Leyte’s Inflation rate drops at 3.2 percent in March 2019
The inflation rate in Leyte dropped at 3.2 percent in March 2019, representing a decrease of 1.1 percentage point compared to the 4.3 percent inflation rate in the previous month. Furthermore, this month’s rate is lower by 2.3 percentage point compared with the 5.5 percent inflation rate in the same period of last year. This is the lowest inflation rate recorded in Leyte since March 2018. Leyte’s inflation rate was higher compared to region’s inflation rate since December 2018.
All of the commodity groups contributed to the 3.2 percent overall inflation rate except Education with -18.4 percent inflation to attribute the significant impact of the Universal Access to Quality Tertiary Education Act. The following major commodity groups contributed to the provincial inflation rate: Housing, water, electricity, gas and other fuels (5.8 percent); Furnishings, household equipment and routine maintenance of the house (5.1 percent); Health (4.7 percent); Food and non-alcoholic beverages (4.4 percent); Recreation and Culture (4.2 percent); Alcoholic beverages and tobacco (2.8 percent); Clothing and Footwear (2.8 percent); Transport (2.4 percent); Restaurant and miscellaneous goods and services (1.9 percent); and Communication (0.4 percent).
Four major commodity groups posted increases on its month-on-month rate of price change. Transport reported the biggest increase with 1.0 percentage point from 1.4 percent in February 2019 to 2.4 percent in March 2019. This was followed by the 0.2 percentage point increment on the inflation rates of Furnishing, household equipment and routine maintenance of the house, and Restaurant and Miscellaneous goods and services, then 0.1 percentage point for Clothing and footwear.
On the other hand, inflation rate of Alcoholic beverages and tobacco reported a drop of 8.3 percentage points, from 11.1 percent in February 2019 to 2.8 percent in March 2019. Other major commodities also posted drop such as in Food and non-alcoholic beverages, from 5.7 percent to 4.4 percent; and Housing, water, electricity, gas and other fuels, from 7.1 percent to 5.8 percent.
Previous month’s inflation rates for Health (4.7 percent), Communication (0.4 percent), Recreation and culture (4.2 percent), and Education (-18.4 percent) 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 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 2019 was recorded at 121.7. This means that the average retail prices of goods and services in Leyte is 21.7 percent higher than the average retail prices in 2012 (base year).
The Purchasing Power of Peso (PPP) in Leyte for March 2019 remained at 82 centavos. Likewise, the PPP for Region 8 stood still at 80 centavos during reference month. This purchasing power of the peso indicates that the same basket of goods and services worth 82 pesos in 2012 (base year) is worth 100 pesos during the reference period.