7 Oct 2004

Samoa opposition blames high kiwi dollar for inflation rise

11:23 am on 7 October 2004

Samoa's opposition leader, Le Mamea Ropati, has blamed massive increases in wharf charges and the high New Zealand dollar for climbing inflation.

Mr Ropati says the high cost of insurance, freight and duty for goods have resulted in importers passing on that cost to customers.

He says in some cases, charges have increased by up to 400 per cent.

Mr Ropati says Samoa imports mostly from New Zealand, whose dollar is now nearly worth two Tala.

But he says the government is unlikely to introduce any solutions, such as pay rises, to counter the high cost of living, until the general elections in 2006.

Mr Ropati says according to the Central Bank, inflation reached 7.9 per cent in June, nine per cent in July and 10.4 per cent in August.