Inflation rate in Leyte at 7.4 percent in May 2018
Inflation rate in Leyte continuously increased since February 2018. The rate of price increases in May 2018 stood at 7.4 percent reporting a slight increase of 0.6 percentage point compared to the 6.8 percent inflation rate in the previous month. Likewise, region’s inflation rate increased from 6.2 percent in April 2018 to 6.7 percent during the reference month. Average inflation rate in Leyte was consistently higher than the region’s average since March 2018.
Most of the commodity groups contributed to the 7.4 percent overall inflation rate. The following major commodity groups significantly contributed to the provincial inflation rate: Alcoholic beverages and tobacco (27.0 percent); Education (11.3 percent); Food and non-alcoholic beverages (8.8 percent); Health (8.7 percent); Restaurant and miscellaneous goods and services (5.1 percent); Housing, water, electricity, gas and other fuels (3.6 percent); Furnishings, household equipment and routine maintenance of the house (2.8 percent); Clothing and footwear (2.7 percent); Transport (1.9 percent); Recreation and culture (1.8 percent); and Communication (0.1 percent).
Five major commodity groups reflected higher inflation rate in May 2018 as compared to the previous month. Alcoholic beverages and tobacco reported the biggest increase by 3.8 percentage points from 23.2 percent in April 2018 to 27.0 percent in May 2018. This was followed by the 1.8 percentage points increment on the inflation rate of Housing, water, electricity, gas and other fuels, Food and non-alcoholic beverages by 0.5 percentage point, Restaurant and miscellaneous goods and services by 0.3 percentage point, and Furnishing, household equipment and routine maintenance of the house by 0.2 percentage point.
On the other hand, inflation rate of Transport decreased by 2.0 percentage points from 3.9 percent in April 2018 to 1.9 percent in May 2018.
Previous month’s inflation rates of Clothing and footwear, Health, Communication, Recreation and Culture, and Education 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 May 2018 was recorded at 170.1. This means that the average retail prices of goods and services in Leyte is 70.1 percent higher than the average retail prices in 2006 (base year).
Purchasing Power of the Peso in Leyte was maintained at 59 centavos in May 2018. Similarly, the PPP for Region 8 was also maintained at 59 centavos during the month-in-review. This purchasing power of the peso indicates that the same basket of goods and services worth 59 pesos in 2006 (base year) is worth 100 pesos during the reference period.//