Leyte’s Inflation rate surges to 3.5 percent in April 2019
The inflation rate in Leyte surged to 3.5 percent in April 2019, representing an increase of 0.3 percentage point compared to the 3.2 percent inflation rate in the previous month. Furthermore, this month’s rate is lower by 1.9 percentage point compared with the 5.4 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 3.5 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 (5.6 percent); Food and non-alcoholic beverages (5.0 percent); Health (4.7 percent); Recreation and Culture (4.4 percent); Housing, water, electricity, gas and other fuels (4.0 percent); Alcoholic beverages and tobacco (3.2 percent); Clothing and Footwear (2.9 percent); Restaurant and miscellaneous goods and services (2.7 percent); and Communication (0.4 percent).
Seven major commodity groups posted increases on its month-on-month rate of price change. Transport reported the biggest increase with 3.2 percentage points from 2.4 percent in March 2019 to 5.6 percent in April 2019. This was followed by the 1.2 percentage points increment on the inflation rates of Furnishing, household equipment and routine
maintenance of the house, 0.8 percentage point for Restaurant and Miscellaneous goods and services, 0.6 percentage point for Food and non-alcoholic beverages, 0.4 percentage point for Alcoholic beverages and tobacco, 0.2 percentage point for Recreation and culture, then 0.1 percentage point for Clothing and footwear.
On the other hand, only inflation rate of Housing, water, electricity, gas, and other fuels reported a drop of 1.8 percentage points, from 5.8 percent in March 2019 to 4.0 percent in April 2019.
Previous month’s inflation rates for Health (4.7 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 April 2019 was recorded at 122.8. This means that the average retail prices of goods and services in Leyte is 22.8 percent higher than the average retail prices in 2012 (base year).
Purchasing Power of Peso (PPP) weakens at 81 centavos in April 2019
The Purchasing Power of Peso (PPP) in Leyte for April 2019 weakened at 81 centavos. Although, the PPP for Region 8 stood still at 80 centavos during reference month. This purchasing power of the peso indicates that the same basket of goods and services worth 81 pesos in 2012 (base year) is worth 100 pesos during the reference period.