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Consumer Price Index

The Consumer Price Index (CPI) is a measure which provides information on the cost of living for the FSM, including each of the four states which make up the FSM.  It achieves this by producing an index, which indicates the cost of living at a particular time point, which in turn can be compared to other time points to determine if the cost of living is increasing or decreasing.

The index is produced by collecting prices for a “basket” of goods each quarter, which reflects the spending patterns of a typical household in FSM (nb: the “basket” changes slightly between the states, due to the different spending patterns of each of the four states).  These prices are then monitored over time to determine if the cost for each item has increased or decreased.  This ‘basket’ covers a wide range of goods and services, arranged in the following seven groups: Food; Alcohol, tobacco, sakau & betelnut; Clothing & footwear; Housing; Fuel, light & water; Services; and Miscellaneous.  For more information on what items make up each group.

CPI Definitions and groups compositions can be downloaded here.

 Annual Inflation Rate: FSM – CY2008 to CY2017

The FSM annual inflation rate for the fourth quarter of 2017 was -0.02 percent, which was the lowest rate as compared to the same quarter in the previous years. The major contributing factors to the -0.02 percent annual inflation were the decrease in the prices of rice, gasoline and kerosene. On a state basis, the annual inflation rate for fourth quarter 2017 was, -1.6 in Pohnpei, 0.4 in Kosrae, 1.3 in Chuuk and 1.3 percent in Yap.
Click here for 2017 Consumer Price Index Detailed Table

Annual Inflation Rate:  FSM and State – CY2017

Contributing Commodities: CY2017