Samar’s inflation rate (IR) increased to 5.8 percent in January 2021, posting a slight growth from the 5.5 percent in December 2020. The figure is 3.8 percentage points higher than the 2.0 inflation rate recorded in the same month last year. (See Figure 1)

      Among provinces, Samar posted the highest inflation rate in January 2021. This was followed by Northern Samar and Southern Leyte at 3.3 and 3.0 percent, respectively. (See Figure 2)

BY COMMODITY GROUP

     Among eleven commodity groups, seven (7) yielded increases in inflation rate in January 2021. The Transport group generated the highest increase of 2.3 percent. Other commodity groups include: Furnishings, Household Equipment and Routine Household Maintenance (1.9%); Health (0.9%); Restaurants and Miscellaneous Goods and Services (0.8%); Food and Non-Alcoholic Beverages (0.4%); Recreation and Culture (0.3%); and Communication (0.1%). (See Figure 3)

     Meanwhile, three (3) commodity groups exhibited decreases in January 2021, namely: Alcoholic Beverages; Clothing and Footwear; and Housing, Water, Electricity, Gas and Other Fuels.

PURCHASING POWER OF PESO

     A decrease in the purchasing of peso was recorded during the first month of 2021 at 0.70 indicating that the prices of the same market basket of goods and services worth Php 100.00 in 2012 would cost Php 70.00 in January 2021. (See Figure 4)

MONTHLY CONSUMER PRICE INDEX

     A Consumer Price Index (CPI) of 142.3 was recorded in January 2021 yielding a difference of 1.7 from the CPI generated in December 2020. (See Figure 50)

SGD. RIZA N. MORALETA 
Chief Statistical Specialist

TECHNICAL NOTES

Consumer Price Index (CPI) - An indicator of the changes in the average retail prices of a fixed market basket of goods and services commonly purchased by households relative to a base year. 

Uses of CPI - The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso. It is a major statistical series used for economic analysis and as a monitoring indicator of government economic policy. 

Base Period/Year - The reference date or base period is the benchmark or reference date or period at which the index is taken as equal to 100. The current base period is 2012. 

Market Basket - A sample of goods and services purchased for consumption availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers. 

Weight - A value attached to a commodity or group of commodities to indicate the relative importance of that commodity or group of commodities in the market basket. 

Formula - The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2012) weights. 

Geographic Coverage - CPI values are computed at the national, regional, and provincial levels, and for selected cities. 

Inflation Rate - is the rate of change of the CPI expressed in percent. Inflation is interpreted in terms of the declining purchasing power of peso. 

Headline Inflation - refers to the rate of change in the CPI, a measure of the average standard “basket” of goods and services consumed by a typical family. 

Purchasing Power of Peso - shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.

SGD. RIZA N. MORALETA 
Chief Statistical Specialist