Friday, March 19, 2021
Inflation Rate (IR) in Eastern Visayas increased to 2.8 percent in February 2021. This IR is 1.1 percentage points higher compared with the 1.7 percent IR in January 2021. This is also 0.9 percentage point higher than the recorded 1.9 percent IR in the same period last year.
In comparison with the national average IR, the regional IR is 1.9 percentage points lower than the 4.7 percent national IR in February 2021.
Eastern Visayas ranked fourth among the regions with low IR in February 2021. Central Visayas registered the lowest inflation rate during the month in review at 1.0 percent, followed by Zamboanga Peninsula and Davao Region at 2.0 percent and 2.7 percent, respectively.
On the other hand, Cagayan Valley posted the highest IR at 7.9 percent, followed by Bicol Region at 7.5 percent. CALABARZON ranked third with 5.8 percent IR in February 2021.
All provinces registered higher inflation rates in February 2021 compared with their figures in January 2021, except for Northern Samar, which recorded a 0.6 percentage point decrease from its inflation rate a month ago. Its IR eased down to 2.7 percent in February 2021 from 3.3 percent in January 2021. Meanwhile, Biliran recorded the highest growth of 2.7 percentage points from its zero IR in January 2021. The rest of the provinces registered increases ranging from 0.3 percentage point to 1.6 percentage points.
Samar posted the highest IR at 6.1 percent, while Leyte recorded the lowest IR during the month in review at 1.9 percent.
Majority of the commodity groups in the region exhibited higher IRs in February 2021 compared with their rates in January 2021. Food and non-alcoholic beverages
commodity group and housing, water, electricity, gas, and other fuels commodity group both registered the biggest increase in IR at 1.6 percentage points. IR for food and non-alcoholic beverages commodity group rose to 3.5 percent in February 2021 from 1.9 percent in January 2021. Contributing largely to this increase is the fish index which registered a 4.8 percentage points increase in IR, from 0.3 percent in January 2021 to 5.1 percent in February 2021. Vegetables index continued to register double digit IR in February 2021 at 19.6 percent, 3.7 percentage points higher than its 15.9 percent IR a month ago. Prices of meat picked up by 5.3 percent in February 2021 from 3.1 percent in January 2021. Corn, rice, and bread and cereals indices continued to register deflations but at slower rates of 2.7 percent, 2.1 percent, and 1.2 percent, respectively. Meanwhile, IR for fruits index managed to shed off by 0.8 percentage point from its double-digit figure of 12.0 percent in January 2021,
posting 11.2 percent IR in February 2021. Decreased IRs were also registered in the indices for food products not elsewhere classified (6.7%); oils and fats (5.5%); milk, cheese and eggs (2.8 percent); non-alcoholic beverages (2.4%); and sugar, jam, honey, chocolate and confectionery (0.7%).
Housing, water, electricity, gas and other fuels commodity group which registered 1.4 percent deflation in January 2021 recorded price increase in February 2021 at 0.2 percent. The 0.7 percent deflation in the index for electricity, gas, and other fuels was offset by the IRs in the indices for maintenance and repair of the dwelling (1.6%); actual rentals of housing (0.6%); and water supply and miscellaneous services relating to the dwelling (0.3%).
IR for transport commodity group increased by 0.6 percentage point, from 5.6 percent in January 2021 to 6.2 percent in February 2021. This can be attributed to the higher IR (1.7%) posted in the index for operations of personal transport equipment.
Compared with their January 2021 levels, the IRs for furnishings, household equipment and routine maintenance of the house commodity group (2.5%) and health (1.2%) commodity group both inched up by 0.1 percentage point in February 2021.
Recreation and culture commodity group continued to post deflation but at a slower rate, settling at 1.0 percent during the month in review.
On the other hand, alcoholic beverages and tobacco commodity group recorded 0.5 percentage point decrease in its IR, from 7.4 percent in January 2021 to 6.9 percent in February 2021. This can be traced to the lower IR in the indices for both alcoholic beverages (3.5%) and tobacco (8.9%).
IR for restaurant and miscellaneous goods and services commodity group eased by 0.2 percentage points, settling at 3.9 percent in February 2021.
The commodity groups of clothing and footwear and education retained their previous month’s IRs at 2.5 percent and 0.4 percent, respectively. Meanwhile, communication commodity group retained its previous month’s deflation at 1.5 percent.
PURCHASING POWER OF PESO
The Purchasing Power of Peso (PPP) of the region remained at Php 0.77 in February 2021. This PPP implies that the goods and services worth PhP 77.00 in 2012 is worth PhP 100.00 in February 2021.
Compared to their levels in January 2021, PPP in Biliran weakened by PhP 0.02, while PPP in Leyte, Southern Leyte, Eastern Samar, and Northern Samar declined by PhP 0.01 in February 2021. Samar, meanwhile, retained its previous month’s PPP.
Biliran and Leyte recorded the strongest PPP among provinces in February 2021 at PhP 0.79. Southern Leyte ranked second at PhP 0.78, followed by Eastern Samar at PhP 0.74 and Northern Samar at PhP 0.71. Samar posted the weakest PPP during the reference month at PhP 0.70.
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.
SGD. WILMA A. PERANTE