Eastern Visayas recorded a 0.7 percent deflation in October 2019. This figure is 0.6 percentage point lower compared with the 0.1 percent deflation a month ago, and
7.6 percentage points lower compared with the 6.9 percent inflation rate (IR) recorded in the same period last year.
The regional deflation is 1.5 percentage points lower than the 0.8 percent national average inflation rate in October 2019.
Seven (7) out of 17 regions in the country exhibited deflations in prices of commodities. Zamboanga Peninsula posted the biggest drop in prices with a deflation of 1.3 percent, followed by Eastern Visayas and Davao Region both with 0.7 percent deflation.
On the other hand, Central Luzon posted the highest IR at 2.3 percent, followed by CALABARZON at 1.4 percent. NCR ranked third highest at 1.3 percent.
All provinces, except Eastern Samar, posted deflations in October 2019. The biggest drop in prices of commodities was recorded in Southern Leyte at 2.6 percent deflation, followed by Northern Samar and Biliran at 1.4 percent deflation. Samar and Leyte registered 1.1 percent and 0.2 percent deflations, respectively.
Eastern Samar, on the other hand, exhibited an IR of 0.7 percent in October 2019, slightly higher from its 0.5 percent IR in September 2019.
Biliran recorded the biggest decline in year-on-year price changes (1.9 percentage points), from 0.5 percent IR in September 2019 to 1.4 percent deflation in October 2019.
Majority of the commodity groups in the region exhibited slight increases in IR in October 2019 compared with their rates in September 2019. These were however offset by the decreases recorded in housing, water, electricity, gas and other fuels; transport; food and non-alcoholic beverages; and recreation and culture commodity groups.
Housing, water, electricity, gas and other fuels commodity group registered the biggest drop of 2.0 percentage points, from 0.9 percent deflation in September 2019 to 2.9 percent deflation in October 2019. This can be attributed to the price drop-off in the index for electricity, gas and other fuels.
Transport commodity group posted zero inflation rate during the reference month. The 1.7 percent inflation recorded in the index for transport services was offset by the 4.3 percent deflation registered in the index for operation of personal transport equipment.
The heavily weighted food and non-alcoholic beverages commodity group further slowed down to 2.6 percent deflation during the reference month from 2.2 percent deflation in September 2019, a drop of 0.4 percentage point. Lower IRs were noted in majority of the food items, with food products not elsewhere classified registering the highest decrease of 1.3 percentage points pushing its IR to 5.0 percent in October 2019 from 6.3 percent deflation a month ago. Rice, bread and cereals, and fish indices continued to register deflations at 9.7 percent, 7.5 percent and 0.2 percent, respectively.
Similarly, recreation and culture commodity group eased down by 0.4 percentage point registering an IR of 1.8 percent during the month in review.
On the other hand, the commodity groups of alcoholic beverages and tobacco, and restaurant and miscellaneous goods and services picked up by 0.3 percentage point, posting IRs at 4.7 percent and 4.2 percent, respectively.
IR for furnishings, household equipment and routine maintenance of the house commodity group was recorded at 6.5 percent during the reference month, an increase of 0.2 percentage point from its 6.3 percent IR in September 2019.
Health and clothing and footwear commodity groups inched up by 0.1 percentage point, pushing their IRs in October 2019 to 3.3 percent and 3.1 percent, respectively.
Meanwhile, education and communication commodity groups retained their previous month’s inflation rates.
PURCHASING POWER OF PESO
The Purchasing Power of Peso (PPP) of the region remained at P0.80 in October 2019. This PPP implies that P100.00 in 2012 (base year) is worth P80.00 only in October 2019.
Biliran posted a P0.02 increase in PPP compared with its figure in September 2019, while Northern Samar and Samar’s PPP weakened by P0.01. The rest of the provinces sustained their PPP last month.
Biliran recorded the strongest PPP at P0.83. Leyte and Southern Leyte ranked second at P0.82, followed by Eastern Samar at P0.78. Northern Samar and Samar posted the weakest PPP at P0.76.