea food -0.3 per cent, fruits -0.4 per cent, vegetables by -15.3 per cent and potato and tubers by -5.3 per cent at the Honiara Central market, outweighing an increase in milk, cheese and eggs by +0.2 per cent and canned sardines by +0.7 per cent.

The major changes in other expenditure categories include:

  • Alcoholic Beverages, Tobacco and Narcotics +0.4 per cent

The main contributor to the rise in this group was narcotics particularly betel nuts +2.4 per cent.

  • Housing, water, electricity, gas and other fuels -2.4 per cent

The change in this group was driven by a drop in electricity, gas and other fuels by -6.8 per cent offsetting an increase in liquid fuel by +5.5 per cent.

  • Furnishings, household equipment and routine household maintenance -0.5 per cent

The change in this group was attributed to a drop in furniture and furnishings by -2.5 per cent, outweighing a +0.5 per cent rise in tools and equipment for house and garden.

  • Transport +1.6 per cent

The main contributor to the change in transport group was operations of personal transport equipment by +4.9 per cent and transport services by +0.2 per cent.

The Government Statistician, however, said apart from the above, price movements elsewhere in the consumption basket were negligible.

“The overall annual headline inflation rate for the month of April 2019 calculated on a 3 months moving average basis was 0.5 per cent, an 8 percentage points drop from 1.3 per cent recorded in March 2019. The corresponding inflation rates for imported and other items were -2.8 per cent and 1.6 per cent, respectively.

“The main underlying rates of inflation based on a 3 months moving average for the month of April 2019 were observed between -1.0 per cent and 1.4 per cent while the headline inflation rate was at 0.5 per cent,” Mr. Kimi said.

Source: SINSO Media

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