Analysis: Consumer Price Index

In this paper, we will look at the Ministry of Planning’s Quarterly Consumer Price Index. The CPI basket includes nine major economic categories, including Food and non-alcoholic Beverages, Clothing and footwear, Housing, water Electricity and Gas, Tobacco and Narcotics, Communication, Transport, Health and recreation and culture Food and non-alcoholic beverage is the most active sector, as it has increased considerably in the last three months. While housing, transportation, and communication have remained constant over time. On the other hand clothing and footwear and Tobacco has changed little. If we examine closely, we can see that generally imported products have changed a lot, whereas indigenous products have remained the same or have altered slightly. The CPI numbers for the last three months are shown below:

Figure 1 Change in the price indices for September, October and November 2021

Food & Non-Alcoholic Beverages experienced a monthly increase of 7.8 percent during the month of November 2021 compared with an increase of 6 per cent in October 2021. This increase. This increase is due to a combination of factors such as the International supply chain problem and there is also a possibility of political tension existing in Somalia.  

Clothing and Footwear experienced a monthly increase of September and October. During October clothes increased by 5.8 per cent compared to 3.8 in September. Mainly the price increase is from shortage of containers and challenges faced by the international supply chain.

According to Tobacco & Narcotics experienced a monthly increase of 1.38 percent during the month of November 2021 compared with an increase of 0.6 percent in October 2021. This group experienced the highest increase in prices across all groups.

Housing, Water, Electricity & Gas experienced a monthly fall of 3.8 percent during the month of August 2021 compared with an increase of zero percent in July 2021.

Hussein Abdi Mohamud, Operations Manager, SBR

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