CPI QUARTERLY MOVEMENT - QUARTER 3 2015
CPI QUARTERLY MOVEMENT
The Consumer Price Index (CPI) of September, 2015 indicated a decrease of (- 3.5 %). Port Vila had dramatically decreased by (-4.1%) still showing the effect of cyclone Pam and so as Luganville index also indicated a slight decrease of (-1.1%) compared to the previous quarter. The following expenditure groups contributed to the decrease in the CPI were: Food (-9.7%), Miscellaneous (-1.4%)and Health (-0.7%). On the other hand, Clothing and Footwear indicated an increase of (+4.4%), Transportation (+2.5%), Recreation (+1.7%), Household Supplies (+1.3%), Housing Utilities (+0.6%) Drinks and Tobacco (+0.4%), the two remaining groups, communication and Education contributed (0.0%), showing no impact on this changes.
The main contributor to this movement was due to the price movements in Fruits and Vegetables from the Markets and Supermarkets in Port Vila. However, Women and Men’s clothing and footwear in Port Vila, International airline tickets from Port Vila to other destinations also showed an increase in price movement. In the previous quarter, Small hardware tools and Housing materials were Vat exempted but now had increased in price movement due to the inclusive of Vat after cyclone Pam.
‘Underlying inflation’ is a measure derived from the CPI excluding items which typically have unstable or volatile prices; because of things like seasonal variation or policy decisions. Underlying inflation decreased by (-1.1 %) in September quarter of 2015 compared to the previous quarter (June, 2015). In addition, it recorded an increase of (0.4%) over the same quarter of 2014.