Inflation rate (IR) in Samar Province has been decreasing for the past two months. In July 2021, the inflation rate declined to 6.9 percent from 7.8 percent recorded in the previous month. However, this figure is 4 percentage points higher than the 2.9 percent inflation rate recorded in the same month last year. (See Figure 1)

     Among the six provinces, Samar posted the highest inflation rate in July 2021. Eastern Samar and Biliran followed with 6.1 and 4.5 percent, respectively. Meanwhile, Northern Samar posted the lowest IR at 1.5 percent. (See Figure 2)

BY COMMODITY GROUP

     From the eleven (11) commodity groups, two yielded increases in inflation rate namely: Alcoholic Beverages and Tobacco commodity group (2.6%) and Health (0.2%). 

     On the other hand, eight (8) commodity groups exhibited decreases in July 2021 compared to the previous month, to wit: Furnishings, Household Equipment and Routine Household Maintenance (3.3%); Transport (2.9%); Restaurant and Miscellaneous Goods and Services (1.9%); Food and Non-Alcoholic Beverages (1.0%); Housing, Water, Electricity, Gas, and Other Fuels (0.5%); Clothing and Footwear (0.2%); Communication (0.1%); Recreation and Culture (0.1%). (See Figure 3)

PURCHASING POWER OF PESO

     Purchasing Power of Peso (PPP) remained at 0.69 for the month of July 2021, indicating that a peso in 2012 is only worth 0.69 centavos in July 2021. This implies that the prices of the same market basket of goods and services valued at Php 100.00 in 2012 are worth Php 69.00 in July 2021. (See Figure 4)

MONTHLY CONSUMER PRICE INDEX

     A Consumer Price Index (CPI) of 143.9 was recorded in July 2021 yielding a difference of 0.4 points from the CPI generated in June 2021. This is relatively higher by 9.3 points compared to the CPI generated from the same month in 2020.(See Figure 5)

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. 

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