Inflation rate in Camarines Sur decreases to 5.1 percent in December 2017

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1 Inflation Rate (in Percent) [ Inflation rate in Camarines Sur decreases to 5.1 percent in ember Date of Release: January 11, 2018 Reference No The provincial headline inflation rate in ember decreased to 5.1 percent. It was the lowest since April. Although it was increasing since July at 5.7 percent, 5.9 percent in August, and was highest at 6.8 percent in September, it significantly declined to 5.3 percent in October and slightly increased to 5.4 percent in November. Figure 1. Year-on-Year Headline Inflation Rates in Camarines Sur, All Items: September ember (2006=100) Sep Oct Nov Jan 4.3 Feb 4.6 Mar 6.4 Apr 6.3 May Month/Year 6.1 Jun 5.7 Jul 5.9 Aug 6.8 Sept 5.3 Oct 5.4 Nov 5.1 Price Situation: Year- on-year On a Year-on-Year comparison, commodity groups under Food and Non-Alcoholic Beverages reflected the highest inflation rate of 7.05 percent in ember from index points in ember to index points in ember. Housing, Water, Electricity, Gas and other Fuels also increased to 4.56 percent in ember from posted index points in ember to index points in ember. Prices of commodities for Restaurant, Miscellaneous Goods and Services, Alcoholic Beverages and Tobacco, Clothing and Footwear and Communication also PSA Building #774 Panganiban Drive, Naga City (054) / psa_camsur@yahoo.com.ph Page 1

2 increased as shown in Table 1. Prices of commodities for Transport and Recreation and Culture, tend to increase at a slower rate than other commodity groups every year. Price Situation: Month-on-Month Food and Non-Alcoholic Beverages decreased to 0.28 percent in ember from 0.79 percent in November. Alcoholic Beverages and Tobacco also decreased to 0.00 percent in ember from 0.74 percent in November. Across Non-Food Groups, commodities under Furnishings, Household Equipment and Routine Maintenance of the House posted the biggest increase in ember with 1.22 percent compared with November posted points of 0.23 percent. Restaurant, Miscellaneous Goods and Services also increased to 0.17 percent in ember from 0.00 percent in November. Prices of commodities for Clothing and Footwear went down to 0.71 percent in ember from 1.43 percent in November. Housing, Water, Electricity, Gas and other Fuels also went down to negative 0.39 percent in ember from negative 0.31 percent in November. Transport commodities decreased to 2.13 percent in ember from 3.36 percent in November. The rest of the commodity groups did not show significant changes in November. Table 1. Headline Inflation Rates in Camarines Sur, by Commodity Group (Year-on-Year and Monthon-Month): ember ember ; November ember (2006=100) Commodity Group Year-on-Year Percent Change Year-on-Year Month-on-Month Nov Food and Non-Alcoholic Beverages Alcoholic Beverages and Tobacco Clothing and Footwear Housing, Water, Electricity, Gas and other Fuels Furnishings, Household Equipment and Routine Maintenance of the House Health Transport Communication Recreation and Culture Education Restaurant, Miscellaneous Goods and Services Inflation Rate Purchasing Power of Peso CPI (All Items) PSA Building #774 Panganiban Drive, Naga City (054) / psa_camsur@yahoo.com.ph Page 2

3 Commodity Group Commodity Group Figure 2. Consumer Price Index for All Income Households in Camarines Sur: Year-on-Year, ember and ember (2006 = 100) XI. RESTAURANTS AND MISCELLANEOUS X. EDUCATION IX. RECREATION AND CULTURE VIII. COMMUNICATION VII. TRANSPORT VI. HEALTH V. FURNISHINGS, HOUSEHOLD EQUIPMENT IV. HOUSING, WATER, ELECTRICITY, GAS III. CLOTHING AND FOOTWEAR II. ALCOHOLIC BEVERAGES AND TOBACCO I. FOOD AND NON-ALCHOLIC BEVERAGES Consumer Price Index Figure 3. Consumer Price Index for All Income Households in Camarines Sur: Month-on-Month, November ember (2006 = 100) XI. RESTAURANTS AND MISCELLANEOUS X. EDUCATION IX. RECREATION AND CULTURE VIII. COMMUNICATION VII. TRANSPORT VI. HEALTH V. FURNISHINGS, HOUSEHOLD EQUIPMENT IV. HOUSING, WATER, ELECTRICITY, GAS III. CLOTHING AND FOOTWEAR II. ALCOHOLIC BEVERAGES AND TOBACCO I. FOOD AND NON-ALCHOLIC BEVERAGES Nov Consumer Price Index PSA Building #774 Panganiban Drive, Naga City (054) / psa_camsur@yahoo.com.ph Page 3

4 PPP (in PESO) As a result of the price trends cited above, the Purchasing Power of Peso (PPP) of the province of Camarines Sur remained at In Camarines Sur, Purchasing Power of Peso for ember = (1/159.6)*100 = 0.63 This means that a peso in 2006 is only worth 63 centavos in ember, or you may need PhP159.6 to purchase the same volume of goods and services worth P in Purchasing Power of Peso drops to PhP 0.64 in Purchasing Power of Peso (PPP) is inversely related to inflation rate. Thus, as the inflation rate increases, PPP declines. Figure 4, shows that in Camarines Sur, PPP has been decreasing on the average of annually from 1997 to. The PPP in was This implies that the PhP 1.00 in 2006 as the base year, values only PhP 0.64 in and was worth PhP 1.62 in Figure 4. Purchasing Power of Peso in Camarines Sur: (2006=100) Year PSA Building #774 Panganiban Drive, Naga City (054) / psa_camsur@yahoo.com.ph Page 4

5 TECHNICAL NOTES CONSUMER PRICE INDEX (CPI) The CPI is a measure of the changes in the average price level of goods and services that most people buy for their day-to-day consumption. It measures the composite change in the consumer prices of various commodities over time. COMPONENTS OF CPI: A. Base Period The reference date or base period is the benchmark or reference date or period at which the index is taken as equal to 100. B. Market Basket A sample of the thousands of varieties of goods purchased for consumption and services availed by the households in the country selected to represent the composite price behaviour of all goods and services purchased by consumers. C. Weighting System The weighting pattern uses the expenditures on various consumer items purchased by households as proportion to total expenditure. D. Formula The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre s formula with a fixed base year period (2006) weights. Inflation rate The inflation rate is the annual or monthly rate of change of the CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of money. Headline Inflation rate The headline inflation rate refers to the rate of change in the CPI, a measure of the average standard basket of goods and services consumed by a typical family. Year-On-Year Inflation Rate Year-On-Year Inflation Rate is the annual percentage change of CPI. For example, the percentage change of CPI between September and Septemberl. Month-On-Month Inflation Rate Month-On-Month Inflation Rate is the monthly percentage change of CPI. For example, the percentage changes of CPI between August and September. Purchasing Power of Peso (PPP) The purchasing power of peso (PPP) shows how much peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100. For example, the PhP 1.00 in 2006 is valued only at PhP 0.63 in ember. E. Geographic Coverage CPI values are computed at the national, regional, and provincial levels, and for selected cities. PSA Building #774 Panganiban Drive, Naga City (054) / psa_camsur@yahoo.com.ph Page 5

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