Wednesday, July 31, 2019
A slower annual headline inflation rate of 2.4 percent was recorded in Davao del Norte in June 2019. In June 2018, inflation settled at 4.6 percent and in May 2019, 2.1 percent.
On the average, the retail price of consumer goods and services typically purchased by a household in Davao del Norte is 121.8 in the current month, higher than the 118.9 index in June 2018. The price indices of all the commodity groups except for education also increased.
Annual gains in the price indices were mainly driven by the increase in the index of health (117.8 to 130.7), and alcoholic beverages and tobacco (166.2 to 174.6). Uptrends were also noted in the indices of recreation and culture (118.4 to 123.7), furnishings, household equipment and routine maintenance of the house (116.7 to 120.3), restaurant and miscellaneous goods and services (123.3 to 126.9), clothing and footwear (127.1 to 130.3), food and non-alcoholic beverages (117.3 to 119.9), housing, water, electricity, gas and other fuels (122.4 to 125.0), communication (101.1 to 101.8), and transport (104.8 to 105.5).
In contrast, an annual decline of 8.0 percent was observed in the index of education.
The month-on-month increment in the inflation rate mainly resulted from the changes in the price indices of education (118.3 to 121.6) and health (127.2 to 130.7). Other commodity groups that registered gains were alcoholic beverages and tobacco (171.3 to 174.6), food and non-alcoholic beverages (118.1 to 119.9), recreation and culture (122.6 to 123.7), furnishings, household equipment, and routine maintenance of the house (119.8 to 120.3), restaurant and miscellaneous goods and services (126.7 to 126.9), and clothing and footwear (130.2 to 130.3).
In contrast, the price index of housing, water, electricity, gas, and other fuels, and transport decelerated by 0.7 percent (1259 to 125.0) and 1.6 percent (107.2 to 105.5), respectively.
No change was observed in the index communication.
With these changes on the price indices, the purchasing power of peso in Davao del Norte declined to 0.82 in June 2019.
Consumer Price Index (CPI)
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.
Components of the CPI
A sample of the the variety of goods and services commonly consumed by an average Filipino household to represent the price behavior of all goods and services brought by consumer.
A value attached to a commodity or group of commodities depending on the magnitude of its contribution to the index.
A reference date at which the index is equal to 100. Base year is 2012.
Establishments where prices of commodities are quoted.
The Philippines by region and province and for NCR.
Laspeyre’s formula: fixed base year and weights.
The annual rate of change or the year-on-year changes in the average retail prices expressed in percent.
Purchasing Power of the Peso (PPP)
The measure of how much the peso in the base period is worth in the current period.
PEPITO D. AMOYEN
Chief Statistical Specialist