Despite inflation easing down consumers still face high food bills

Pago Pago, AMERICAN SAMOA — Inflation in American Samoa “continues to gradually ease back down” and is “now at 5.6%”, according to the First Quarter of calendar year 2023 Consumer Price Index (CPI) report released last week by the Statistical Division of the Commerce Department.

“As such, freight and shipment of food commodities and other goods have become less expensive as well,” the CPI report said and noted that the previous 4th quarter of 2022 had also dropped in the CPI.

“After hitting the highest inflation in the 3rd quarter of last year — at 13.5%, the territory’s inflation continues in a downward trend,” according to “Point of Interest” cited in the First Quarter newsletter released along with the CPI report.

According to DOC, the largest expenditure in the CPI for the territory is usually the Food Group but, in this quarter, it has actually decreased by 0.7%. The Transportation group also continued to drop (down -3.7%) due to cheaper fuel prices.

“Because the top 3 groups have negative growth this quarter, there is only a slight increase (0.6%) for the overall inflation,” DOC reports.

The CPI report explained that the Food group —  which is technically lower than the previous quarter — remains the highest expenditure for the first quarter (at 139.8 points).

“The overall cost of food has gone up by 7.2%,” the report said, noting that the food items that “significantly increased” this quarter were, Chicken Wings (10.6%), Turkey Wings (11.9%) and Canned Spaghetti (28.8%).

Major items that have decreased are Case of Chicken (-19.2%), Frozen Fish (-5.1%), Steaks (-1.6%) and Beef Ribs (-4.2%).

And the report notes that the prices were noted just before there was a flour shortage.

The high cost of food over the past years — especially in the midst of the COVID-19 pandemic — remains the highest concern for consumers, including traditional leaders and lawmakers in the territory.

While there is still hope of a more decrease in food prices for 2023, store operators and wholesalers remind the community that American Samoa depends on imported food and other goods. Therefore the local price is effected with the shipping costs and import rates, “but not so much if fuel prices globally are down,” a representative for a local wholesaler told Samoa News over this past weekend.

The CPI report shows that Alcoholic Beverage Group increased this quarter by 2.0% with an annual increase now registers at 6.3%. Items in this expenditure group that increased in prices were beer (2.1%) and wine (3.7%).

For Housing, annually this group has gone up by 7.4%. Quarterly it has now decreased by 1.2%. A noticeable change comes from another drop of the cost per kilowatt of electricity, which was recorded at $0.44 in the month of February 2023 and this is a drop compared to the previous quarter.

OTHER GROUPS

•           Apparel Group continues to increase this quarter by 2.0%. It’s annual increase is observed at 6.3%. Items that have contributed to the increase are Women’s Footwear (9.8%), Men’s Footwear (1.0%), Girls’ Dresses (4.0%) and Diapers (3.2%).

•           Transportation Group continues to drop this quarter by 3.7%. Annually however, it has increased by 6.3%. Meaning prices were slightly lower in the same quarter of last year. The main commodity responsible for the decrease is gas. Data in the report shows that in the First Quarter of 2023, average gasoline price is $4.38 compared to $4.91 in the 4th quarter of 2022 while diesel average price is at $4.70 compared to $5.35 in the last quarter.

•           Medical Care prices such as Emergency Room charges continue to be unchanged. The slight quarterly increase (2.2%) stems once again from the prices of Non-prescription drugs (0.07%). “No significant changes to report,” said DOC.

•           Recreation Group has shown little increase this quarter, up by only 0.4%. Annually however it has increased by 4.0%. The singular item contributing to the quarterly increase was Cat Food (9.9%).

•           Education and Communication Group decreased this quarter by 0.2%. All items tracked in this group were constant except for Smartphones. DOC said this same item is tracked overtime. As newer versions are released, the prices of older models change — usually, they become cheaper.

•           Other Goods and Services Group have increased by 0.7% this quarter. Items that have contributed to the increase are Cigarettes (1.3%), Shampoo (1.8%), Soap (1.6%) and Hair Cuts (5.8%).

Samoa News notes that CPI report on the hike in cigarettes has confirmed complaints from smokers who claimed that local prices have gone above $10 a pack. Data in the report shows that a pack of Benson was $10.89 in the last quarter was $11.04 in the first quarter of 2023. For a pack of Kools cigarettes, is was $10.86 in the 4th quarter of 2022 but hiked to $11 a pack in the first quarter of 2023.