18PR0837 - 01
Wednesday, January 31, 2018
18PR0837 - 01
31 January 2018
Inflation rate in Leyte at 4.7 percent in December 2017
Inflation rate in the province slightly decreased to 4.7 percent in December 2017 from 4.9 percent in the previous month. The provincial inflation rate of 4.7 percent signifies that the general price level of goods and services in Leyte were higher by 4.7 percent in December 2017 compared to the price levels during the same month in the previous year. Leyte’s inflation rate was slightly higher compared to region’s inflation rate at 4.0 percent during the reference month.
Most of the commodity groups contributed to the 4.7 percent overall inflation rate. The following major commodity groups significantly contributed to the provincial inflation rate: Education (11.3 percent); Food and non-alcoholic beverages (6.5 percent); Health (6.4 percent); Alcoholic beverages and tobacco (5.1 percent); Restaurant and miscellaneous goods and services (3.1 percent); Clothing and footwear (2.2 percent); and Recreation and culture (2.0 percent).
Five major commodity groups recorded a drop on its year-on-year rate of price change from November to December 2017. A decline of 2.9 percentage points was observed on the inflation rate of Transport due to the significant decrease on the inflation rate of transport services by 4.0 percentage points. Inflation rate of Housing, water, electricity, gas and other fuels declined by 0.8 percentage point. The rest of the commodity groups which includes Furnishings, household equipment and routine maintenance of the house, Health, and Restaurant and miscellaneous goods and services went down identically its inflation rates by 0.1 percentage point.
On the other hand, Alcoholic beverages and tobacco and Food and non-alcoholic beverages were the only commodity groups that posted an increment on its inflation rates by 0.4 percentage point and 0.2 percentage point, respectively.
Previous month’s inflation rate for Clothing and footwear, Communication, Recreation and Culture, and Education was maintained during the month-in-review.
Inflation rate is the general rise of prices over a period. It indicates how fast or how slow price changes over two-time periods. Contrary to common knowledge, low inflation does not necessarily connote that prices are falling, rather, it means that prices continue to increase at a slower rate. It is a derived indicator of the Consumer Price Index (CPI).
The CPI is a measure of change in the average retail prices of goods and services commonly purchased by a particular group of people in a particular area. The overall CPI in Leyte for December 2017 was recorded at 162.7. This means that the average retail prices of goods and services in Leyte is 62.7 percent higher than the average retail prices in 2006 (base year).
Purchasing Power of the Peso in Leyte weakened at 61 centavos in December 2017 from 62 centavos in November 2017, while the PPP for Region 8 was maintained at 62 centavos during the reference month. This purchasing power of the peso indicates that the same basket of goods and services worth 61 pesos in 2006 (base year) is now worth 100 pesos during the refence period.