THE MOVEMENT OF THE INDEXES

HEADLINE CPI

The Headline CPI increased showing 0.7 percent from December quarter 2018 to March quarter 2019.

The Headline CPI also shows annual change of 4.5 percent from March quarter 2018 to March quarter 2019.

The quarterly percentage change in the CPI Towns are:

CPI TOWNS INDEX NUMBERS PERCENTAGE CHANGE

Dec Qtr 2018 Mar Qtr 2019

Mar Qtr 2018 Mar Qtr 2019

% CHANGE

Port Moresby

Lae

Goroka-Mt Hagen-Madang

Alotau-Kimbe-Rabaul

Weighted average of eight CPI towns

0.6

0.9

0.5

0.7

0.7

4.7

6.3

3.2

3.3

4.5

 

CPI March Quarter 2019

Graph 1 shows the quarterly percentage changes in All CPI towns from December quarter 2018 to March quarter 2019.

The percentage changes in the CPI by major expenditure groups for March quarter 2019 are:

ALL GROUPS WEIGHTED AVERAGE PERCENTAGE CHANGES

Dec Qtr 2018 Mar Qtr 2019

Mar Qtr 2018

Mar Qtr 2019

% CHANGE

All groups

Food and Non - Alcoholic Beverages

Alcoholic Beverages, Tobacco and Betelnut

Clothing and Footwear

Housing

Household Equipment

Transport

Communication

Health

Recreation

Education

Restaurants and Hotels

Miscellaneous

 

All groupings excluding Housing

0.7

0.8

-0.2

-0.2

0.7

-0.2

1.6

0.0

-0.9

0.7

2.2

3.5

-0.5

 

0.7

4.5

3.4

3.1

5.1

6.2

1.6

7.9

3.7

5.6

4.1

2.2

8.4

3.8

 

4.2

 

Below are the main Group contributors to change for March Quarter 2019

1. Restaurants and Hotels Group (+3.5%)

The main contributor to the rise in Restaurants and Hotels group index this year was prices of Takeaway Foods (+4.0%).

2. Education Group (+2.2%) 

The main contributor to the rise in Education group index this quarter is due to the increase in Education fees (3.2%).

3. Transport Group (+1.6%)

The main contributor to the rise in Transport Group index this quarter was the Fares (+3.4%)

The Transport Group Index was partially offset by decrease in fuel prices (-9.9%)

 CPI March Quarter 2019 Percentage change

Graph 2: Shows Quarterly percentage change in CPI groups from December quarter 2018 to March quarter 2019.

THE MOVEMENT OF THE INDEXES
HEADLINE CPI

The headline CPI shows an increase of 1.3 percent in the December quarter 2017, compared with an increase of 1.0 percent in the Septemberquarter 2017.
The headline CPI also shows an annual change of 4.7 percent increase from December quarter 2016 to December quarter 2017.

The quarterly percentage changes in the All CPI Towns are:

CPI Towns Quarterly Change
Port Moresby 1.4%
Lae 1.2%
Goroka-Mt Hagen-Madang 1.5%
Alotau-Kimbe-Rabaul 1.3%

The percentage changes in the CPI by major expenditure groups from previous quarter are:

Major Expenditure Groups Percentage Change
Food and non-alcoholic beverages -1.7
Alcoholic beverages, tobacco and betelnut 4.7
Clothing and foot wear 2.2
Housing 1.0
Household equipment 4.3
Transport 2.7
Communication 0.0
Health 7.7
Recreation 5.0
Education 0.0
Restaurants and hotels -0.5
Miscellaneous 0.1

Graph 1. Quarterly percentage change in the All CPI Towns.

CPI December Quarterly percentage Change

The graph shows the quarterly percentage change in all CPI towns from December quarter 2016 to Decemebr quarter 2017. Goroka-Mt Hagen- Madang displayed the highest index of 1.5 percent while Lae had the lowest index of 1.2 percent in the December quarter 2017

UNDERLYING CPI

The underlying CPI shows an increase of 1.5 percent in the December quarter 2017, compared with an increase of 1.2 percent in the September quarter 2017.
The underlying CPI also shows an annual change of 3.9 percent increase from December quarter 2016 to December quarter 2017.
The quarterly underlying CPI excluding the three based measures stated below are:

Qrtr Underlying CPI Percentage

CPI ex- seasonal - Excludes the CPI item betel nut and mustard, and the subgroup fruit and vegetables.

1.5%

CPI ex- seasonal and excise - Excludes the seasonal items in subgroups affected by changes, excise duties - alcoholic beverages and tobacco.

1.5%

CPI ex- seasonal, excise and price control - Excludes the seasonal and excise affected items and subgroups noted in the selected price-regulatedcategory - rents, electricity, water, fares, fuels and lubricant, other services, postal services, telephone services, other communication services, medical services and education fees subgroups.

1.8%

Graph 2. Quarterly percentage change in the Headline and Underlying CPI.

Annual percentage changes in the headline CPI, underlying CPI and underlying CPI excludes the three based measures.

 Headline and Underlying CPI

The graph shows the comparison of the annual percentage changes in the headline CPI, underlying CPI and underlying CPI excluding; (i) seasonal, (ii) seasonal and excise (iii) seasonal, excise and price control from December 2012 to December 2017.

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