HIGHLIGHTS OF THE MARCH 2018 PRICE SITUATION IN LEYTE (2006=100)
Inflation rate in Leyte at 6.3 percent in March 2018
Inflation rate in Leyte increased at 6.3 percent in March 2018, representing an increase of 0.8 percentage point compared to the 5.5 percent inflation rate in the previous month. Likewise, region’s inflation rate increased from 5.2 percent in February 2018 to 5.8 percent during the reference month. Average inflation rate in Leyte was higher than Region 8 during the reference month.
Most of the commodity groups contributed to the 6.3 percent overall inflation rate. The following major commodity groups significantly contributed to the provincial inflation rate: Alcoholic beverages and tobacco (23.2 percent); Education (11.3 percent); Health (8.7 percent); Food and non-alcoholic beverages (8.1 percent); Restaurant and miscellaneous goods and services (4.8 percent); Transport (4.3 percent); Clothing and footwear (2.7 percent); Furnishings, household equipment and routine maintenance of the house (2.6 percent); and Recreation and culture (2.0 percent).
Six major commodity groups reflected higher inflation rate in March 2018 as compared to February 2018. Alcoholic beverages and tobacco reported the biggest increase by 6.6 percentage points, from 16.6 percent in February 2018 to 23.2 percent in March 2018. This was followed by the 1.8 percentage points increment on the inflation rate of Housing, water, electricity, gas and other fuels. Moreover, other major commodity groups that also posted an increase on its inflation rates were the following: Restaurant and miscellaneous goods and services (1.1 percentage points); Clothing and footwear (0.3 percentage point); Food and nonalcoholic beverages (0.2 percentage point); and Transport (0.1 percentage point).
On the other hand, inflation rate of Health decreased by 0.1 percentage point from 8.8 percent in February 2018 to 8.7 percent in March 2018.
Previous month’s inflation rates of Education, Furnishings, household equipment and routine maintenance of the house, Recreation and Culture, and Communication 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 March 2018 was recorded at 167.5. This means that the average retail prices of goods and services in Leyte is 67.5 percent higher than the average retail prices in 2006 (base year).
Purchasing Power of Peso (PPP) maintains at 60 centavos in March 2018
Purchasing Power of the Peso in Leyte was maintained at 60 centavos in March 2018. Similarly, the PPP for Region 8 was also maintained at 60 centavos during the month-in-review. This purchasing power of the peso indicates that the same basket of goods and services worth 60 pesos in 2006 (base year) is worth 100 pesos during the reference period.