Inflation Rate (in Percent) [ Inflation rate in Camarines Sur decreases to 5.2 percent in Date of Release: July 13, Reference No. -028 The provincial headline inflation rate slightly decreased to 5.2 percent in from 5.3 percent in May. 8 7 6 5 4 3 2 1 Figure 1. Year-on-Year Headline Inflation Rates in Camarines Sur, All Items: (2006=100) 6.1 5.7 5.9 6.8 5.3 5.4 5.1 6.6 6.4 6.7 4.8 5.3 5.2 0 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 27.69 percent in from 174.4 index points in to 222.7 index points in. Commodity groups under Health also increased to 12.97 percent in from 131.1 index points in to index points in. Commodity groups under Transport posted a negative inflation rate of 7.01 percent in from 181.2 index points in to 168.5 index points in. PSA Building, #774 Panganiban Drive, Naga City (054) 871-5872/871-5673 psa_camsur@yahoo.com.ph www.psacamsur.com Page 1
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 182.7 in May to 183.9 in. Across Non-Food Groups, commodities under Education posted the biggest increase in with 0.59 percent from 117.9 index points in May to 118.6 index points in. Commodities under Transport decreased to 0.06 percent in from 168.6 index points in May to 168.5 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 175.0 183.9 5.09 182.7 183.9 Alcoholic Beverages and Tobacco 174.4 222.7 27.69 221.9 222.7 Clothing and Footwear 125.0 130.5 4.40 130.4 130.5 Housing, Water, Electricity, Gas and 127.3 7.54 other Fuels Furnishings, Household Equipment 130.3 9.67 and Routine Maintenance of the House Health 131.1 12.97 Transport 181.2 168.5-7.01 168.6 168.5 Communication 97.1 0.62 Recreation and Culture 110.4 113.3 2.63 113.2 113.3 Education 117.9 118.6 0.59 117.9 118.6 Restaurant, Miscellaneous Goods and 176.7 3.45 Services Inflation Rate - - - 5.3 5.2 Purchasing Power of Peso - - - 0.60 0.60 CPI (All Items) - - - 165.3 165.9 PSA Building, #774 Panganiban Drive, Naga City (054) 871-5872/871-5673 psa_camsur@yahoo.com.ph www.psacamsur.com Page 2
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 176.7 Figure 3. Consumer Price Index for All Income Households 118.6 in Camarines Sur: X. EDUCATION 117.9 Month-on-Month, November December (2006 = 100) 113.3 IX. RECREATION AND CULTURE VIII. COMMUNICATION 110.4 97.1 VII. TRANSPORT 168.5 181.2 VI. HEALTH 131.1 V. FURNISHINGS, HOUSEHOLD 130.3 IV. HOUSING, WATER, ELECTRICITY, GAS 127.3 III. CLOTHING AND FOOTWEAR 130.5 125.0 222.7 II. ALCOHOLIC BEVERAGES AND TOBACCO 174.4 I. FOOD AND NON-ALCHOLIC BEVERAGES 183.9 175.0 18 17 0 50 100 150 200 250 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 118.6 117.9 113.3 113.2 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 168.5 168.6 130.5 130.4 183.9 182.7 222.7 221.9 18 May 18 0 50 100 150 200 250 Consumer Price Index PSA Building, #774 Panganiban Drive, Naga City (054) 871-5872/871-5673 psa_camsur@yahoo.com.ph www.psacamsur.com Page 3
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 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 0.60. 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 P100.00 in 2006. 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 0.049 annually from 1997 to. The PPP in was 0.64. 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 1997. 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Figure 4. Purchasing Power of Peso in Camarines Sur: 1997- (2006=100) 1.62 1.00 0.64 Year PSA Building, #774 Panganiban Drive, Naga City (054) 871-5872/871-5673 psa_camsur@yahoo.com.ph www.psacamsur.com Page 4
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) 871-5872/871-5673 psa_camsur@yahoo.com.ph www.psacamsur.com Page 5