Friday, March 16, 2018
PRICE SITUATION: YEAR-ON-YEAR
The Bicol Region’s inflation rate in February 2018 went up to 6.2 percent. Compared to the 3.9 percent inflation rate in the same period last year, the February 2018 rate was higher by 2.3 percentage points.
The increment was attributed to the Inflation Rate by the Alcoholic Beverages and Tobacco (from 23.6 percent to 30.1 percent). The increase was also observed in almost all of the Commodity/Service group; Health (from 2.9 percent to 8.4 percent), Furnishings, Household Equipment and Routine Maintenance of the House (from 2.6 percent to 6.7 percent), Clothing and Footwear (from 2.8 percent to 5.1 percent), Restaurants and Miscellaneous Goods and Services (from 3.6 percent to 6.7 percent), Recreation and Culture (from 1.0 percent to 1.6 percent), Transport (from 2.3 percent to 2.8 percent), and Communication (from 1.3 percent to 1.4 percent).
Meanwhile, decrement was noted on the following Commodity/Service Groups; Food and Non- Alcoholic Beverages (from 6.2 percent to 6.0 percent) and Housing, Water, Electricity, Gas and Other Fuels (from 4.9 percent to 4.7 percent)
Camarines Sur’s Inflation rate reached at 6.4 percent, Masbate at 6.5 percent while Camarines Norte is pegged at 6.2 percent. Catanduanes has the lowest Inflation rate at 5.4 percent. Albay and Sorsogon lingers at 6.0 percent and 5.5 percent respectively.
PRICE SITUATION: MONTH-ON-MONTH
On a month-on-month basis, the general prices of consumer items went down at 1.1 percent. The decrease was expressively attributed to the effect of the decrease on the prices of Alcoholic Beverages and Tobacco (from 16.8 percent to 6.0 percent), in the same manner, notable decline was also observed with the following Commodity/Service groups; Health (from 5.3 percent to 1.4 percent), Food and Non-Alcoholic Beverages (from 2.2 percent to 0.6 percent), Housing, Water, Electricity, Gas and Other Fuels (from 1.2 percent to 0.2 percent), and Communication (from 0.3 percent to 0.2 percent)
On the other hand, increment was noted in Clothing and Footwear (from 0.4 percent to 2.5 percent), Transport (from -0.9 percent to 0.7 percent), Restaurants and Miscellaneous Goods and Service (from 0.5 percent to 3.6 percent), Furnishings, Household Equipment and Routine Maintenance of the House (from 2.0 percent to 2.4 percent), and Recreation and Culture (from 0.1 percent to 0.6 percent).
Only Education among the Commodity/Service group leveled at 0.0 percent for this month.
With all the observed price changes in CPI, the Purchasing Power of Peso in Bicol is pegged at 0.62. Masbate’s PPP was at 0.59 while Albay was at 0.66. Camarines Sur and Catanduanes were all pegged at 0.61 while Sorsogon and Camarines Norte were with same as with the region’s PPP at 0.62.
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
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