TACLOBAN CITY – Inflation rate in the province of Leyte slightly increased at 2.8 percent in March 2017, representing an increase of 0.2 percentage point, compared to the 2.6 percent inflation rate recorded the previous month.
The average provincial inflation rate in Leyte is generally higher than the regional average since March 2016 except in November until the reference period.
Most of the commodity groups contributed to the 2.8 percent overall inflation rate which include Housing, water, electricity, gas and other fuels (7.5 percent); Alcoholic beverages and tobacco (4.5 percent); Education (3.8 percent); Food and non-alcoholic beverages (1.9 percent); Transport (1.4 percent), and Health (1.3 percent). The rest of the commodity groups registered acceleration ranging from 0.2 to 1.0 percent.
The year-on-year rate of price change of four major commodity groups slowed down in March 2017 as compared to its rates in February. The decrease was noted on the inflation rate of Transport (from 2.0 percent in February to 1.4 percent in March 2017); Housing, water, electricity, gas and other fuels (from 7.8 percent to 7.5 percent); Clothing and Footwear (from 0.9 percent to 0.7 percent) and Furnishing, household equipment and Routine maintenance of the house (from 1.0 percent to 0.9 percent).
Previous month’s inflation rate for Health, Communication, Recreation and Culture, Education and Restaurant and miscellaneous goods and services 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 2017 was recorded at 157.6. This means that the average retail prices of goods and services in Leyte is 57.6 percent higher than the average retail prices in 2006 (base year).
Meanwhile, the Purchasing Power of the Peso (PPP) in Leyte weakened at 63 centavos in March 2017 from 64 centavos in February 2017, while PPP for Region 8 weakened at 63 centavos since February the same year. This indicates that the same basket of goods and services worth P63 in 2006 (base year) is now worth P100 during the reference period. (PSA-Leyte)