TACLOBAN CITY — Leyte’s inflation rate increased to 4.4 percent in September 2023 from 2.7 percent in August 2023. This makes the average inflation rate of the province from January to September 2023 to be 4.1 percent.
In September 2022, the inflation rate was higher at 5.9 percent. Likewise, the region’s inflation rate increased to 4.9 percent in September 2023 from 3.1 percent in August 2023. All provinces and HUC in the region manifested an increase in their respective inflation rates for September 2023.
Main drivers to the upward trend of Leyte’s inflation
The uptrend in Leyte’s inflation in September 2023 was primarily brought about by the higher year-on-year increase in the heavily weighted Food and Non-alcoholic Beverages at 7.9 percent during the month from 4.8 percent in the previous month, which was driven by the faster rate of increase in prices of cereals and cereal products, milk, other dairy products and eggs, oils and fats, fruits and nuts, and vegetables, tubers, plantains, cooking bananas, and pulses, and the increase in prices of meat and other parts of slaughtered mand animals.
Transport, with an inflation rate of 2.3 percent from deflation of -0.6 percent in the previous month, also contributed to the uptrend of Leyte’s inflation in September 2023, which was caused by the slower rate of decrease in prices of fuels and lubricants for personal transport equipment.
In addition, higher annual increases were noted in the indices of the following commodity groups during the month:
a. Alcoholic beverages and tobacco with 7.9 percent inflation from 6.9 percent due to a faster rate of increase in prices of spirits and liquors and the increase in prices of wine;
b. Clothing and footwear with 0.6 percent inflation from 0.4 percent due to the faster rate of increase in prices of garments;
c. Furnishings, household equipment, and routine household maintenance with 2.7 percent inflation from 2.6 percent due to the faster rate of increase in prices of small household appliances, non-motorized tools and miscellaneous accessories, and non-durable household goods; and
d. Restaurants and accommodation services with 4.1 percent inflation from 3.6 percent due to the faster rate of increase in prices of restaurants, café and the like.
In contrast, two (2) major commodity groups recorded a 0.2 percentage point decrease in their respective inflation rates in September 2023. These are recreation, sport, and culture (1.8 percent from 2.0 percent) and personal care and miscellaneous goods and services (3.1 percent from 3.3 percent). The former was caused by the lower rate of increase in stationery and drawing materials prices, while the latter was due to the slower rate of increase in prices of other appliances, articles, and products for personal care and the decrease in prices of other personal effects.
The other three (3) major commodity groups maintained their inflation rates from their previous months’ rates: Health with a 3.6 percent inflation rate; Education services with a zero percent inflation rate; and Financial services with a zero percent inflation rate.
Meanwhile, housing, water, electricity, gas and other fuels, and Information and Communication retained their deflation of -1.5 and -0.1 percent, respectively.
The major contributors to the September 2023 inflation rate of Leyte were food and non-alcoholic beverages with 81.8 percent share; transport with 15.0 percent share; and restaurants and accommodation services with 1.4 percent share.
The inflation rate is the general rise in prices over a period. It indicates how fast or slow the price changes over two periods. Contrary to common knowledge, low inflation does not necessarily connote that prices are falling; instead, it means that prices continue to increase at a slower rate. It is a derived indicator of the Consumer Price Index (CPI).
The CPl is a measure of change in the average retail prices of goods and services commonly purchased by a particular group of people in a specific area. The overall CPl in Leyte for September 2023 was 120.5. This implies that the average retail price of goods and services in Leyte is 20.5 percent higher than the average retail price in 2018 (base year). (PSA Leyte)
Purchasing Power of Peso
The Purchasing Power of the Peso (PPP) in Leyte weakened to 83 centavos in September 2023 after retaining an 84 centavos PPP from March 2023 to August 2023. Likewise, the regional PPP weakened to 82 centavos in September 2023 from 83 centavos in August 2023. The 83 centavos purchasing power of pesos in Leyte indicates that the same basket of goods and services worth 83 pesos in 2018 (base year) is worth 100 pesos during the reference period. (AAC/PSA Leyte)
