Starting March 2018, the Philippine Statistics Authority (PSA) released the rebased CPI series as announced in the press release number 2018-031 dated 22 February 2018. The CPI series for July 2018 onwards shall be 2012-based.
Year on Year Inflation rate in Central Visayas was recorded at 2.3 percent
- The inflation in Central Visayas exhibited a slower pace for July 2020 at 2.3 percent which was lower than the 2.7 percent annual increase in June 2020. In July 2019, inflation was at 1.1 percent (Table A).
- The downtrend in the overall inflation was mainly driven by the decrease in the inflation of the Food and Non-Alcoholic Beverages index at 3.0 percent during the month from 4.6 percent in June 2020. The downtrend in the inflation was also brought about by the decrease in the indices of the following commodity groups during the month:
- Clothing and Footwear, 0.5%;
- Housing, Water, Electricity, Gas, and Other Fuels, -1.1%;
- Health, 5.0%;
- Education, 0.0%
- Meanwhile, higher annual increase was noted in the indices of following commodity groups:
- Alcoholic Beverages and Tobacco, 13.9%;
- Transport, 4.3%
- Indices of the rest of the commodity groups retained their previous month’s annual growth rates:
- Furnishing, Household Equipment and Routine Maintenance of the House; 6.9%;
- Communication, 0.2%;
- Recreation and Culture, 0.3%;
- Restaurant and Miscellaneous Goods and Services, 1.3%
July 2020 CPI in Central Visayas was recorded 126.7
- The CPI for Central Visayas was recorded at 126.7 for July 2020 which was lower than the 126.8 from the previous month. An increasing movement of the CPI was recorded from July 2019 at 123.9 to July 2020 at 126.7. The month of October 2019 recorded the lowest CPI while June 2020 recorded the highest CPI from the series.
- Higher annual rate was noted in the indices of each commodity group from June and July 2020 compared to June and July 2019 except for Housing, Water, Electricity, Gas, and Other Fuels which posted a decrease in the indices in June and July 2020, Transport which posted a decrease in index in June 2020 and Education which posted a constant index in July 2019 and July 2020 (Table D).
Purchasing Power of Peso (PPP) was recorded at 0.79 in July 2020
- Purchasing Power of Peso in Central Visayas was recorded at 0.79 in July 2020. A downtrend movement of the PPP was recorded from July 2019 to July 2020. In July 2019, PPP was at 0.81 and remained constant until October 2019. A decline was recorded from 0.81 to 0.80 in the months of November and December 2019. Starting January 2020, the PPP further declined to 0.79 and remained constant until July 2020.
The Philippine Statistics Authority generates and announces the monthly Consumer Price Index (CPI) based on a nationwide survey of prices for a given basket of goods and services. Two important indicators, the inflation rate and purchasing power of the peso (PPP), are derived from the CPI which are important in monitoring price stability and the value of the country’s currency.
The CPI is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.
Retail Price is the price at which a commodity is sold for spot in small quantities for consumption.
Base Period/Base Year is the period, usually a year, at which the index number is set to 100. It is the reference point of the index number series.
Market Basket is a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.
Weight is a value attached to a commodity or ground of commodities to indicate the relative importance of that commodity or group of commodities in the market basket.
Inflation Rate is equivalent to a decline in the purchasing power of the peso. It is the change in the CPI over a specific period of time (usually a month or a year). That is,
CPI1 - is the CPI in the previous period
CPI2 - is the CPI in the current period
The Purchasing Power of the Peso (PPP) is a measure of the real value of the peso in a given period relative to a chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100. That is,
Headline Inflation is the rate of change in the weighted average prices of all goods and services in the CPI basket.
(SDG.) ARIEL E. FLORENDO