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

Reference Number: 

2018-003

Release Date: 

Thursday, February 8, 2018
PRICE SITUATION: YEAR-ON-YEAR
 
The Bicol Region’s inflation rate in January 2018 went up to 5.4 percent. Compared
to the 3.1 percent inflation rate in the same period last year, the January 2018 rate was
higher by 2.3 percentage points.
The upsurge was ascribed to the Inflation Rate by the Alcoholic Beverages and
Tobacco (from 6.2 percent to 23.6 percent). Likewise, the increase was also noted in almost
all of the Commodity/Service group; Food and Non-Alcoholic Beverages (from 5.0 percent
to 6.2 percent), Clothing and Footwear (2.5 percent to 2.8 percent), Housing, Water ,
Electricity, Gas and Other Fuels (from 3.9 percent to 4.9 percent), Furnishings, Household
Equipment and Routine Maintenance of the House (from 2.5 percent to 2.6 percent), Health
(from 1.8 percent to 2.9 percent), Transport (0.7 percent to 2.3 percent), Communication
(from 1.2 percent to 1.3 percent) and Restaurants and Miscellaneous Goods and Services
(from 3.1 percent to 3.6 percent).
Recreation and Culture persisted at 1.0 percent, similarly with Education which is
pegged at 0.5 percent.
Camarines Sur has the highest Inflation rate in the region at 6.5 percent, followed by
Camarines Norte at 5.5 percent. Masbate at 5.2 percent almost doubled their Inflation Rate
from last month’s while Catanduanes surged to 5.1 percent. Sorsogon and Albay have the
lowest Inflation Rate at 4.7 percent and 4.5 percent respectively.
 
 
PRICE SITUATION: MONTH-ON-MONTH
 
On a month-on-month basis, the general prices of consumer items went up at 1.9
percent. The increase was significantly attributed to the effect of the increase on the prices
of Alcoholic Beverages and Tobacco (from 1.4 percent to 16.8 percent), on the same
manner increase was noted on Food and Non-Alcoholic Beverages (from 0.6 percent to 2.2
percent), Housing, Water, Electricity, Gas and Other Fuels (from 0.5 percent to 1.2 percent),
Health (from 0.2 percent to 1.2 percent), Restaurants and Miscellaneous Goods and
Services (from 0.1 percent to 0.5 percent) and Communication (from 0.0 percent to 0.3
percent).
Meanwhile, the Commodity/Service Groups that went down are Furnishings,
Household Equipment and Routine Maintenance of the House (from 0.9 percent to 0.3
percent), Transport (from 1.2 percent to -0.9 percent) and Recreation and Culture (from 0.2
percent to 0.1 percent).
The Commodity/Service Group that remain the same from the previous month were
Clothing and Footwear (0.4 percent) and Education (0.0 percent)
With all the noted price changes in CPI, the Purchasing Power of Peso in Bicol
decreased to 0.63. Masbate’s PPP was at 0.60 while Albay was at 0.67. Camarines Sur,
Camarines Norte and Catanduanes all pegged at 0.62. Sorsogon was with same level as
the region’s PPP at 0.63.


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.
 

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