Inflation rate for territory up for the second consecutive month

By Samoa News staff reporters@samoanews.com Pago Pago, AMERICAN SAMOA — The inflation rate in American Samoa has risen for the second consecutive month, increasing by 1.0%. This uptick follows a decline in inflation in the last quarter of 2025, indicating ongoing economic fluctuations, as indicated in the latest Consumer Price Index Press release for the 1st Quarter of 2026. The Transportation Group continues to dominate as the highest expenditure category, both quarterly and annually. After a significant drop in the previous quarter, this group has rebounded impressively, posting a 5.2% increase. A notable contributor to this recovery is the sharp rise in airfares, which have escalated by 13.0%. This surge can be attributed to a combination of higher travel fees and air travel taxes, reflecting broader trends in the aviation industry. In stark contrast, gas and diesel expenses have declined this quarter. Gas prices decreased slightly by 0.2%, while diesel prices fell more significantly by 2.5%. The average prices for gas and diesel over the past quarters highlight this trend: •Q1 2025**: $4.19 (gas), $4.48 (diesel) •Q2 2025**: $4.01 (gas), $4.19 (diesel) •Q3 2025**: $4.12 (gas), $4.39 (diesel) •Q4 2025**: $4.06 (gas), $4.38 (diesel) •Q1 2026**: $4.01 (gas), $4.27 (diesel) Additionally, the Food Group has experienced a 1.2% increase in the Consumer Price Index (CPI) this quarter. This rise is largely driven by significant price hikes in two specific food products: meat pies and pancake mix. The average cost of a meat pie, which was $2.78 last year and during the last quarter, has surged to $3.50. Similarly, the price of pancake mix has escalated from $4.19 to $4.76 this quarter. Research indicates that nearly 53 percent of the food items tracked in the CPI have seen price increases, including mackerel (6.4%), turkey wings (4.9%), cereal (3.9%), tea bags (2.8%), and salt beef (2.0%). This broad-based increase in food prices reflects rising demand and potential supply chain challenges. The Entertainment Group has also shown positive development, experiencing a 3.5% increase this quarter. Within this group, bingo paper prices have risen by 1.8%. Conversely, cat food prices have decreased by 2.6%, indicating varying trends within consumer spending on entertainment and pet care. Notably, the remaining 20 items monitored in this category have not changed in price, suggesting relative stability for those products. In contrast, five groups within the CPI have demonstrated declines this quarter. The most significant decrease occurred in the Education and Communication Group, which fell by 4.3%. Remarkably, despite this substantial drop, no price changes were recorded for any items in this category during the quarter, indicating potential deflationary pressures or stabilization in educational costs. The Apparel Group has reported a modest 2.3% decrease. Within this group, only four items experienced price changes: baby wipes decreased by 1.0%, and t-shirts decreased by 2.3%. In contrast, men's and boys' footwear recorded a slight 0.6% increase, while women’s and girls’ footwear rose by 1.0%. These mixed price movements highlight the complexities of consumer preferences in the apparel market. Moreover, the Medical Care Group has experienced a 1.9% decline. Key items, such as non-prescription drugs, saw a slight 0.4% decrease, while band-aids fell by 1.0%. These reductions may be influenced by increased competition among healthcare providers or cost-saving measures implemented by consumers. The Goods and Services Group recorded a minor drop of 0.8% this quarter. During this period, four items experienced price fluctuations: hair conditioner prices decreased by 0.7%, and hair shampoo prices fell by 2.8%. Conversely, deodorant prices increased by 0.2%, while toothpaste prices rose by 0.9%. This volatility reflects changing consumer habits and potentially shifting costs in the personal care market. Lastly, the Alcohol Group is the only category that has not seen any price changes; the prices for beer, wine, and distilled spirits have remained consistently stable. This stability may indicate a steady consumption pattern among consumers, possibly tied to cultural preferences and economic conditions. Overall, these detailed findings provide a comprehensive snapshot of the current economic landscape in American Samoa, highlighting the ongoing complexities and shifts in consumer behavior across various categories. Section: Local News Tags: INFLATION RATE
2026-05-08 16:31:25