This section presents data on the local Consumer Price Index (CPI), average prices of selected commodities normally purchased by households, and annual household expenditure.

The American Samoa Consumer Price Index is designed to measure price changes of commodities and services normally purchased by the local community.  Like the U.S. CPI, it is based on the concept of representative “market basket”; a sample of goods and services the consumer purchased.  The local CPI began in 1974.  Weight distributions (representing relative value of commodity purchases to total expenditure) are aggregated to obtain CPI Group Indices and Sub-Group Indices.  Two major revisions were done on the CPI.  The first revision was done in 1982 and the second one in 1997.  These revisions were necessary to reflect consumer preferences and market changes.

The CPI for the last quarters of 2003 and 2004 registered at 114.4 and 124.5 index points respectively.  This is an increase of 10.1 index points between the two years.  The average inflation rate in 2003 and 2004 were 4.2 percent and 7.1 percent respectively.  This level of high inflation was last experienced around 1991 and 1992 after major hurricane disasters.  This correlation is again seen here as more and more federal aids and additional income received by the local community after hurricane Heta.  Over $30 million of cash assistance was received locally.

Household expenditures were last collected in 1995.  The Household Income & Expenditures Survey (HIES) of 1995 reported that the annual household spending in the territory amounted to $204 million.  Food and housing accounted for over 50 percent of household spending.  Special expenditures such as church donations, wedding, matai title investitures, funerals, gifts, and family fa’alavelave accounted for 21 percent of household spending.  It is worthy to note that household expenditures will be collected in the 2005 Household Income & Expenditures Survey.  This data will be published as soon as it is available.

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