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 3.5 percent
- Central Visayas’ inflation rate further decelerated to 3.5 percent in February 2019. The inflation was lower compared to last year of the same period at 3.8 percent. In the previous month, inflation was posted at 4.4 percent (Table A). Inflation rate during the month was fourteenth to the highest since January 2015 (Table C).
Lower annual increases in the indices of the following commodity groups during the month also contributed to the downtrend:
Food and Non-Alcoholic Beverages, 5.6%
Alcoholic Beverages and Tobacco, 11.4%
Clothing and Footwear, 0.7%;
Furnishing, Household Equipment and Routine Maintenance of the House, 9.0%
Health, 3.2%;
Transport, -4.2%
Meanwhile, higher annual mark-ups were exhibited in the indices of the following commodity groups:
Housing, Water, Electricity, Gas, and Other Fuels, 3.0%
Restaurant and Miscellaneous Goods and Services, 2.1%
The rest of the commodity groups maintained their previous month’s rate (Table B).
February 2019 CPI in Central Visayas was recorded 122.8
The CPI in Central Visayas was recorded at 122.8 in January 2019. A decline was noted from previous month which was at 122.9. In February 2018, it was at 118.7 and steadily increased in the succeeding months until October 2018. A decline of the CPI was noted in the months of November and December 2018 and increase in January 2019
Higher annual rate was noted in the indices of all items from February and January 2019 compared to February and January 2018 except for Education while Transport has declined in February 2019 compared to February 2018(Table D).
Purchasing Power of Peso (PPP) was recorded at 0.81 in February 2019
In February 2018, PPP of Central Visayas was recorded at 0.84. It steadily decreased until April 2018 at 0.82 and remain constant until July 2018. In August 2018, PPP decreased to 0.81 and remain constant until November 2018. In December 2018, the PPP inclined to 0.82 and declined to 0.81 in January 2019 and remain constant for the month of February.
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.
(SGD.) ARIEL E. FLORENDO
Regional Director
