inflation rate eases to 5.9% in July 2018
August 10, 2018
TACLOBAN CITY – The
annual Inflation Rate (IR) of Eastern Visayas declined to 5.9% in
July after posting the record-high 6.3% in June. This IR was 0.4
percentage point lower compared with the 6.3% IR a month ago, but
2.7 percentage points higher than the recorded 3.2% IR in the same
period last year. The regional inflation rate was 0.2 percentage
point higher than the 5.7% national average in July.
Four provinces in the
region – Biliran, Leyte, Northern Samar, and Samar, posted lower
inflation rates in July with 0.5 percentage point, 0.4 percentage
point, 1.0 percentage point, and 0.1 percentage point decreases,
respectively, compared with their figures in the previous month. On
the other hand, increases were noted in Eastern Samar (0.3
percentage point) and Southern Leyte (0.1 percentage point). Eastern
Samar registered the highest IR at 7.8%, while Southern Leyte posted
the lowest IR at 1.5% (Table 1).
By major commodity groups,
Education recorded the highest decrease of a hefty 19.7 percentage
points, from 3.5% in June to -16.2 percent in July. It posted the
lowest and the only commodity with negative inflation among all
commodity groups. This may be attributed to the implementation of
the free tuition law among State Universities and Colleges.
Annual price changes in
Alcoholic Beverages and Tobacco slowed down by 0.4 percentage point
from its previous month’s rate, but still recorded a double digit
inflation rate of 21.6%, the highest among all commodities.
The heavily weighted Food
and Non-Alcoholic Beverages went up by 0.3 percentage point, from
7.9% in June to 8.2% during the reference month. This can be
attributed to faster price increases in rice, corn, fish,
vegetables, and sugar, jam, honey, chocolate and confectionery
products. Fish remained to have a double digit inflation at 18.5%,
the highest among all food items. Communication, meanwhile, recorded
zero inflation rate in July.
The Purchasing Power of
Peso (PPP) of the region remained at P 0.81 in July 2018. This PPP
implies that goods and services worth 100 pesos in July 2018 only
costs 81 pesos in 2012.
All provinces sustained
their PPP from last month, except Northern Samar, the only province
that registered a 0.01 centavo increase in the PPP with its figure a
month ago. Leyte recorded the strongest PPP at P0.84. Southern Leyte
ranked second at P0.83, followed by Biliran at P0.82, Eastern Samar
at P0.79, and Northern Samar at P0.77. Samar, meanwhile, posted the
weakest PPP at P0.76 (Table 1).