HIGHLIGHTS OF THE JANUARY 2017 PRICE SITUATION IN LEYTE (2006=100)
Inflation rate in Leyte at 2.5 percent in January
Inflation rate in Leyte posted at 2.5 percent in January 2017, representing an increase by 0.6 percentage point compared to the 1.9 percent inflation rate in the previous month. Average provincial inflation rate in Leyte is generally higher than the regional average since January 2016 except in November until the reference period.
Most of the commodity groups contributed to the 2.5 percent overall inflation rate which include Housing, water, electricity, gas and other fuels (6.9 percent); Education (3.8 percent); Alcoholic beverages and tobacco (3.7 percent); Transport (1.6 percent); Health (1.5 percent); and Food and non-alcoholic beverages (1.5 percent).The rest of the commodity groups registered acceleration ranging from 0.2 to 1.2 percent.
From December 2016 to January 2017, three (3) major commodity groups posted a decrease on its year-on-year rate of price change. The decrease was noted on the inflation rate of Transport (from 3.4 percent in December 2016 to 1.6 percent in January 2017). It was attributed to the significant decrease on the inflation rate of Transport Services by 5.0 percentage points. The rest of the commodity groups which includes Alcoholic beverages and Tobacco and Furnishings, household equipment and routine maintenance of the house went down by 0.7 percentage point and 0.2percentage point, respectively.
Previous month’s inflation rate for Food and Non-Alcoholic beverages, Health, 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 January 2017 was recorded at 156.1. This means that the average retails prices of goods and services in Leyte is 56.1 percent higher than the average retail prices in 2006 (base year).
Purchasing Power of Peso (PPP) remains at 64 centavos in January
The Purchasing Power of the Peso in Leyte for December 2016 was sustained during the reference month at 64 centavos, the same level for Region 8. 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.