Inflation Rate (in Percent) [ Inflation rate in Camarines Sur increases to 5.3 percent in May Date of Release: July 13, Reference No. -027 The provincial headline inflation rate significantly increased to 5.3 percent in May from the 4.8 percent inflation rate in April. Figure 1. Year-on-Year Headline Inflation Rates in Camarines Sur, All Items: January May (2006=100) 8.0 7.0 6.0 5.0 4.0 3.0 3.0 4.3 4.6 6.4 6.3 6.1 5.7 5.9 6.8 5.3 5.4 5.1 6.6 6.4 6.7 4.8 5.3 2.0 1.0 0.0 Jan Feb Mar Apr May June July Aug Sept Oct Month/Year Nov Dec Jan Feb Mar Apr May Price Situation: Year- on-year On a Year-on-Year comparison, commodity groups under Alcoholic Beverages and Tobacco reflected the biggest inflation rate of 26.83 percent in May from 174.4 index points in May to 221.9 index points in May. Commodity groups under Health also increased to 12.07 percent in May from 130.9 index points in May to 148.1 index points in May. Commodity groups under Transport posted a negative inflation rate of 9.22 percent in May from 185.5 index points in May to 168.6 index points in May. 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 at a slower rate in April and May at 0.32 percent. Food and Non-Alcoholic Beverages posted a decrease of 0.33 percent in May from 183.3 in April to 182.7 in May. Across Non-Food Groups, commodities under Housing, Water, Electricity, Gas and other Fuels posted the biggest increase in May with 1.86 percent from 134.4 index points in April to 136.9 index points in May. Commodities under Recreation and Culture also increased by 1.34 percent in May from 111.7 index points in April to 113.2 index points in May. Restaurant, Miscellaneous Goods and Services also presented an increase of 1.39 percent in May. The rest of the commodity groups did not show significant changes in May. Table 1. Headline Inflation Rates in Camarines Sur, by Commodity Group (Year-on-Year and Monthon-Month): May May ; April May (2006=100) Commodity Group May Year-on-Year May Percent Change Year-on-Year Month-on-Month April May Food and Non-Alcoholic Beverages 173.4 182.7 5.71 183.3 182.7 Alcoholic Beverages and Tobacco 174.4 221.9 26.83 221.2 221.9 Clothing and Footwear 124.9 130.4 4.16 130.4 Housing, Water, Electricity, Gas and 127.4 136.9 5.49 134.4 136.9 other Fuels Furnishings, Household Equipment 142.9 9.45 142.4 142.9 and Routine Maintenance of the House Health 130.9 148.1 12.07 146.7 148.1 Transport 185.5 168.6-9.22 168.4 168.6 Communication 97.1 0.62 Recreation and Culture 110.3 113.2 1.27 111.7 113.2 Education 116.3 117.9 1.38 117.9 117.9 Restaurant, Miscellaneous Goods and 173.9 182.8 3.68 180.3 182.8 Services Inflation Rate - - - 4.8 5.3 Purchasing Power of Peso - - - 0.61 0.60 CPI (All Items) - - - 164.7 165.3 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, May and May (2006 = 100) XI. RESTAURANTS AND MISCELLANEOUS 173.9 Figure 3. Consumer Price Index for All Income Households 117.9 in Camarines Sur: X. EDUCATION Month-on-Month, November December 116.3 (2006 = 100) 111.7 IX. RECREATION AND CULTURE VIII. COMMUNICATION 110.3 97.1 VII. TRANSPORT 168.4 185.5 VI. HEALTH 146.7 130.9 V. FURNISHINGS, HOUSEHOLD 142.4 134.4 IV. HOUSING, WATER, ELECTRICITY, GAS 127.4 III. CLOTHING AND FOOTWEAR 124.9 II. ALCOHOLIC BEVERAGES AND TOBACCO 174.4 221.2 I. FOOD AND NON-ALCHOLIC BEVERAGES 183.3 173.4 180.3 May 18 May 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, April and May (2006 = 100) XI. RESTAURANTS AND MISCELLANEOUS X. EDUCATION IX. RECREATION AND CULTURE VIII. COMMUNICATION 117.9 117.9 113.2 111.7 182.8 180.3 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 168.6 168.4 148.1 146.7 142.9 142.4 136.9 134.4 130.4 182.7 183.3 221.9 221.2 May 18 April 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 decreased to 0.60. In Camarines Sur, Purchasing Power of Peso for May = (1/165.3)*100 = 0.60 This means that a peso in 2006 is only worth 60 centavos in May, or you may need PhP165.3 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 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 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