Leyte’s Inflation rate at 4.3 percent in February 2019
The inflation rate in Leyte slightly eased in February 2019. It stands at 4.3 percent reporting a decrease of 0.7 percentage point compared with the 5.0 percent inflation rate in the previous month. Furthermore, this month’s rate is slightly higher by 0.1 percentage point compared with the 4.2 percent inflation rate in the same period of 2018 year. Leyte’s inflation rate was higher compared to region’s inflation rate at 3.1 percent during reference month.
All of the commodity groups contributed to the 4.3 percent overall inflation rate except Education with -18.4 percent inflation due to significant impact of the Universal Access to Quality Tertiary Education Act. The following major commodity groups contributed to the provincial inflation rate: Alcoholic beverages and tobacco (11.1 percent); Housing, water, electricity, gas and other fuels (7.1 percent); Food and non-alcoholic beverages (5.7 percent); Furnishings, household equipment and routine maintenance of the house (4.9 percent); Health (4.7 percent); Recreation and Culture (4.2 percent); Clothing and Footwear (2.7 percent); Restaurant and miscellaneous goods and services (1.7 percent); Transport (1.4 percent); and Communication (0.4 percent).
From January 2019 to February 2019, four major commodity groups posted increases on its month-on-month rate of price change. Housing, water, electricity, gas and other fuels reported the biggest increase with 1.3 percentage points from 5.8 percent in January 2019 to 5.7 percent in February 2019. This was followed by the 1.1 percentage points increment on the inflation rate of Clothing and footwear. Moreover, other major commodity groups that also posted increases on its inflation rates were Furnishing, household equipment and routine maintenance of the house (0.8 percentage point); and Restaurant and Miscellaneous goods and services (0.3 percentage point).
On the other hand, inflation rate of Alcoholic beverages and tobacco significantly decreased by 12.7 percentage points, from 23.8 percent in January 2019 to 11.1 percent in February 2019. Other major commodities also posted decreases such as in Transport, from 3.2 percent to 1.8 percent; Food and nonalcoholic beverages, from 7.0 percent to 5.7 percent; Health from 4.8 percent to 4.7 percent; and Recreation and culture, from 4.3 percent to 4.2 percent.
Previous month’s inflation rates for Communication (0.4 percent), and Education (-18.4 percent) were sustained 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 February 2019 was recorded at 121.6. This means that the average retail prices of goods and services in Leyte is 21.6 percent higher than the average retail prices in 2012 (base year).
The Purchasing Power of Peso (PPP) in Leyte decreased in February 2019 at 82 centavos. Whereas, the PPP for Region 8 was maintained at 80 centavos during reference month. This purchasing power of the peso indicates that the same basket of goods and services worth 82 pesos in 2012 (base year) is worth 100 pesos during the reference period. //
SHERYL ANN A. JAMISOLA
Chief Statistical Specialist