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 2.4 percent
- Inflation in Central Visayas for April 2020 settled at 2.4 which was slower than the 2.9 percent annual increase in March 2020. In April 2019, inflation was lower at 1.3 percent (Table A).
- Contributing to the downtrend of the inflation in April 2020 was the further decrease in the annual rate of Housing, Water, Electricity, Gas, and Other Fuels index at -0.3 percent and index of transport at -2.6 percent.
- Inflation in the following commodity groups were higher during the month:
- Food and Non-Alcoholic Beverages, 4.3%
- Health, 5.8%;
- Constant inflation from the previous month were carried over by the following commodity groups:
- Alcoholic Beverages and Tobacco, 13.6%;
- Clothing and Footwear, 0.6%;
- Furnishing, Household Equipment and Routine Maintenance
- Communication, 0.3%;
- Recreation and Culture, 0.3%;
- Education, 3.2%;
- Restaurant and Miscellaneous Goods and Services, 0.9%
April 2020 CPI in Central Visayas was recorded 125.9
- April 2020 CPI in Central Visayas was recorded at 125.9. A decline was observed from the previous month which was at 126.1. There was an increasing movement of the CPI from April 2019 to April 2020 except for the months of October 2019 and February and April 2020 which posted a dropped in the movement of CPI.
- Higher annual rate was noted in the indices of each commodity group from March and April 2020 compared to March and April 2019 except for Housing, Water, Electricity, Gas, and Other Fuels and Transport which posted a decrease in the indices in April 2020. (Table D).
Purchasing Power of Peso (PPP) was recorded at 0.79 in April 2020
- Purchasing Power of Peso in Central Visayas was recorded at 0.79 in April 2020. Movement of PPP in April 2019 to April 2020 exhibited a downtrend movement from 0.81 to 0.79. The PPP from April 2019 at 0.81 remained constant until October 2019. A decline was recorded from 0.81 to 0.80 in the months of November and December 2019. It further decelerated to 0.79 in the start of 2020 and remained constant until April 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