Inflation rate in Leyte recorded at 4.3 percent in September 2017

Reference Number: 

17PR0837 - 31

Release Date: 

Monday, October 23, 2017

17PR0837 - 31

PRESS RELEASE

23 October 2017 

 

Inflation rate in Leyte recorded at 4.3 percent in September 

 

Inflation rate in Leyte continuously increases since the start of the year at a slower rate. It stands at 4.3 percent in September 2017, reporting an increase of 0.1 percentage point compared to the 4.2 percent inflation rate in the previous month. The region’s inflation rate also increased from 4.0 percent in August to 4.1 percent during the reference month. Leyte average inflation rate in September is higher compared to regional average.  

Most of the commodity groups contributed to the 4.3 percent overall inflation rate which include Education (10.4 percent); Food and non-alcoholic beverages (5.6 percent); Alcoholic beverages and tobacco (5.2 percent); Health (5.0 percent); Restaurant and miscellaneous goods and services (3.0 percent); Transport (2.8 percent) and Clothing and Footwear (2.2 percent). The rest of the commodity groups registered an inflation rate ranging from 1.2 to 1.8 percent.Six (6) major commodity groups reflected higher inflation rate in August as compared to July. Food and non-alcoholic beverages posted the biggest increase by 1.1 percentage point, from 4.2 percent in July 2017 to 5.3 percent. The rest of the commodity groups reported decreases which includes Housing, water, electricity, gas and other fuels (2.0 percentage point) and Restaurant and miscellaneous goods and services (0.2 percentage point).  
 
Seven (7) major commodity groups reflected higher inflation rate in September as compared to August. Transport reported the biggest increase by 1.3 percentage points, from 1.5 percent in August 2017 to 2.8 percent. Meanwhile, Housing, water, electricity, gas and other fuels and Restaurant and miscellaneous goods and services. 
 
Education and Alcoholic beverages and tobacco were the commodity group which sustained its inflation rate 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 September 2017 was recorded at 161.7.  This means that the average retails prices of goods and services in Leyte is 61.7 percent higher than the average retail prices in 2006 (base year). 
 
Purchasing Power of the Peso in Leyte for September 2017 was maintained at 62 centavos, while the PPP for Region 8 weakened at 62 centavos during the reference month. This purchasing power of the peso indicates that the same basket of goods and services worth 62 pesos in 2006 (base year) is now worth 100 pesos during the reference period.

 

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