Inflation rate (IR) in Samar Province continued to increase for the past six months. In May 2021, inflation rate rose to8.3 percent, from 6.7 percent in the previous month.This figureis 5.6 percentage points higher than the 2.7 percent inflation rate recorded in the same month last year. (See Figure 1)

Among provinces, Samar posted the highest inflation rate for May 2021. This was followed by Biliran and Eastern Samar at 5.5 and 5.4 percent, respectively. Meanwhile, Leyte posted the lowest IR at 0.9 percent. (See Figure 2)

BY COMMODITY GROUP

From the eleven (11) commodity groups, five (5) yielded increases in inflation rate in May2021.Food and Non-alcoholic Beverages commodity group generated the highest increase with 3.0 percent. Other commodity groups include: Housing, Water, Electricity, Gas, & Other Fuels (1.3%); Clothing and Footwear (0.1%); Furnishings, Household Equipment and Routine Household Maintenance (0.1%); and Restaurant and Miscellaneous Goods and Services (0.3%). 

On the other hand, three (3) commodity groups exhibited decreases in May 2021 compared to the previous month, namely: Transport (0.4%), Health (0.3%), and Alcoholic Beverages, Tobacco And Other Vegetable-Based Tobacco Products (0.3%).(See Figure 3)

PURCHASING POWER OF PESO

Purchasing Power of Peso (PPP)remained at0.69 for the month of May 2021 indicating that the prices of the same market basket of goods and services worth Php 100.00 in 2012 would cost Php 69.00 in May 2021. (See Figure 4)

MONTHLY CONSUMER PRICE INDEX

A Consumer Price Index (CPI) of 145.1 was recorded in May2021 yielding a difference of 2.0 from the CPI generated in April2021. This is relatively higher by 11.1 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. 

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