HIGHLIGHTS OF THE FEBRUARY 2017 PRICE SITUATION IN LEYTE (2006=100)
Inflation rate in Leyte at 2.6 percent in February
Inflation rate in Leyte slightly increased at 2.6 percent in February 2017, representing an increase by 0.1 percentage point compared to the 2.5 percent inflation rate in the previous month. Average provincial inflation rate in Leyte is generally higher than the regional average since February 2016 except in November until the reference period.
Most of the commodity groups contributed to the 2.6 percent overall inflation rate which include Housing, water, electricity, gas and other fuels (7.8 percent); Alcoholic beverages and tobacco (4.1 percent); Education (3.8 percent); Transport (2.0 percent); Health (1.3 percent); and Food and non-alcoholic beverages (1.3 percent).The rest of the commodity groups registered acceleration ranging from 0.2 to 1.0 percent.
The year-on-year rate of price change of three (3) major commodity groups slowed in February 2017 as compared to its rates in January. The decrease was noted on the inflation rate of Health (from 1.5 percent in January to 1.3 percent in February 2017); Food and Non-Alcoholic Beverages (from 1.5 percent in January to 1.3 percent in February 2017); and Restaurant and Miscellaneous goods and Services (from 1.2 percent in January to 1.0 percent in February 2017).
Previous month’s inflation rate for Clothing and Footwear, Communication, Recreation and Culture and Education were maintained during the month-inreview.
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 February 2017 was recorded at 156.8. This means that the average retails prices of goods and services in Leyte is 56.8 percent higher than the average retail prices in 2006 (base year).
Purchasing Power of Peso (PPP) remains at 64 centavos in February
The Purchasing Power of the Peso in Leyte for February 2017 was sustained during the reference month at 64 centavos, while PPP for Region 8 weakened at 63 centavos during the same period. This purchasing power of the peso indicates that the same basket of goods and services worth 64 pesos in 2006 (base year) is now worth 100 pesos during the reference period.