Inflation Rate (IR) in Eastern Visayas declined to 1.8 percent in September 2020. This figure is 0.5 percentage point lower than the 2.3 percent IR recorded in August 2020. The September 2020 IR of the region, however, is higher by 1.9 percentage points compared with the 0.1 percent deflation in the same period last year.
The regional IR is 0.5 percentage point lower than the 2.3 percent national average in September 2020.
Eastern Visayas ranked fourth among regions with low IR in September 2020. Davao Region registered the lowest inflation during the month at 0.8 percent, followed by Central Visayas and CAR at 1.1 percent and 1.6 percent, respectively.
Meanwhile, Bicol posted the highest IR at 4.5 percent, followed by Caraga and MIMAROPA at 3.2 percent. SOCCSKSARGEN and Cagayan Valley both ranked third highest at 2.9 percent.
Among provinces, Samar posted the highest IR in September 2020 at 5.3 percent. This figure is 1.0 percentage point higher compared with its 4.3 percent IR in August 2020. Southern Leyte and Eastern Samar also recorded increases by 0.1 percentage point, resulting to an IR of 3.1 percent and 1.6 percent, respectively.
Meanwhile, Northern Samar registered lower inflation rate from 5.1 percent in August 2020 to 4.1 percent.in September 2020. Biliran recorded 2.1 percentage points drop from 0.8 percent IR in August 2020 to 1.3 percent deflation during the month in review. It also recorded the lowest year-on-year price change among provinces.
Leyte retained its previous month’s IR of 1.3 percent.
Alcoholic beverages and tobacco commodity group continued to post the highest IR at 7.6 percent in September 2020, followed by restaurant, miscellaneous goods and services at 4.7 percent.
Of the 11 commodity groups in the region, four (4) commodity groups exhibited lower IRs in September 2020 compared with their figures in 2020. The commodity group for housing, water, electricity, gas and other fuels declined by 2.2 percentage points from 1.5 percent IR in August 2020 to 0.7 percent deflation in September 2020. This can be traced to the continued decline in the index for electricity, gas and other fuels from 0.7 deflation in August 2020 to 6.8 percent deflation in September 2020.
The IR for furnishing, household equipment and routine maintenance declined by 0.5 percentage point from 3.2 percent in August 2020 to 2.7 percent in September 2020.
Compared with their figures in August 2020, the IRs for both clothing and footwear commodity group and health commodity group decreased by 0.2 percentage point settling down to 3.1 percent and 1.0 percent, respectively, in September 2020.
On the other hand, four (4) other commodity groups exhibited higher IRs in September 2020 compared with their rates in August 2020. Transport commodity group posted the highest increase of 2.2. percentage points, from 0.5 percent in August 2020 to 2.7 percent in September 2020. This can be attributed to the 4.7 percentage points increase in the index for transport services, from 1.4 percent in August 2020 to 6.1 percent in September 2020.
The IR for education commodity group went up to 0.4 percent in September 2020 from zero IR in the previous month. This increase is due to the 1.4 percent increase in the index for pre-primary and primary education.
The index for recreation and culture commodity group inched up by 0.1 percentage point, from 2.0 percent deflation in August 2020 to 1.9 percent deflation in September 2020.
Alcoholic beverages and tobacco; and food and non-alcoholic beverages commodity groups retained their previous month’s IRs at 7.6 percent and 2.2 percent respectively. Meanwhile, communication commodity group retained its previous month’s deflation at 1.7 percent.
PURCHASING POWER OF PESO
The Purchasing Power of Peso (PPP) of the region remained at P0.79 in September 2020. This PPP implies that the goods and services worth P79.00 in 2012 is worth P100.00 in September 2020.
PPP in Northern Samar strengthened by P0.01 compared with its figure in August 2020. Biliran weakened by P0.01, while the rest of the provinces retained their previous month’s PPP.
Biliran recorded the strongest PPP at P0.82. Leyte ranked second at P0.81, followed by Southern Leyte at P0. 80, Eastern Samar at P0.77 and Northern Samar at P0.74. Samar posted the weakest
PPP at P0.73.
The current CPI series is 2012-based. The five steps involved in the rebasing/computing of the CPI are as follows: (1) identification of the base year (2) determination of the market basket (3) determination of household consumption patterns (4) monitoring of prices of items in the basket and (5) computation of the CPI using chain method.
The 2012 FIES expenditure data were used to directly estimate the 2012 CPI weights at the national and regional levels. However, the 2012 FIES estimates for the expenditure data at the provincial level were not directly utilized in estimating the CPI expenditure weights as the data at the provincial/city level may not be reliable with the use of the households' master sample (MS) that was utilized in selecting the 2012 FIES sample households. The MS was drawn using regions as domains in generating estimates in all the household surveys of the PSA starting July 2003. The provincial/city expenditure data were derived using the model-based method in small area estimation procedures using the regional expenditure data as the control total for all the expenditure data within the specific region. Using these estimates, the weight for each item of expenditure is computed as a proportion of that item of expenditure to the total national expenditure. A raking procedure was done to adjust the weights of the provinces so that the provincial weights when added up will equal to the regional weights.
BASE YEAR - is a period at which the index number is set to 100. It is the reference point of the index number series.
CONSUMER PRICE INDEX (CPI) - is an indicator of the change in the average prices of a fixed basket of goods and services commonly purchased by households relative to a base year.
DEFLATION - is the decline in prices for goods and services that happens when the inflation rate dips below 0%.
INFLATION RATE (IR) - is the annual rate of change or the year-on-year changes in CPI. It indicates how fast or how slow price changes over two time periods (year-on-year). Contrary to common knowledge, low inflation does not necessarily connote that prices of commodities are falling. It means that prices continue to increase but at a slower rate.
MARKET BASKET - refers to a sample of goods and services, which is meant to represent the totality of all the goods and services purchased by households relative to a base year.
MONITORING OF PRICES - involves establishing baseline information for the prices of the items in the base year and monitoring the prices of the items on a regular basis. Data collection for the CPI is done by the provincial office twice a month, except for petroleum products which are monitored on a weekly basis, every Friday. First collection phase is done during the first five days of the month while the second phase is on the 15th to 17th day of the month.
PURCHASING POWER OF PESO (PPP) - gives an indication of the real value of peso (how much it is worth) in a given period relative to its value in the base period. It is computed as the reciprocal of CPI multiplied by 100.
RETAIL PRICE - refers to the actual price at which retailers sell a commodity on spot or earliest delivery, usually in small quantities for consumption and not for resale. It is confined to transactions on cash basis in the free market and excludes black-market prices and prices of commodities that are on sale as in summer sales, anniversary sales, Christmas sales, etc.
WEIGHTS - is a value attached to a commodity or group of commodities to indicate the relative importance of that commodity or group of commodities in the market basket. The weights for the 2012-based CPI were derived from the expenditure data of the 2018 Family Income and Expenditure Survey.