HIGHLIGHTS OF THE APRIL 2017 PRICE SITUATION IN LEYTE (2006=100)
Inflation rate in Leyte posts at 3.3 percent in April
Inflation rate in Leyte slightly increased at 3.3 percent in April 2017, representing an increase by 0.5 percentage point compared to the 2.8 percent inflation rate in the previous month. Average provincial inflation rate in Leyte is higher than the regional average since April 2016 except in November until the reference period. The region’s inflation rate posted at 4.1 percent during the month- in- review.
Most of the commodity groups contributed to the 3.3 percent overall inflation rate which include Housing, water, electricity, gas and other fuels (7.8 percent); Alcoholic beverages and tobacco (4.5 percent); Education (3.8 percent); Transport (3.4 percent); Food and non-alcoholic beverages (2.5 percent); and Health (1.2 percent). The rest of the commodity groups registered acceleration ranging from 0.2 to 1.0 percent.
On the other hand, of the major commodity groups, only Health recorded a drop in inflation rate from 1.3 percent in March to 1.2 percent in April 2017 due to the decrease in the inflation rate of Medical Products, Appliances and equipment by 0.3 percentage points.
Previous month’s inflation rate for Alcoholic Beverages, Clothing and Footwear, Furnishings, Household Equipment and Routine Maintenance of the House, Communication, Education and Restaurant and miscellaneous goods and services were maintained 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 April 2017 was recorded at 158.1. This means that the average retails prices of goods and services in Leyte is 58.1 percent higher than the average retail prices in 2006 (base year).
Purchasing Power of Peso (PPP) remains at 63 centavos in April
Purchasing Power of the Peso in Leyte for April 2017 was maintained during the reference month at 63 centavos, the same level for Region 8. This purchasing power of the peso indicates that the same basket of goods and services worth 63 pesos in 2006 (base year) is now worth 100 pesos during the reference period.