Thursday, February 1, 2018
PRICE SITUATION: YEAR-ON-YEAR
The Bicol Region’s inflation rate in December 2017 went down to 4.0 percent. Compared to the 3.2 percent inflation rate in the same period last year, the December 2017 rate was higher by 0.8 percentage points.
The decrement was mainly attributed to the Inflation Rate by the Food and Non-Alcoholic Beverages group (from 5.8 percent to 5.0 percent).
Meanwhile the Commodity/Service groups that made increment Alcoholic Beverages and Tobacco (from 4.7 percent to 6.2 percent), Clothing and Footwear (from 1.7 percent to 2.5 percent), Housing, Water, Electricity, Gas and Other Fuels (from 3.4 percent to 3.9 percent), Furnishing, Household Equipment and Routine Maintenance of the House ( from 1.8 percent to 2.5 percent), Health (1.6 percent to 1.8 percent), Transport 90.4 percent to 0.7 percent), Recreation and Culture (from 0.8 percent to 1.0 percent), and Restaurants and Miscellaneous Goods and Services (from 3.0 percent to 3.1 percent)
Communication and Education remained at 1.2 percent and 0.5 percent respectively.
Camarines Sur province has the highest Inflation Rate in the region at 5.1 percent while Masbate remained to have the lowest Inflation Rate at 2.7 percent. Albay pegged at 4.0 percent. Camarines Norte remained at 3.6 percent while Sorsogon went up to 3.0 percent and so with Catanduanes ascended to 3.7 percent.
PRICE SITUATION: MONTH-ON-MONTH
On a month-on-month basis, the general prices of consumer items went up at 0.6 percent. The increase was greatly attributed by the following Commodity/Service Groups; Alcoholic Beverages and Tobacco (from 0.2 percent to 1.4 percent), Furnishings, Household and Equipment and Routine Maintenance of the House (from 0.1 percent to 0.9 percent), Housing, Water, Electricity, Gas and Other Fuels (from 0.3 percent to 0.5 percent), Health (from 0.1 percent to 0.2 percent) and Recreation and Culture (from 0.1 percent to 0.2 percent).
On the hand, the Commodity/Service Groups that went down are Food and Non-Alcoholic Beverages (from 0.3 percent to 0.6 percent), Clothing and Footwear (0.5 percent to 0.4 percent) and Transport (from 1.3 percent to 1.2 percent).
Education and Communication remained at 0.0 percent and so with Restaurants and Miscellaneous Goods and Services which is pinned at 0.1 percent.
Purchasing Power of Peso in Bicol Region pegged at 0.65. Albay has the highest Purchasing Power of Peso at 0.68 while Masbate is the lowest at 0.62. Camarines Norte and Sorsogon were at 0.64 while Catanduanes and Camarines Sur remained at 0.63.
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 2006 market basket was determined based on the results of the 2006 update of the 2000 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.