Inflation rate in Leyte posts 7.1 percent in October 2018
The inflation rate in the province slightly increased to 7.1 percent in October 2018 from 6.3 percent in the previous month. However, this month’s rate is 4.1 percentage points higher compared with the 3.0 percent inflation rate in the same period of 2017 year. Leyte’s inflation rate was slightly higher compared to region’s inflation rate at 6.9 percent during reference month.
Most of the commodity groups contributed to the 7.1 percent overall inflation rate. The following major commodity groups significantly contributed to the provincial inflation rate: Alcoholic beverages and tobacco (29.8 percent); Transport (10.2 percent); Housing, water, electricity, gas and other fuels (9.8 percent); Food and non-alcoholic beverages (9.2 percent); Recreation and Culture (4.4 percent); Health (3.4 percent); Furnishings, household equipment and routine maintenance of the house (2.5 percent); Restaurant and miscellaneous goods and services (1.2 percent).
Five major commodity groups reflected higher inflation rate in October 2018 as compared to the previous month. Housing, water, electricity, gas and other fuels posted significant increase from 6.6 percent in September 2018 to 9.8 percent in October 2018. Followed by Transport posted 1.4 percentage points, then Food and non-alcoholic beverages (0.3 percentage point), Alcoholic beverages and tobacco and Restaurant and miscellaneous goods and services posted 0.1 percentage point increment on month-onmonth inflation.
Previous month’s inflation rates of Recreation and culture (4.4 percent), Health (3.4 percent), Furnishing, household equipment and routine maintenance of the house (2.5 percent), Clothing and footwear (0.7 percent), Communication (0.4 percent) and Education (18.4 percent) 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 October 2018 was recorded at 122.0. This means that the average retail prices of goods and services in Leyte is 22 percent higher than the average retail prices in 2012 (base year).
Purchasing Power of Peso (PPP) weakens at 82 centavos in October 2018