The Consumer Price Index (CPI) of March, 2020 indicated an increase of (+0.5%). Port Vila slightly increased (+0.7%), however, Luganville decrease by (-0.5%) compared to the previous quarter. The expenditure groups that contributed to the increase in the CPI were: Food(+1.0%), Drinks & Tobacco(+0.6%), Clothing and Footwear and Education contribute (+0.4%) each, Housing Supplies and Health contributed at (+0.3%) each, and Communication (+0.2%). Housing Utilities and Transport correspond remain constant, However, the group that contributed to the decrease in price movement was Miscellaneous (-0.1%), Recreation (-0.6%).
CPI ANNUAL MOVEMENT
When compared to the March quarter of 2019, the Vanuatu index increased by (+3.0)Port Vila index increased by (+3.4%) while Luganville index slightly decreased by (-0.2%). At national level, the expenditure groups that contributed to the increase over the same quarter of last year were: Food(+6.7%), Communication(+0.7%), Household Supplies(+0.6%), Drinks and Tobacco, and Clothing and Footwear contribute at (0.5%) respectively, Health and Education stood at (+0.4%) each. The expenditure groups that contribute negatively to the CPI basket were: Miscellaneous(-2.5%), Housing Utilities(-0.4%), Transport(-0.2%) and Recreation(-0.1%). The increase in these expenditure groups were driven by the increase in price movements of Root crops, Fruits and Vegetables, Mobile phones, Furniture and Furnishes, Alcohol and Tobacco, Men's and Women's shoes and Clothing, Medical supplies, and Schools fees.
‘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. In March quarter of 2020, underlying inflation increased by (+0.4%) over the previous quarter and increased by (+0.6%) over the same quarter of 2019.