HIGHLIGHTS OF THE OCTOBER 2017 PRICE SITUATION IN LEYTE (2006=100)
Leyte maintains 4.3 percent inflation rate in October
Inflation rate of Leyte in the previous month was maintained in October 2017 at 4.3 percent. Average provincial inflation rate in Leyte is generally higher than the regional average since July 2017 until the reference period. Most of the commodity groups contributed to the 4.3 percent overall inflation rate which include Education (10.4 percent); Food and non-alcoholic beverages (6.1 percent); Health (5.2 percent); Alcoholic beverages and tobacco (5.0 percent); Transport (3.7 percent); Restaurant and miscellaneous goods and services (3.2 percent); clothing and footwear (2.2 percent). The rest of the registered acceleration ranging from 0.1 to 2.0 percent.
From September 2017 to October 2017, six (6) major commodity groups posted an increase on its year-on-year rate of price change. Transport reported the biggest increase by 0.9 percentage point from 2.8 percent in September 2017 to 3.7 percent in October 2017. Meanwhile Alcoholic beverages and tobacco and Furnishing household equipment and routine maintenance of the house decreased by 0.2 percent and 0.1 percent.
On the other hand, Housing, water, electricity, gas and other fuels noted a negative inflation rate of (-0.8 percent). This may be traced to lower prices for selected household textiles, appliances, and kitchenware. Education and Clothing and footwear were the 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 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 particular area. The overall CPI in Leyte for October 2017 was recorded at 161.4. this means that the average retails prices of goods and services in Leyte is 61.4 percent higher than the average retail prices in 2006 (base year).
Purchasing Power of Peso (PPP) remains at 62 centavos in October
Purchasing Power of the Peso in Leyte for October 2017 was maintained at 62 centavos, while the PPP for Region 8 weakened at 62 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.