Inflation rate in Leyte records at 5.0 percent in January 2019
The inflation rate in Leyte slightly surged in January 2019. It stands at 5.0 percent reporting an increase of 0.4 percentage point compared to the 4.6 percent inflation rate in the previous month. Furthermore, this month’s rate is 2.1 percentage points higher compared with the 2.9 percent inflation rate in the same period of 2018 year. Leyte’s inflation rate was higher compared to region’s inflation rate at 4.0 percent during reference month.
Most of the commodity groups contributed to the 5.0 percent overall inflation rate. The following major commodity groups significantly contributed to the provincial inflation rate: Alcoholic beverages and tobacco (23.8 percent); Food and non-alcoholic beverages (7.0 percent); Housing, water, electricity, gas and other fuels (5.8 percent); Health (4.8 percent); Recreation and Culture (4.3 percent); Furnishings, household equipment and routine maintenance of the house (4.1 percent); Transport (3.2 percent); Clothing and Footwear (1.6 percent); and Restaurant and miscellaneous goods and services (1.4 percent).
From December 2018 to January 2019, five major commodity groups posted an increase on its month-on-month rate of price change. Furnishings, household equipment and routine maintenance of the house reported the biggest increase by 1.3 percentage points from 2.8 percent in December 2018 to 4.1 percent in January 2019. This was followed by the 1.2 percentage points increment on the inflation rate of Housing, water, electricity, gas and other fuels. Moreover, other major commodity groups that also posted an increase on its inflation rates were the following: Clothing and footwear (0.9 percentage point); Food and non-alcoholic beverages and Health (0.5 percentage point).
On the other hand, inflation rate of Alcoholic beverages and tobacco decreased by 6.0 percentage points from 29.8 percent in December 2018 to 23.8 percent in January 2019. Likewise, in Transport from 3.3 percent to 3.2 percent and Communication from 4.4 percent to 4.3 percent, posted a decreased of 0.1 percentage point.
Only two (2) major commodity groups reflected higher inflation rate in November 2018 as compared to the previous month, that is, Furnishing, household equipment and routine maintenance of the house, from 2.5 percent to 2.6 percent and Restaurant and miscellaneous goods and services, from 1.2 percent to 1.3 percent.
Previous month’s inflation rates of Restaurant and miscellaneous goods and services (1.4 percent), Communication (0.4 percent), and Education (-18.4 percent) were sustained during the monthin-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 January 2019 was recorded at 121.0. This means that the average retail prices of goods and services in Leyte is 21 percent higher than the average retail prices in 2012 (base year).
The Purchasing Power of Peso in Leyte maintained at 83 centavos in January 2019. Whereas, the PPP for Region 8 was decreased from 81 centavos in December 2018 to 80 centavos during reference month. This purchasing power of the peso indicates that the same basket of goods and services worth 83 pesos in 2012 (base year) is worth 100 pesos during the reference period.//
SHERYL ANN A. JAMISOLA
Chief Statistical Specialist