Inflation rate in Camarines Sur decreases to 5.2 percent in June 2018
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1 Inflation Rate (in Percent) [ Inflation rate in Camarines Sur decreases to 5.2 percent in Date of Release: July 13, Reference No The provincial headline inflation rate slightly decreased to 5.2 percent in from 5.3 percent in May Figure 1. Year-on-Year Headline Inflation Rates in Camarines Sur, All Items: (2006=100) July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Month/Year Price Situation: Year- on-year On a Year-on-Year comparison, commodity groups under Alcoholic Beverages and Tobacco reflected the biggest inflation rate of percent in from index points in to index points in. Commodity groups under Health also increased to percent in from index points in to index points in. Commodity groups under Transport posted a negative inflation rate of 7.01 percent in from index points in to index points in. PSA Building, #774 Panganiban Drive, Naga City (054) / psa_camsur@yahoo.com.ph Page 1
2 Prices of commodities for Furnishings, Household Equipment and Routine Maintenance of the House, Housing, Water, Electricity, Gas and Other Fuels, Food and Non-Alcoholic Beverages, Clothing and Footwear, and Restaurants and Miscellaneous Goods and Services, also increased as shown in Table 1. Prices of commodities for Education, Communication and Recreation and Culture tend to increase at a slower rate than other commodity groups every year. Price Situation: Month-on-Month Alcoholic Beverages and Tobacco increased in May and at 0.36 percent. Food and Non-Alcoholic Beverages posted an increase of 0.66 percent in from in May to in. Across Non-Food Groups, commodities under Education posted the biggest increase in with 0.59 percent from index points in May to index points in. Commodities under Transport decreased to 0.06 percent in from index points in May to index points in. The rest of the commodity groups did not show significant changes in. Table 1. Headline Inflation Rates in Camarines Sur, by Commodity Group (Year-on-Year and Monthon-Month): ; May (2006=100) Commodity Group Year-on-Year Percent Change Year-on-Year Month-on-Month May 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, and (2006 = 100) XI. RESTAURANTS AND MISCELLANEOUS Figure 3. Consumer Price Index for All Income Households in Camarines Sur: X. EDUCATION Month-on-Month, November December (2006 = 100) IX. RECREATION AND CULTURE VIII. COMMUNICATION VII. TRANSPORT VI. HEALTH V. FURNISHINGS, HOUSEHOLD 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, May and (2006 = 100) XI. RESTAURANTS AND MISCELLANEOUS X. EDUCATION IX. RECREATION AND CULTURE VIII. COMMUNICATION VII. TRANSPORT VI. HEALTH V. FURNISHINGS, HOUSEHOLD IV. HOUSING, WATER, ELECTRICITY, GAS III. CLOTHING AND FOOTWEAR II. ALCOHOLIC BEVERAGES AND TOBACCO I. FOOD AND NON-ALCHOLIC BEVERAGES May 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 = (1/165.9)*100 = 0.60 This means that a peso in 2006 is only worth 60 centavos in, or you may need PhP165.9 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 2016 and September. 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 December. 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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