Leyte’s Inflation rate rises to 3.8 percent in May 2019
The inflation rate in Leyte accelerated to 3.8 percent in May 2019, representing an increase of 0.3 percentage point compared to the 3.5 percent inflation rate in the previous month. Furthermore, this month’s rate is lower by 1.7 percentage points compared with the 5.5 percent inflation rate in the same period of last year. Leyte’s inflation rate remained higher compared to region’s inflation rate since December 2018.
All of the commodity groups contributed to the 3.8 percent overall inflation rate except Education which posted -18.4 percent inflation rate attributable to the significant impact of the Universal Access to Quality Tertiary Education Act. The following major commodity groups contributed to the provincial inflation rate: Furnishings, household equipment and routine maintenance of the house (6.3 percent); Transport (6.1 percent); Food and non-alcoholic beverages (5.3 percent); Health (4.8 percent); Recreation and Culture (4.2 percent); Housing, water, electricity, gas and other fuels (4.0 percent); Restaurant and miscellaneous goods and services (2.8 percent); Alcoholic beverages and tobacco (2.9 percent); Clothing and Footwear (2.9 percent); and Communication (0.4 percent).
Four major commodity groups posted increases on its month-on-month rate of price change. Transport reported the biggest increase with 0.5 percentage point from 5.6 percent in April 2019 to 6.1 percent in May 2019. This was followed by the 0.3 percentage point increment on the inflation rates of Food and non-alcoholic beverages house, 0.1 percentage point for Health, and Restaurant and Miscellaneous goods and services.
Previous month’s inflation rates for Furnishing, household equipment and routine maintenance of the house (6.3 percent), Housing, water, electricity, gas and other fuels (4.0 percent), Clothing and footwear (2.9 percent), Communication (0.4 percent), and Education (-18.4 percent) were sustained during the month-in-review.
On the other hand, Alcoholic beverages and tobacco reported a drop of 0.3 percentage point, from 3.2 percent in April 2019 to 2.9 percent in May 2019. Likewise, Recreation and culture reported a drop from 4.4 percent in previous month to 4.2 in the reference month.
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 2019 was recorded at 123.3. This means that the average retail prices of goods and services in Leyte is 23.3 percent higher than the average retail prices in 2012 (base year).//