15 Apr Consumer Price Index (CPI), 1st Quarter April 2019
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
|Q1 2019||Food and Drinks Including Sugar||Fruits and Vegetables||Clothes and Shoes for all||Water Fuel Power & Transportation||Furniture||Medicine|
|wdt_ID||Q1 2019||Food and Drinks Including Sugar||Fruits and Vegetables||Clothes and Shoes for all||Water Fuel Power & Transportation||Furniture||Medicine|
Table 1 and Figure 1 show fluctuations in the general level of prices in Puntland.
There is a decrease in the overall price level of the 1st quarter of 2019 with respect to the last quarter
reaching an average of 193.7% to the base-year of 2005 (See Table 1 & Figure 1).
In this period (2005 – 2018) the overall average inflation rate stays at 120.98%.
While the average annual inflation rate stands at 9.31%
Puntland CPI index for all items stay the same in between Nov 2018 to Dec 2018. The CPI index was
103.9 percent in both Nov and Dec 2018. However, the CPI for food items only was 104.3 percent in Nov
and it decreased to 103.3 percent in Dec. While the CPI for non-food items was 103.8 percent in Nov and
it raised up to 104.0 percent in Dec.
The monthly inflation rate for all items was 0.0 percent in Dec 2018, down from 2.4 percent in Nov 2018.
The inflation rate for food items was 2.0 percent in Nov and it changed to -1.0 percent in Dec while nonfood
items was 2.6 percent in Nov and it decreased to 0.2 percent in Dec. It indicates that there is a slightly change for monthly inflation rate in non-food and all items than food 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.