Inflation rate in Central Visayas remained at 3.0 percent
The inflation rate in Central Visayas was recorded at 2.9 percent in October 2017 and increased by 3.0 percent in November 2017 (Table A).
The previous year’s rate showed a decrease of 3.2 percent from 3.4 in October 2016. (Table C).
The index for Housing, Water, Electricity, Gas, and Other Fuels and Furnishing, Household Equipment and Routine Maintenance of the House increased to 4.8 percent and 1.5 percent respectively. The rest of the commodity groups retained their previous month’s rates. (Table B)
Central Visayas CPI’s recorded an increase of 154.4 compared to the previous month
The consumer price index in Central Visayas was recorded at 154.4 in November 2017, a 0.39 percent increment over the previous month’s price index at 153.8. In November 2016, it was at 149.5 and steadily increased in the succeeding months.
Higher annual rate was noted in the indices of all items by commodity groups from November 2016 to November 2017. (Table D)
Purchasing Power of Peso (PPP) remains stable at 0.65 in November 2017
For the past three months, the PPP in Central Visayas stay put 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
