EV closes 2020 with 2.4% inflation rate

By PSA-8
January 20, 2021

TACLOBAN CITY – Eastern Visayas closed 2020 with a 2.4 percent Inflation Rate (IR). This IR is 0.6 percentage point higher compared with the 1.8 percent IR a month ago. This is also 0.9 percentage point higher than the recorded 1.5 percent IR in the same period last year.

The regional IR is 1.1 percentage points lower than the 3.5 percent national average inflation rate in December 2020.

Samar, Northern Samar, Southern Leyte, and Leyte registered higher IRs in December 2020 compared with their figures in November 2020. Samar and Northern Samar recorded the increase in their IRs at 1.9 percentage points, pushing their IRs in December 2020 to 5.5 percent and 4.0 percent, respectively. Southern Leyte and Leyte’s IRs, meanwhile, rose to 3.2 percent and 1.9 percent, respectively. Both provinces recorded 0.6 percentage point increase from their figures in November 2020.

On the other hand, Biliran registered a 1.0 percentage point decrease in IR. It declined to 0.8 percent in December 2020 from 1.8 percent in November 2020. This is the lowest IR among the provinces during the month in review. Eastern Samar, meanwhile, eased down to 1.5 percent in December 2020 from 1.7 percent in November 2020.

Of the 11 commodity groups in the region, five (5) exhibited higher IRs in December 2020 compared with their rates in November 2020. Alcoholic beverages and tobacco commodity group registered the biggest increase of 2.9 percentage points, from 6.4 percent in November 2020 to 9.3 percent in December 2020. This acceleration may be traced to the double-digit IR (12.4%) registered in the index for tobacco.

The IR for food and non-alcoholic beverages commodity group increased by 1.4 percentage points, from 1.7 percent in November 2020 to 3.1 percent in December 2020. Higher IRs were noted in all items under this commodity group. Vegetables index registered the highest increase of 4.7 percentage points, posting a double-digit IR of 13.0 percent in December 2020 from 8.3 percent in November 2020.

Fish index recorded 2.9 percent IR in December 2020 from 0.6 percent deflation in November 2020. Corn index continued to register deflation but at slower rate of 0.4 percent during the reference month from 0.5 percent deflation in November 2020. The rest of the items under this commodity group recorded increases in IRs ranging from 0.1 percent to 2.2 percent.

Transport commodity group recorded 1.1 percentage points increase in its IR, from 3.9 percent in November 2020 to 5.0 percent in December 2020. The 3.1 percent deflation registered in the index for operation of personal transport equipment was offset by the higher IR (8.9%) posted in the index for transport services.

Compared with their November 2020 levels, the IRs for clothing and footwear commodity group (2.7%) and health commodity group (1.2%) were higher by 0.2 percentage point and 0.1 percentage point, respectively, in December 2020.

On the other hand, annual price change for housing, water, electricity, gas and other fuels commodity group declined by 1.1 percentage points. The 0.5 percent IR in November 2020 dropped to 0.6 percent deflation in December 2020. This can be attributed to the significant decrease in the index for electricity, gas and other fuels to 2.8 percent deflation in December 2020, from 0.1 percent deflation in November 2020.

The deflation for communication commodity group eased down by 0.1 percentage point, settling at 1.6 percent during the month in review.

The commodity groups of restaurants and miscellaneous goods and services; furnishings, household equipment and routine maintenance of the house; and education retained their previous month’s IRs at 3.8 percent, 2.4 percent, and 0.4 percent, respectively. Meanwhile, recreation and culture commodity group retained its previous month’s deflation at 1.4 percent.

The Purchasing Power of Peso (PPP) of the region remained at P0.78 in December 2020. This PPP implies that the goods and services worth P78.00 in 2012 is worth P100.00 in December 2020.

Compared to their levels in November 2020, PPP in Samar (P0.71) weakened by P0.02 in December 2020. This is the lowest PPP among the provinces during the month in review. PPP in Leyte (P0.80), Southern Leyte (P0.79), Eastern Samar (P0.75), and Northern Samar (P0.72) weakened by P0.01 in December 2020. Biliran, meanwhile, retained its previous month’s PPP at P0.82 registering the strongest PPP among the provinces during the reference month.