Pago Pago, AMERICAN SAMOA — The “high cost of wine and beer” contributed to increase in the Alcoholic Beverage Group during the second quarter of 2019, according to the Consumer Price Index report for the second quarter released last month by the Commerce Department.

According to the report, the Alcoholic Beverage group recorded the largest quarterly increase with 2.1%.

As previously reported by Samoa News, it was April of last year that a new law went into effect, in which the excise tax on imported beer: 35-cents per 12 fluid ounces, or fraction thereof, of beer and malt container offered for sale by the importer. It basically means 35-cents per can.

Previously, the excise tax on imported beer and malt extract was 190% of the value.

According to the 2nd quarter CPI report, the Transportation Group recorded a 1.8% hike due to the high cost of unleaded gasoline, diesel, and airfares for the Pago Pago- Manu’a route.

(Samoa News notes that the maximum allowable price (MAP), or wholesale price, for all petroleum products sold in American Samoa dropped for the current period — July 15th to Aug. 14th. See Samoa News July 24th edition for details.)

Another increase in the second quarter was the Food Group — a hike of 0.3% due to high prices of meat products — such as beef ribs, salted beef, and fresh fish. Local produce such as bananas increased in price as well. Food items such as spaghetti, sardines, meat pie, rice, sugar, cooking oil, fruits and vegetables also contributed to the hike.

The Housing Group also recorded a 0.3% hike because of slightly higher costs of major home appliances - e.g. air conditioner, rice cooker, microwave oven - and living room furniture, construction tools, and materials increased in prices as well. 

The Apparel Group, Medical Care Group, and the Education and Communications Group each recorded a slight increase of 0.1% for this quarter.

A decrease of 0.1% came in the Recreation Group, as the cost of fitness memberships and “bingo papers” dropped. The largest decline — of 0.9% — was in the Other Goods and Services Group, due to the drop in cost of tobacco, funeral services, and hygiene products such as soap.