Eastern Visayas welcomes 2017 with a 2.8 percent inflation rate

Reference Number: 

SN-SR-201702-02

Release Date: 

Monday, February 27, 2017

Eastern Visayas registered 2.8 percent inflation rate (IR) in January 2017. This is 2.1 percentage points higher compared to its 0.7 percent IR recorded in the same period last year and 0.5 percentage point higher than its IR a month ago. This increase may be due to higher annual increments recorded in Housing, Water, Electricity, Gas and other Fuels and Alcoholic Beverages and Tobacco.

The region’s recorded IR is 0.1 percentage points higher than the 2.7 percent national average in January 2017.
Across regions, Cagayan Valley, Central Luzon and ARMM posted the highest inflation rate at 3.7 percent. It was closely followed by Davao Region which recorded an inflation rate of 3.6 percent. Meanwhile, Central Visayas registered the lowest inflation rate at 1.5 percent (Figure 1).

BY PROVINCE

All provinces in the region posted increases in inflation rates in January 2017 compared to their figures in December 2016, except for Samar, the only province that had sustained its December 2016 rate.

Southern Leyte exhibited the highest IR at 5.7 percent, followed by Northern Samar at 5.6 percent. Eastern Samar and Leyte both posted a 0.6 percentage points increase in their January 2017 IR which were pegged at 3.4 percent and 2.5 percent, respectively (Figure 2).

BY COMMODITY GROUP

Four major commodity groups in the region exhibited an upward trend on its inflation rates from December 2016 to January 2017 (Table 3). Housing, Water, Electricity, Gas and other Fuels recorded the highest uptick of 2.6 percentage points, primarily effected by mark-ups in the prices of LPG and house rentals.
Similarly, Food and Non-alcoholic Beverages and Clothing and Footwear indices moved up by 0.3 percentage points from their December 2016 rate of 2.3 percent and 2.5 percent, respectively. Increased inflation rate was likewise observed in Restaurants and Miscellaneous goods and services from 1.6 percent in December 2016 to 1.8 percent in January 2017.
On the other hand, annual price changes in the Transport services abruptly slowed down to 2.2 percent in January 2017 from 3.8 percent in December 2016. Inflation rates for Alcoholic beverages and Tobacco and Furnishings, Household Equipment and Routine Maintenance of the House also went down by 0.2 percentage points, settling at 3.9 percent and 1.5 percent, respectively.
The rest of the commodity groups retained their last month’s rate (Table 3).

PURCHASING POWER OF THE PESO

The 64-centavo purchasing power of peso (PPP) in the region was still sustained in January 2017. This implies that goods and services worth 100 pesos in January 2017 only cost 64 pesos in 2006.

Five provinces in the region similarly maintained their respective PPP at P0.68 for Biliran, P0.67 for Northern Samar, P0.64 for Leyte, P0.63 for Eastern Samar and P0.62 for Samar. Meanwhile, Southern Leyte posted a centavo decline in its PPP from 62 centavos in December 2016 to 61 centavos in January 2017 (Figure 4).

 

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