17PR0837 - 24
Inflation rate in Leyte marks at 3.9 percent at July
Inflation rate in Leyte slightly increased at 3.4 percent in May 2017, representing a minimal increase of 0.1 percentage point compared to the 3.3 percent inflation rate in the previous month. Average provincial inflation rate in Leyte is higher than the regional average since May 2016 except in November until the reference period. The region’s inflation rate decreased from 4.1 percent in April to 3.9 percent during the reference month.
Most of the commodity groups contributed to the 3.4 percent overall inflation rate which include Housing, water, electricity, gas and other fuels (7.9 percent); Transport (4.8 percent); Alcoholic beverages and tobacco (4.0 percent); Education (3.8 percent); Food and non-alcoholic beverages (2.5 percent); and Health (1.3 percent). The rest of the commodity groups registered an inflation rate ranging from 0.2 to 1.0 percent.
Five (5) commodity groups recorded increase in inflation in May 2017. With transport posting the biggest increase by 1.4 percentage points, from 3.4 percent to 4.8 percent.
On the other hand, Alcoholic beverages and Tobacco and Furnishing, household equipment and routine maintenance of the house recorded a drop-in inflation rate by 0.5 percentage point and 0.3 percentage point, respectively.
Previous month’s inflation rate for Food and Non-alcoholic Beverages, Communication, Recreation and Culture, Education and Restaurant and miscellaneous goods and services were maintained during the month-in-review.
Inflation rate is the general rise of prices over a period. It indicates how fast or how slow 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 May 2017 was recorded at 158.4. This means that the average retails prices of goods and services in Leyte is 58.4 percent higher than the average retail prices in 2006 (base year).
Purchasing Power of the Peso in Leyte for May 2017 was maintained during the reference month at 63 centavos, the same level for Region 8. This purchasing power of the peso indicates that the same basket of goods and services worth 63 pesos in 2006 (base year) is now worth 100 pesos during the reference period.