Inflation rate in Leyte records at 4.8 percent in November 2018
The inflation rate in the province decreased to 4.8 percent in November 2018 from 7.1 percent in the previous month. However, this month’s rate is 1.3 percentage points higher compared to the 3.5 percent inflation rate in the same period of 2017 year. Leyte’s inflation rate was slightly lower compared to region’s inflation rate at 5.2 percent during reference month.
Most of the commodity groups contributed to the 4.8 percent overall inflation rate. The following major commodity groups significantly contributed to the provincial inflation rate: Alcoholic beverages and tobacco (29.8 percent); Food and non-alcoholic beverages (7.3 percent); Transport (7.1 percent); Recreation and Culture (4.4 percent); Housing, water, electricity, gas and other fuels (3.2 percent); Furnishings, household equipment and routine maintenance of the house (2.6 percent); Restaurant and miscellaneous goods and services (1.3 percent); and Health (1.3 percent).
Previous month’s inflation rates of Alcoholic beverages and tobacco (29.8 percent); Recreation and culture (4.4 percent), Clothing and footwear (0.7 percent), Communication (0.4 percent) and Education (-18.4 percent) were sustained during the month-in-review.
Four (4) commodity group exhibited decreases in inflation rate during the reference month as compared in October 2018 with Housing, water, gas, and other fuels posting the biggest drop, from 9.8 percent to 3.2 percent. This was followed with Transport, from 10.2 percent to 7.1 percent; Health, from 3.4 percent to 1.3 percent; and Non-alcoholic beverages, from 9.2 percent to 7.3 percent.
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.
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 November 2018 was recorded at 120.2. This means that the average retail prices of goods and services in Leyte is 20.2 percent higher than the average retail prices in 2012 (base year).
The Purchasing Power of Peso in Leyte slightly increased at 83 centavos in November 2018 from 82 centavos in the previous month. Where as, the PPP for Region 8 was mantained at 80 centavos in November 2018. 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