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June 2018 Consumer Price Index (CPI), Inflation Rate (IR), Purchasing Power of Peso (PPP) of Central Visayas

Release Date:
Reference Number: 2018-SR07-011

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. Data users can expect two sets of the CPI as the new series shall be issued simultaneously with the 2006-based series until June 2018. The CPI series for July 2018 onwards shall be 2012-based.

Year on Year Inflation rate in Central Visayas was recorded at 6.0 percent

  • The inflation in Central Visayas further increased by 6.4 percent in June 2018 compared to last year of the same period at 2.0 percent. Inflation in the previous month was pegged at 6.0 percent. (Table A). Inflation during the month was highest since January 2014 (Table C).

Table A. Year-on-Year Inflation Rates, All Items
(2012 = 100)
Area
June
May
June
2018
2018
2017
Central Visayas
6.4
6.0
2.0
 
  • It was primarily brought about by higher annual rate posted in food and non-alcoholic beverages index at 8.5 percent. Faster annual increments were also registered in the indices of the following commodity groups:

    • Alcoholic Beverages and Tobacco (20.6%);

    • Clothing and Footwear (1.4%);

    • Health (3.8%)

    • Transport (7.9%)

  • The other commodity groups had slower annual gains except for Furnishing, Household Equipment and Routine Maintenance of the House index, Communication index and Recreation and Culture index whose rate remained at 7.6 percent, 0.1 percent and 0.8 percent respectively (Table B).

Table B. Year-on-Year Inflation Rates in Central Visayas by Commodity Group,  June 2018 and May 2018
(2012 = 100)
Commodity Group
Current
Previous
All Items
6.4
6.0
Food and Non-Alcoholic Beverages
8.5
7.8
Alcoholic Beverages and Tobacco
20.6
20.5
Clothing and Footwear
1.4
1.3
Housing, Water, Electricity, Gas, and Other Fuels
5.0
5.1
Furnishing, Household Equipment and Routine Maintenance of the House
7.6
7.6
Health
3.8
3.0
Transport
7.9
7.1
Communication
0.1
0.1
Recreation and Culture
0.8
0.8
Education
0.2
1.6
Restaurant and Miscellaneous Goods and Services
2.1
2.2
 
Table C. Year-on-Year Inflation Rates in Central Visayas, All Items
January 2014 – June 2018 
(2012=100)
 
 
 
 
YEAR
 
MONTH
2014
2015
2016
2017
2018
 
January
4.8
2.9
1.1
2.5
3.0
 
February
4.2
2.6
1.1
2.8
3.8
 
March
4.4
2.5
1.2
2.2
5.2
 
April
4.8
1.9
1.5
2.3
5.8
 
May
5.2
1.6
1.8
2.0
6.0
 
June
5.0
1.1
2.1
2.0
6.4
 
July
5.1
0.6
2.1
2.2
 
 
August
4.7
0.1
2.5
2.6
 
 
September
4.6
0.4
1.8
3.1
 
 
October
4.9
0.0
2.1
3.1
 
 
November
4.6
0.0
2.1
2.7
 
 
December
3.6
0.9
2.0
2.4
 
 
Average
4.7
1.2
1.8
2.5

 

 
 

Central Visayas CPI’s recorded an increase of 122.1 compared to the previous month

  • The CPI in Central Visayas was recorded at 122.1 in June 2018. An increment was noted from previous month which was at 121.6. In May 2017, it was at 114.8 and steadily increased until October 2017. A decrease was recorded from October 2017 to November 2017 and then steadily increased in the succeeding months.

  

  • Higher annual rate was noted in the indices of all items by commodity groups from May 2017 to June 2018 (Table D).​

Table D.  Monthly Consumer Price Index for All Income Households in Central Visayas, by Commodity Group
June and May 2018 and 2017
(2012 = 100)
COMMODITY GROUP
JUNE
MAY
2018
2017
2018
2017
All Items
122.1
114.8
121.6
114.7
Food and Non-Alcoholic Beverages
127.9
117.9
127.0
117.8
Alcoholic Beverages and Tobacco
183.1
151.8
183.1
152.0
Clothing and Footwear
120.7
119.0
120.6
119.0
Housing, Water, Electricity, Gas, and Other Fuels
123.2
117.3
122.8
116.8
Furnishing, Household Equipment and Routine Maintenance of the House
122.9
114.2
122.8
114.1
Health
109.3
105.3
108.5
105.3
Transport
111.5
103.3
111.5
104.1
Communication
101.6
101.5
101.6
101.5
Recreation and Culture
104.2
103.4
104.2
103.4
Education
130.0
129.7
129.7
127.6
Restaurant and Miscellaneous Goods and Services
107.4
105.2
107.4
105.1
 

Purchasing Power of Peso (PPP) was recorded at 0.82 in June 2018

  • June 2017, PPP of Central Visayas was recorded at 0.87 and remained constant until August of the same year. From September 2017, it was constant at 0.86 until December 2017 and dropped to 0.85 in January 2018. From January 2018, PPP steadily decreased until April 2018 and retain at 0.82 until June 2018 (Figure 2).

     

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 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

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