HIGHLIGHTS OF THE JANUARY 2018 PRICE SITUATION IN LEYTE (2006=100)
Inflation rate in Leyte marks at 4.5 percent in January 2018
Inflation rate in Leyte slightly decreased in January 2018. It stands at 4.5 percent reporting a decrease of 0.2 percentage point compared to the 4.7 percent inflation rate in the previous month. The region’s inflation rate increased from 4.0 percent in December 2017 to 4.5 percent during the reference month. Average inflation rate in Leyte and in Region 8 were the same during the reference month.
Most of the commodity groups contributed to the 4.5 percent overall inflation rate. The following major commodity groups significantly contributed to the provincial inflation rate: Education (11.3 percent); Food and non-alcoholic beverages (6.8 percent); Health (6.4 percent); Alcoholic beverages and tobacco (6.1 percent); Restaurant and miscellaneous goods and services (3.5 percent); Transport (3.4 percent); Clothing and footwear (2.2 percent); and Recreation and culture (2.0 percent).
From December 2017 to January 2018, five major commodity groups posted an increase on its year-on-year rate of price change. Transport reported the biggest increase by 2.7 percentage points from 0.7 percent in December 2017 to 3.4 percent in January 2018. This was followed by the 1.0 percentage point increment on the inflation rate of Alcoholic beverages and tobacco. Moreover, other major commodity groups that also posted an increase on its inflation rates were the following: Restaurant and miscellaneous goods and services (0.4 percentage point); Food and non-alcoholic beverages (0.3 percentage point) and Furnishings, household equipment and routine maintenance of the house (0.2 percentage point).
On the other hand, inflation rate of Housing, water, electricity, gas and other fuels decreased by 3.0 percentage points from 1.0 percent in December 2017 to -2.0 percent in January 2018.
Previous month’s inflation rates of Clothing and footwear, Health, Communication, Recreation and Culture, and Education 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 January 2018 was recorded at 163.2. This means that the average retail prices of goods and services in Leyte is 63.2 percent higher than the average retail prices in 2006 (base year).
Purchasing Power of Peso (PPP) remains at 61 centavos in January 2018
Purchasing Power of the Peso in Leyte was maintained at 61 centavos in January 2018, while the PPP for Region 8 weakened at 61 centavos from 62 centavos in December 2017. This purchasing power of the peso indicates that the same basket of goods and services worth 61 pesos in 2006 (base year) is worth 100 pesos during the reference period.