Inflation rate in Eastern Visayas escalates to 3.1% in May 2021

By PSA-8
June 19, 2021

TACLOBAN CITY – Inflation Rate (IR) in Eastern Visayas escalated to 3.1 percent in May 2021. This IR is 0.3 percentage point higher compared with the 2.8 percent IR in April 2021. This May IR of the region is also 1.3 percentage points higher than the recorded 1.8 percent IR in the same period last year.

In comparison with the national average IR, the regional IR is 1.4 percentage points lower than the 4.5 percent national IR in May 2021.

Among the provinces, only Southern Leyte and Leyte registered decreases in IRs. Southern Leyte’s IR declined to 3.3 percent in May 2021 from 4.1 percent in April 2021, a reduction by 0.8 percentage point. Leyte’s IR, meanwhile, decreased to 0.9 percent in May 2021 from 1.4 percent in April 2021. It was the lowest IR among the provinces during the month in review. Samar registered the highest increase in IR by 1.6 percentage points. Its IR rose to 8.3 percent in May 2021 from 6.7 percent in April 2021. It recorded the highest IR among provinces during the reference month.

Northern Samar grew by 0.9 percentage point, registering 1.6 percent IR in May 2021. Biliran’s 0.6 percentage point increase in IR brought its level to 5.5 percent. While Eastern Samar’s IR settled at 5.4 percent, prompted by the 0.5 percentage point increase during the month in review.

Majority of the 11 commodity groups in the region exhibited higher IRs in May 2021 compared with their rates in April 2021. Transport commodity group registered the biggest increase in IR by 0.8 percentage point. Its double-digit IR of 12.9 percent in April 2021 grew to 13.7 percent in May 2021. This can be traced to higher double-digit IRs for both operation of personal transport equipment (28.9%) and transport services (10.1%).

Housing, water, electricity, gas and other fuels commodity group recorded 3.1 percent IR in May 2021, higher by 0.7 percentage point from the 2.4 percent IR in April 2021. This growth can be attributed to the higher IRs in the indices for electricity, gas, and other fuels (8.7%), maintenance and repair of the dwelling (2.1%), and water supply and miscellaneous services relating to the dwelling (0.9%).

The IR for food and non-alcoholic beverages commodity group increased to 2.2 percent in May 2021 from 2.0 percent in April 2021. Lower IRs were noted in majority of the items under this commodity group. However, these were offset by faster IRs noted in other food indices resulting to 0.2 percentage point increase in IR for food and non-alcoholic beverages commodity group.

Fruits index registered the highest decrease of 5.3 percentage points, from 2.9 percent IR in April 2021 to 2.4 percent deflation in May 2021. The IR for vegetables index managed to shed off by 2.9 percentage points from its 3.2 percent IR in April 2021, posting 0.3 percent IR in May 2021.

The IR for sugar, jam, honey, chocolate, and confectionery index also declined by 0.2 percentage point, settling at 1.4 percent during the month in review. Corn index further deflated to 4.1 percent. Decreased IRs were also registered in the indices for meat (8.9%) and non-alcoholic beverages (0.4%).

Meanwhile, prices of fish picked up at a faster rate of 6.4 percent in May 2021 from 5.3 percent in April 2021. Faster price increases were also noted in indices for food products not elsewhere classified (3.7%); milk, cheese, and eggs (2.2%); and oils and fats (1.6%). Rice and bread and cereals continued to register deflations in May 202 but at a slower rate of 1.0 percent and 0.7 percent, respectively.

The IR for clothing and footwear commodity group increased by 0.2 percentage point, pushing its IR to 2.0 percent in May 2021.

Compared with its April 2021 levels, IR for communication commodity group inched up by 0.1 percentage point, registering to 0.7 percent IR in May 2021.

Recreation and culture commodity group continued to record deflation but at a slower rate of 1.4 percent in May 2021 from 1.5 percent in April 2021.

Only the commodity group of restaurants and miscellaneous goods and services registered a decrease in IR. Its IR declined to 2.8 percent in May 2021 from 3.6 percent in April 2021.

Meanwhile, alcoholic beverages and tobacco; furnishings, household equipment, and routine maintenance of the house; health; and education commodity groups retained their previous month’s IRs at 6.9 percent, 3.2 percent, 1.6 percent, and 0.5 percent, respectively.

The Purchasing Power of Peso (PPP) of the region weakened to P0.76 in May 2021. This PPP implies that the goods and services worth P76.00 in 2012 is now worth P100.00 in May 2021.

Compared with their levels in April 2021, PPP in Biliran strengthened by P0.01, while PPP in Northern Samar and Samar weakened by P0.01. The rest of the provinces retained their previous month’s PPP. Leyte recorded the strongest PPP among provinces in May 2021 at P0.80. Biliran ranked second at P0.79, followed by Southern Leyte at P0.78, Eastern Samar at P0.73, and Northern Samar at P0.71. Samar posted the weakest PPP during the reference month at P0.69.