HIGHLIGHTS OF THE JULY 2017 PRICE SITUATION IN LEYTE (2006=100)
Inflation rate in Leyte marks at 3.9 percent in July
Inflation rate in Leyte continuously increases since the start of the year at a slower rate. It stands at 3.9 percent in July 2017, representing an increase of 0.3 percentage point compared to the 3.6 percent inflation rate in the previous month. Average provincial inflation rate in Leyte is higher than the regional average since July 2017 except in November until the month of June. The region’s inflation rate decreased from 4.1 percent in April to 3.8 percent during the reference month.
Most of the commodity groups contributed to the 3.9 percent overall inflation rate which include Education (10.4 percent); Alcoholic beverages and tobacco (5.0 percent); Housing, water, electricity, gas and other fuels (4.6 percent); Food and non-alcoholic beverages (4.2 percent); Health (3.3 percent) and Restaurant and miscellaneous goods and services (2.2 percent). The rest of the commodity groups registered an inflation rate ranging from 0.1 to 1.3 percent
Seven (7) major commodity groups reflected higher inflation rate in July as compared to June. Food and non-alcoholic beverages posted the biggest increase by 0.8 percentage point, from 3.4 percent in June 2017 to 4.2 percent. The rest of the commodity groups reported decreases which includes Housing, water, electricity, gas and other fuels (0.8 percentage point); Transport (0.8 percentage point) and Communication (0.1 percentage point).
Education was the only commodity group which sustained its inflation rate 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 July 2017 was recorded at 160.3. This means that the average retails prices of goods and services in Leyte is 60.3 percent higher than the average retail prices in 2006 (base year).
Purchasing Power of Peso (PPP) drops at 62 centavos in July
Purchasing Power of the Peso in Leyte for July 2017 weakened at 62 centavos, while the PPP for Region 8 remains at 63 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.