Inflation Rises to 0.1% in December

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HONIARA’S inflation rate was up 0.1 percent in December 2018, the National Statistics Office says in its Honiara Consumer Price Index (CPI) report released recently.

Government Statistician, Douglas Kimi while releasing the statistical report said the 0.1 points increase was from 104.1 recorded in November to 104.2 for the month, December.

However, Mr. Kimi said despite the slim rise, Food and Non-Alcoholic Beverages remained stable overall, with minimal price rises outweighed by similar declines.

“As observed at the Honiara Central Market, a rise in fruit and vegetables by +0.8 percent was countered by a decline in potato and tuber vegetables thru -0.7 percent.”

Other major changes in other sub-index include:

  • Alcoholic Beverages, Tobacco and Narcotics by -0.3 percent

The main contributor to the slight decline in this group was narcotics by -1.6 percent, in particular, betel nut thru -1.9 percent.

  • Housing, water, electricity, gas and other fuels by +0.4 percent

The main contributor to the marginal rise in this group was electricity, gas and other fuels by +1.3 percent especially electricity charges +2.2 percent.

  • Transport +0.1 percent

The main contributor to the minor rise in the transport group was passenger sea transport by +1.0 percent.

Mr. Kimi added that apart from the above, price movements elsewhere in the consumption basket were negligible.

“The overall annual headline inflation rate for the month of December 2018 calculated on a 3 months moving average basis was 4.2 per cent, down by 0.3 percentage points from 4.5 percent the previous month. The corresponding inflation rates for imported and other items were 1.7 percent and 5.4 percent, respectively.

“On an annual observation, at the close of the 2018 calendar year, CPI increased by 3.5 per cent driven by education by +22.7 per cent, alcoholic beverages, tobacco and narcotics by +12.2 per cent, and restaurants and hotels by +4.9 per cent.

“The main underlying rates of inflation based on a 3 months moving average for the month of December 2018 were observed between -0.5 per cent and 0.9 per cent while the headline inflation rate was at 4.2 per cent,” Mr. Kimi stated.