Inflation rate in EV increases further to 2.3% in August 2020

By PSA-8
September 16, 2020

TACLOBAN CITY – Inflation Rate (IR) in Eastern Visayas increased further to 2.3 percent in August 2020. This IR is 0.6 percentage point higher compared with the 1.7 percent IR in July 2020. This is also 1.8 percentage points higher than the recorded 0.5 percent IR in the same period last year.

The regional IR is 0.1 percentage point lower than the 2.4 percent national average inflation rate in August 2020.

Northern Samar, Samar, Eastern Samar, and Leyte registered higher inflation rates in August 2020 compared with their figures in July 2020. Samar recorded the highest growth of 1.4 percentage points, from 2.9 percent IR in July 2020 to 4.3 percent IR in August 2020. The rest of the provinces registered increases ranging from 0.2 percentage point to 0.6 percentage point. Meanwhile, Southern Leyte and Biliran, retained their previous month’s inflation rates of 3.0 percent and 0.8 percent, respectively. Northern Samar posted the highest IR at 5.1 percent, while Biliran recorded the lowest IR during the month in review at 0.8 percent.

Majority of the 11 commodity groups in the region exhibited higher IRs in August 2020 compared with their rates in July 2020. Transport commodity group registered the biggest increase of 1.5 percentage points, from 1.0 percent deflation in July 2020 to 0.5 percent IR in August 2020. The 1.4 percent IR in the index for transport services offset the 2.5 percent deflation in the index for operation of personal transport equipment.

IRs for restaurant and miscellaneous goods and services commodity group and furnishings, household equipment and routine maintenance of the house commodity group both recorded 0.7 percentage point increase, posting 4.4 percent and 3.2 percent, respectively, in August 2020.

Compared with the July 2020 level, the IRs for the commodity groups of housing, water, electricity, gas and other fuels (1.5 percent); health (1.2 percent) were both higher by 0.5 percentage point in August 2020.

The commodity group of clothing and footwear went up by 0.3 percentage point, from 3.0 percent in July 2020 to 3.3 percent in August 2020. This can be traced back to higher IRs recorded in both indices for clothing (3.7 percent) and footwear (2.2 percent).

The IR of food and non-alcoholic beverages commodity group inched up by 0.4 percentage point to 2.2 percent in August 2020 from 1.8 percent in July 2020. Higher IRs were noted in majority of the items under this commodity group. Vegetables index registered the highest increase of 1.9 percentage points, posting 8.3 percent IR in August 2020 from 6.4 percent IR in July 2020. Double digit IR was still noted in fruits index during the month in review at a higher rate of 15.9 percent. Rice and bread and cereals indices continued to register deflations but at slower rates of 1.7 percent and 0.7 percent, respectively. Meat index, meanwhile, retained its 0.2 percent deflation recorded in July 2020.

On the other hand, recreation and culture commodity group declined by 3.1 percentage points to 2.0 percent deflation in August 2020 from 1.1 percent IR in July 2020. This can be attributed to the significant decrease in the index for recreational and cultural services to a double-digit deflation rate of 11.1 percent in August 2020, from 0.9 percent IR in July 2020.

IR for alcoholic beverages and tobacco commodity group eased down by 0.1 percentage point, settling at 7.6 percent during the month in review.

Communication commodity group retained its previous month’s deflation at 1.7 percent. Education, meanwhile, sustained its zero IR in August 2020.

The Purchasing Power of Peso (PPP) of the region remained at P0.79 in August 2020. This PPP implies that the goods and services worth P79.00 in 2012 is worth P100.00 in August 2020.

PPP in Eastern Samar and Samar weakened by P0.01, while the rest of the provinces sustained their PPP last month. Biliran recorded the strongest PPP at P0.83. Leyte ranked second at P0.81, followed by Southern Leyte at P0.80, and Eastern Samar at P0.77. Northern Samar and Samar posted the weakest PPP at P0.73.