Consumer Price Index for all Income Households in Bicol Region: August 2018

Reference Number: 

2018- 016

Release Date: 

Friday, September 7, 2018
PRICE SITUATION: YEAR-ON-YEAR
 
The Bicol Region’s inflation rate in August 2018 zoomed to 9.0 percent. Compared
to the 0.8 percent inflation rate in the same period last year, the August 2018 rate was higher
by 8.2 percentage points.
The upsurge was attributed to the Inflation Rate by almost all of the
Commodity/Service group; Food and Non-Alcoholic Beverages (from 10.9 percent to
12.7 percent), Alcoholic Beverages and Tobacco (from 17.4 to 18.0 percent), Clothing and
Footwear (from 4.3 percent to 4.7 percent), Housing, Water, Electricity, Gas and Other Fuels
(from 4.4 percent to 7.4 percent), Furnishings, Household Equipment and Routine
Maintenance of the House (from 6.5 percent to 6.7 percent), Health (from 13.3 percent to
14.2 percent), Transport (from 5.3 percent to 6.0 percent), Recreation and Culture
(from 1.7 percent to 2.4 percent), Education (from -22.4 percent to -22.0 percent) and
Restaurants and Miscellaneous Goods and Services (from 4.1 percent to 5.0 percent)
On the other hand, Communication went down from 1.7 percent to 1.6 percent.
Inflation Rate in Camarines Norte went up to 10.0 percent and provinces posted
higher Inflation Rate than of the Region are Camarines Sur at 9.8 percent, Masbate at 9.2
percent and Albay at 9.1 percent. Meanwhile, Catanduanes and Sorsogon ticked at 8.1
percent and 6.6 percent respectively.
 
PRICE SITUATION: MONTH-ON-MONTH
 
On a Month-on-month bases, the general prices of consumer items went up by 1.5
percent.The increase was observed on Education (from -23.2 percent to 0.5 percent), Food
and Non-Alcoholic Beverages (from 1.0 percent to 1.8 percent), Alcoholic Beverages and
Tobacco (from 0.4 percent to 0.8 percent), Housing, Water, Electricity, Gas and Other Fuels
(from 0.9 percent to 2.1 percent), Transport (from -0.7 to 0.2 percent), Health (from 0.7
percent to 0.8 percent) and Recreation and Culture (from 0.4 percent to 0.7 percent).
On the other hand, prices went down on the following Commodity/Service Groups;
Furnishings, Household Equipment and Routine Maintenance of the House (from 1.1
percent to 0.3 percent), Communication (from 0.3 percent to 0.0 percent) and Restaurants
and Miscellaneous Goods and Services (from 1.1 percent to 1.0 percent).
Clothing and Footwear is pegged at 0.5 percent.
With all the observed price changes in CPI, the Purchasing Power of Peso in Bicol
was observed at 0.84. Catanduanes and Masbate remained at 0.85 and 0.83 respectively.
Sorsogon still strong at 0.89 while Camarines Norte and Camarines Sur posted weaker PPP
than that of the region at 0.81 and 0.82 respectively.
 
 
DEFINITIONS AND CONCEPTS
 
Consumers’ Price Index - a statistical measure of the change in average retail prices of a
fixed basket of goods and services bought by a specific group of consumers in a given area
in a given period of time.
 
Purchasing Power of the Currency or Peso (PPP) - a measure of the volume of goods and
services which the currency can buy at any given period relative to that which it could purchase
during the base year. It is computed as the reciprocal of the CPI for the period under review
multiplied by 100.
 
Market Basket - the total number of goods and services in constant amounts and qualities
which are samples of the goods and services available in the market and included in the
construction of the index. CPI market basket was selected to represent the composite price
behavior of all goods and services purchased by consumers. Composition of the 2012 market
basket was determined based on the results of the 2012 update of the 2006 basket. Provinces
and selected cities had own market baskets.
 
Base Year - it identifies the base period with which the index relates. It is a period of time
chosen as reference on which a price index is computed. The index for the base year is 100.
 
Retail Price - the actual price at which retailers sell a commodity on spot or earliest delivery,
usually in small quantities for consumption and not for resale. It is confined to transactions on
cash basis in the free market and excludes black-market prices and prices of commodities
that are on sale as in summer sales, anniversary sales, Christmas sales, etc.
 
Percent Change - the percent point change expressed as percent of the index of the earliest
date.
 
Inflation Rate - the annual rate of change or the year-on-year change of the CPI. Inflation is
interpreted in terms of declining purchasing power of money.
 
Note to Users:
The monthly Consumers Price Index is computed based on the average retail prices
of goods and services collected during the first week and mid-month of the reference
month.

 

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