Government bean counters in Micronesia, a central Pacific island nation with close ties to the United States, have released more bad news about their nation’s economy.
According to reports from the Office of Statistics, Budget and Economic Management, inflation is still on the rise in the islands.
Second Quarter (April through June 2009) inflation across Micronesia was 9.6 percent – more than double the rate for the same quarter in 2008.
The jump in inflation was primarily driven by a 21.1 percent growth in the cost of food.
By state, the annual inflation rate for the 2nd quarter of 2009 was 5.8% in Kosrae, 11.2% in Pohnpei, 8.8% in Chuuk, and 8.9% in Yap.
The Office also announced details of a new analysis of trends in household income and expenditure patterns. They investigated the number of individuals and households that lack absolute minimum resources necessary for long-term physical well-being.
Households falling below the The Basic Needs Poverty Line (BNPL) had increased between 1998 and 2005.
In 2005, about 22.4% of households fell below the BNPL.
About 29.9% of the population was below the Basic Needs Poverty Line.
About 4.8% of population was vulnerable to falling below the BNPL.Learn more about the economic and development challenges faced by Micronesia -and the role of education in reducing gaps in opportunity and capacity- at habele.org.