PRICE SITUATION: YEAR-ON-YEAR
The Bicol Region’s inflation rate in July 2021 slightly accelerated to 6.5% from 6.3% in the previous month. Inflation in July a year ago was lower at 4.2%.
The increase in inflation in July 2021 was attributed to the Inflation Rates of these Commodity/Service groups: Food and Non-Alcoholic Beverages (6.6% from 6.1%), Clothing and Footwear (4.8% from 4.6%), and Housing, Water, Electricity, Gas and Other Fuels (5.4% from 4.1%)
Alcoholic Beverages and Tobacco (14.0% from 14.6%), Furnishings and Household Equipment and Routine Maintenance of the House (4.1% from 4.2%), Transport (13.0% from 15.7%), and Restaurants and Miscellaneous Goods and Services (7.4% from 8.3%) were the commodity groups that went down.
Health (2.2%), Communication (-0.1%), Recreation and Culture (1.7%), and Education (0.1%) retained its previous month’s annual growth rates.
Inflation Rate in Camarines Sur is the highest in the region at 7.6%, followed by Catanduanes and Masbate, both at 7.1%, and Camarines Norte at 6.9%. Albay and Sorsogon posted lower than that of the region, both at 5.1%.
PRICE SITUATION: MONTH-ON-MONTH
On a month-on-month basis, the inflation rate went down to 0.1% from 0.2% last month.
The movement was due to the decrease in inflation rate of the heavily-weighted Food and Non-Alcoholic Beverages (-0.4% from 0.1%).
Clothing and Footwear (0.5% from 0.2%), Furnishings, Household Equipment and Routine Maintenance of the House (0.4% from 0.1%), Health (0.7% from 0.0%), Transport (0.6% from 0.0%), Recreation and Culture (0.2% from 0.0%), and Restaurants and Miscellaneous Goods and Services (0.4% from 0.1%) were the commodity groups that went up.
Alcoholic Beverages and Tobacco (0.1%), Housing, Water, Electricity, Gas and Other Fuels (1.1%), Communication (0.0%), and Education (0.0 %) retained its previous month’s rate.
With all the observed price changes in CPI, the Purchasing Power of Peso in Bicol declined to 0.74. Albay stood at 0.74, Camarines Norte at 0.72, Camarines Sur at 0.73, Catanduanes at 0.75, Masbate at 0.75, and Sorsogon at 0.81.
DEFINITIONS AND CONCEPTS
Consumer 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 Consumer 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.