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

Reference Number: 

2019-001

Release Date: 

Friday, January 4, 2019
PRICE SITUATION: YEAR-ON-YEAR
 
The Bicol Region’s inflation rate in December 2018 slowed down to 7.0 percent.
Compared to the 1.6 percent inflation rate in the same period last year, the December 2018
rate was still higher by 5.4 percentage points.
The movement was attributed to the Inflation Rate by two Commodity/Service
groups; Recreation and Culture (from 3.1 percent to 3.3 percent) and Restaurants and
Miscellaneous Goods and Services (from 5.9 percent to 6.0 percent).
The heavily weighted Food and Non-Alcoholic Beverages went down (from 11.5
percent to 8.1 percent) along with most of the commodity/service groups such as Alcoholic
Beverages and Tobacco (from 24.7 percent to 24.1 percent), Clothing and Footwear (from
6.3 percent to 5.8 percent), Housing, Water, Electricity, Gas and Other Fuels (from 7.6
percent to 7.1 percent), Furnishings, Household Equipment and Routine Maintenance of the
House (from 9.9 percent to 9.3 percent), Health (from 16.4 percent to 16.0 percent),
Transport (from 5.2 percent to 1.7 percent).
Communication and Education remained the same at 1.7 percent and -22.0 percent,
respectively.
Inflation Rate in Camarines Sur is still highest in the region at 8.9 percent. Camarines
Norte and Masbate also posted a higher Inflation Rate than of the region at 7.4 percent and
7.5 percent, respectively. The rest of the provinces posted lower Inflation Rate than of the
Region. Albay at 5.4 percent, Catanduanes at 5.6 percent, and Sorsogon pegged at 4.7
percent.
 
PRICE SITUATION: MONTH-ON-MONTH
On a Month-on-month bases, the general prices of consumer items went down by
-0.7 percent.
The decrease was observed on Food and Non-Alcoholic Beverages (from -1.0
percent to -1.4 percent), Alcoholic Beverages and Tobacco (from 3.8 percent to 1.2 percent),
Furnishings, Household Equipment and Routine Maintenance of the House (from 1.4
percent to 0.2 percent), Health (from 0.7 percent to 0.2 percent), Transport (from -1.0
percent to -2.2 percent), and Restaurants and Miscellaneous Goods and Services (from 0.4
percent to 0.3 percent).
On the other hand, prices went up on the following Commodity/Service Groups:
Housing, Water, Electricity, Gas and Other Fuels (from -0.1 percent to 0.0 percent) and
Recreation and Culture (from 0.2 percent to 0.4 percent).
Clothing and Footwear, Communication, and Education remained at 0.6 percent, 0.0
percent and 0.0 percent respectively.
With all the observed price changes in CPI, the Purchasing Power of Peso in Bicol
was observed at 0.83. Sorsogon stood at 0.89 while Camarines Norte and Camarines Sur
at 0.81. Albay at 0.84, Catanduanes at 0.85, and Masbate at 0.83.
 
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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