Inflation drops in February

A SIGNIFICANT 0.8 per cent inflation drop was noted for Honiara in February 2019, according to the Honiara Consumer Price Index (CPI) monthly report.

The statistical report which was produced and released by the Solomon Islands National Statistics Office (SINSO) recently says the descent was from 104.7 in January to 103.9 in the month of February.

Releasing the report, Government Statistician, Douglas Kimi said, despite the decline, food and non-alcoholic beverage continue to record a 1.9 per cent rise with the main contributor to the change was fruits responsible for +4.7 per cent while vegetables +16.6 per cent at the market.

Meat was outweighed by -2.3 per cent and selected potato and tuber-vegetable by -6.3 per cent.

Other major changes in other sub-index includes:

• Alcoholic Beverages, Tobacco and Narcotics -1.6 per cent.
The main contributor to the drop in this group was narcotics by 6.9 per cent, especially tobacco by -0.2 per cent and betel nut by -7.0 per cent.

• Clothing and Footwear, +0.3 per cent.
The main contributor to the rise in this group was garments by +0.4 per cent.

• Housing, water, electricity, gas and other fuels by -3.5 per cent
The change in the group was driven by a drop in electricity, gas and other fuels by -10.2 per cent and liquid fuel -2.1 per cent outpacing a rise in maintenance and repair of dwelling by +0.2 per cent.

• Furnishings, household equipment and routine household maintenance -0.3 per cent.
The change in this group was attributed to a fall in furniture and furnishings by -0.3 per cent outweighing a rise in tools and equipment for house and garden by +2.9 per cent.

• Transport -3.1 per cent.
The main contributor to the change in transport group was operation of personal transport equipment by -10.0 per cent and fuel and lubricants by -10.5 per cent.

However, Mr. Kimi said that apart from the above, price movements elsewhere in the consumption basket were small.

“The overall annual headline inflation rate for the month of February 2019 calculated on a 3 months moving average basis was 2.1 per cent, down by 1.6 percentage points from 3.7 per cent the previous month. The corresponding inflation rates for imported and other items were -0.9 per cent and 3.2 per cent, respectively.

“The main underlying rates of inflation based on a 3 months moving average for the month of February 2019 were observed between -0.7 per cent and 1.3 per cent while the headline inflation rate was at 2.1 per cent,” Mr. Kimi said.

CPI is a monthly indicator of the variation in prices for retail goods and other items.

The basket of goods chosen represents the spending behaviour of the population of Honiara and the resulting CPI is used to calculate inflation.

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