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

Reference Number: 

2018- 015

Release Date: 

Monday, August 13, 2018

PRICE SITUATION: YEAR-ON-YEAR

The Bicol Region’s inflation rate in July 2018 surged to 7.4 percent. Compared to the 0.9 percent inflation rate in the same period last year, the July 2018 rate was higher by 6.5 percentage points. The escalation was attributed to the Inflation Rate by the Food and Non-Alcoholic Beverages (from 9.6 percent to 10.9 percent), Alcoholic Beverages and Tobacco (from 16.9 percent to 17.4 percent), Clothing and Footwear (from 3.8 percent to 4.3 percent), Housing, Water, Electricity, Gas and Other Fuels (from 3.6 percent to 4.4 percent), Furnishings, Household Equipment and Routine Maintenance of the House (from 5.7 percent to 6.5 percent), Health (from 12.5 percent to 13.3 percent), Transport (from 4.4 percent to 5.3 percent), Communication (from 1.4 percent to 1.7 percent), Recreation and Culture (from 1.3 percent to 1.7 percent) and Restaurants and Miscellaneous Goods and Services (from 3.0 percent to 4.1 percent). Education was the only Service group that went down from 1.1 percent to -22.4 percent. Inflation Rate in Camarines Norte increased to 9.1 percent. On the other hand, Masbate and Albay slowed down to 8.6 percent and 7.7 percent, respectively. Sorsogon is at 5.6 percent and Camarines Sur and Catanduanes were at 7.0 percent.

PRICE SITUATION: MONTH-ON-MONTH

On a Month-on-month bases, the general prices of consumer items persisted at 0.3 percent. Notable decrease was noted on the prices of Education (from 1.1 percent to -23.2 percent) and Transport (from 1.6 percent to -0.7 percent). On the other hand, prices went up on the following Commodity/Service Groups; Food and Non-Alcoholic Beverages (from 0.6 percent to 1.0 percent), Clothing and Footwear (from 0.2 percent to 0.5 percent), Housing, Water, Electricity, Gas and Other Fuels (from -0.6 percent to 0.9 percent), Furnishings, Household Equipment and Routine Maintenance of the House (from 0.1 percent to 1.1 percent), Health (from 0.5 percent to 0.7 percent), Communication (from -0.3 percent to 0.3 percent), Recreation and Culture (from 0.2 percent to 0.4 percent) and Restaurants and Miscellaneous Goods and Services (from 0.1 percent to 1.1 percent). Alcoholic Beverages and Tobacco remained at 0.4 percent. With all the observed price changes in CPI, the Purchasing Power of Peso in Bicol managed at 0.85. Sorsogon is stronger than the region’s PPP at 0.90 while Camarines Norte slipped at 0.82. Albay and Catanduanes pegged at 0.85. Camarines Sur and Masbate were at 0.84 and 0.83, 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 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.
 
Noted by:
 
CYNTHIA L. PERDIZ
Regional Director

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