15 Oct Consumer Price Index (CPI), 3rd Quarter October 2018
CPI is obtained by comparing through time, the cost of a fixed basket of commodities purchased by consumers. Since the basket contains commodities of unchanging or equivalent quantity and quality, the index reflects only pure price movements. Price movements of the goods and services represented in the CPI are weighted according to the relative importance of commodities in the total expenditures of consumers.
CPI Q3 2018
|1||Food and Drinks Including Sugar||356,39||502,14||462,36||448,36||498,07|
|2||Fruits and Vegetables||264,91||350,44||357,35||299,41||327,05|
|3||Clothes and Shoes for all||245,94||298,83||283,66||288,79||378,71|
|4||Water Fuel Power & Transportation||317,99||118,23||110,21||101,34||109,64|
Table 1 and Figure 1 show fluctuations in the general level of prices in Puntland.
There is an increase in the overall price level for the 3rd quarter of 2018 reaching an average of 224.81% with respect to the base year of 2005. (See Table 1 & Figure 1).
The monthly inflation rate for all items was -1.1 percent in June 2018, up from -5.8 percent in May 2018. The inflation rate for food items was -6.4 percent in May and it decreased to -9.6 percent in June while non-food items was -5.7 percent in May and it changed to 1.7 percent in June. It indicates that there is a big change for monthly inflation rate in non-food items than food and all items.
With regard to the foreign exchange regime in Puntland we have observed that for the first time in the history of Puntland, and indeed in Somalia in general, there is a declining trend in the market exchange rates and since August 2011 it is below the level (around SoSh20.99 in December 2012 per US$) of the official exchange rate of SoSh30, 000 per US$ (See Table 2 & Figure 2).
A recent report by an economic committee set for this purpose have come to a sensible proposal to collect import-export duties in solely US $’s.
Mobile Phones Money Transactions (SAHAL)
Sahal is a Golis Telecom service allowing customers to transfer money using a mobile phone. It has solved the crucial problem of finding smaller denominations of the USD since the SoSh currency notes are disappearing from Puntland circulation after the Government stopped printing them due to inflationary pressures.