Wednesday, November 1, 2017
PRICE SITUATION: Year-on-Year
Bicol Region’s inflation rate increased to 4.2 percent in November 2017. This is about 1.7 percentage point higher than the rate posted a year ago of the same reference month.
The year-on-year price situation was up to 3.95 percent change in all item index due to the notable increase in the heavily-weighted food and non-alcoholic beverages with 5.04 percent change (from 166.7 to 175.1), alcoholic beverages & tobacco with 4.77 percent (from 178.3 to 186.8). The same trend was observed for the Non-food index with 2.57 percent increment (from 132.4 to 135.8). This was greatly attributed to significant increase in household maintenance and appliances and personal services.
PRICE SITUATION: Month-on-Month
There was a slight increase in the heavily-weighted food items in this month of November. From the previous month indices, food and non-alcoholic beverages showed a positive percent change (0.29). Fish and vegetables made a significant increase 1.13 percent and 2.55 percent respectively. On the other hand, fruits manifested a decrease 1.48 percent.
Among non-food commodity group, a 0.37 percent change in the prices was observed. Clothing and footwear (from 135.3 to 135.8); housing, water electricity, gas and other fuels (from 129.6 to 130.0); furnishings, household equipment and routine maintenance of the house (from 141.8 to 142.0); health (from 133.2 to 133.3); transport (from 144.5 to 146.4); recreation and culture (from 113.1 to 113.2); restaurant and miscellaneous goods and services (from 150.0 to 150.2).
Communication and Education remained at 95.1 and 148.1 for this month.
With all these observed price changes reflected in CPI Index Table in the succeeding pages, the purchasing power of the peso (PPP) in Bicol slightly depleted at 0.64 compared to last’s months 0.65.
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.