Thursday, July 5, 2018
PRICE SITUATION: YEAR-ON-YEAR
The Bicol Region’s inflation rate in June 2018 went up to 6.9 percent. Compared to
the 0.9 percent inflation rate in the same period last year, the June 2018 rate was higher by
6.0 percentage points.
The increase was attributed to the Inflation Rate by the Food and Non-Alcoholic
Beverages (from 9.1 percent to 9.6 percent), Alcoholic Beverages and Tobacco (from 16.6
percent to 16.9 percent), Housing, Water, Electricity, Gas and Other Fuels (from 2.4 percent
to 3.6 percent), Health (from 12.0 percent to 12.5 percent), Transport (from 2.9 percent to
4.4 percent), Recreation and Culture (from 1.2 percent to 1.3 percent) and Education (from
0.5 percent to 1.1 percent).
Meanwhile, decrease was observed on Communication (from 1.7 percent to 1.4
percent) and Restaurants and Miscellaneous Goods and Services (from 3.2 percent to 3.0
Furnishings, Household Equipment and Routine Maintenance of the Household
remained at 5.7 percent.
Inflation Rate in Masbate swelled to 8.8 percent followed by Albay at 8.1 percent
while Sorsogon eased at 4.8 percent. Camarines Norte is at 7.6 percent, Camarines Sur is
at 6.5 percent while Catanduanes is at 5.7 percent.
PRICE SITUATION: MONTH-ON-MONTH
On a Month-on-month bases, the general prices of consumer items remained at 0.3
Noted increase was observed only on the prices of Food and Non-Alcoholic
Beverages (from 0.1 percent to 0.6 percent), Transport (from 0.8 percent to 1.6 percent)
and Education (from 0.0 percent to 1.1 percent)
On the other hand, prices went down on the following Commodity/Service Groups;
Alcoholic Beverages and Tobacco (from 0.7 percent to 0.4 percent), Clothing and Footwear
(from 0.4 percent to 0.2 percent), Housing, Water, Electricity, Gas and other Fuels (from 1.0
percent to -0.6 percent), Communication (from 0.1 percent to -0.3 percent) and Restaurants
and Miscellaneous Goods and Services (from 0.9 percent to 0.1 percent).
Furnishings, Households Equipment and Routine Maintenance of the House
persisted at 0.1 percent, Health and Recreation and Culture also remained at 0.5 percent
and 0.2 percent respectively.
With all the observed price changes in CPI, the Purchasing Power of Peso in Bicol
remained at 0.85. Sorsogon PPP is at 0.90 while Camarines Norte and Masbate were at
0.83. Albay and Camarines Sur at 0.85 while Catanduanes pegged at 0.86.
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