HIGHLIGHTS OF THE AUGUST 2017 PRICE SITUATION IN LEYTE (2006=100)
Inflation rate in Leyte posts at 4.2 percent in August
Inflation rate in Leyte continuously increases since the start of the year at a slower rate. It stands at 4.2 percent in August 2017, representing an increase of 0.3 percentage point compared to the 3.9 percent inflation rate in the previous month. The region’s inflation rate also increased from 3.9 percent in July to 4.0 percent during the reference month. However, Leyte posted a higher average inflation rate in the reference month at 4.2 percent compared to regional average at 4.0 percent. This was the second month in a row, July and August 2017, which Leyte registered higher inflation rates after lagging behind the region in the first six months of 2017.
Most of the commodity groups contributed to the 4.2 percent overall inflation rate which include Education (10.4 percent); Food and non-alcoholic beverages (5.3 percent); Alcoholic beverages and tobacco (5.2 percent); Health (4.1 percent); Housing, water, electricity, gas and other fuels (2.6 percent); and Restaurant and miscellaneous goods and services (2.0 percent) and Clothing and Footwear (1.7). The rest of the commodity groups registered an inflation rate ranging from 0.1 to 1.5 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).
Previous month’s inflation rate for Communication, Recreation and Culture and Education 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 August 2017 was recorded at 161.1. This means that the average retails prices of goods and services in Leyte is 61.1 percent higher than the average retail prices in 2006 (base year).
Purchasing Power of Peso (PPP) remains at 62 centavos in August
Purchasing Power of the Peso in Leyte for August 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.