Inflation rate in Central Visayas was recorded at 3.0 percent

The inflation rate in Central Visayas was recorded at 3.0 percent in November 2017 and remained constant in December 2017 (Table A). The previous year’s rate showed a decrease of 3.0 percent from 3.2 in November 2016. (Table C).

The index for Food and Non-Alcoholic Beverages, Housing, Water, Electricity, Gas, and Other Fuels and Health increased to 3.7 percent, 4.9 percent and 1.1 percent respectively. Five commodity groups have lower indices including Alcoholic Beverages and Tobacco (1.8%); Furnishing, Household Equipment and Routine Maintenance of the House (1.4%); and Transport (-0.7%). The rest of the commodities retained their previous month’s rates. (Table B)

Central Visayas CPI’s recorded an increase of 154.9 compared to the previous month

The consumer price index in Central Visayas was recorded at 154.9 in December 2017. An increment was noted from previous month which was at 154.4. In December 2016, it was at 149.9 and steadily increased in the succeeding months.

Higher annual rate was noted in the indices of all items by commodity groups from December 2016 to December 2017. (Table D)

Purchasing Power of Peso (PPP) remains stable at 0.65 in December 2017

For the past four months, the PPP in Central Visayas was steady at 0.65. At the start of 2017 it was at 0.66 then remained constant until July 2017.

TECHNICAL NOTES

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 Consumer Price Index (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,

where:

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.

Approved by:

(SGD.) Engr. ARIEL E. FLORENDO
Regional Director