TACLOBAN CITY -- Leyte’s inflation rate scaled up by 0.4 percentage point in July 2021, from 1.3% in June 2021 to 1.7% during reference month while the region’s inflation rate slightly declined by 0.1 percentage point from 3.3% in June 2021 to 3.2% in July 2021.
This month’s inflation rate was the second highest recorded this year after its upsurge in the months of February and March with 1.9%. The inflation rate of Leyte was relatively lower compared to the region’s rate this month.
Among all of the commodity groups, two (2) posted higher inflation rates compared to their June 2021 rates. Housing, Water, Electricity, Gas and Other Fuels exhibited the biggest increase with 1.5 percentage points, from 0.3% in the previous month to 1.8% in July 2021. This can be attributed by the sudden rise in the inflation rate of Electricity, Gas and other Fuels which recorded an increase of 5.2 percentage points. Food and Non-Alcoholic Beverages also registered an increment of 0.6 percentage point on its inflation rate, from 1.4% in June 2021 to 2% in the reference month.
On the other hand, the inflation rates of Clothing and Footwear and Transport slowed down this month. The inflation rate of the Transport commodity group fell off by 0.8 percentage point, from 5.6% in June 2021 to 4.8% in July 2021. This was due to the significant decrease on the inflation rate of Operation of Personal Transport Equipment by 4.0 percentage points. Clothing and Footwear also had a decrease on its inflation rate by 0.4 percentage point, from 0.5% in June 2021 to 0.1% this month. The drop was triggered by the lowest recorded inflation rate of Footwear by 0.1% since July 2020.
Five (5) of the commodity groups retained their inflation rate since the previous month: Alcoholic Beverages (2%), Furnishings, Household Equipment and Routine Maintenance of the House (1.5%), Health (1.6%), Communication (0.7%), and Restaurant and Miscellaneous Goods and Services (1.5%).
Education has been clutching to its 0.0% inflation rate since July 2020. Meanwhile, Recreation and Culture continuously holding its deflation since August 2020. The said commodity group grips to its 3.8% deflation since March 2021.
The inflation rate is the general rise in prices over a period. It indicates how fast or how slow price changes over two-time 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 CPI 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 CPI in Leyte for July 2021 was 126.2. This implies that the average retail price of goods and services in Leyte is 26.2 percent higher than the average retail prices in 2012 (base year).
Purchasing Power of Peso (PPP) drops at 79 centavos in July 2021
The Purchasing Power of Peso (PPP) in Leyte declined at 79 centavos in July 2021 compared to 80
centavos last month. Furthermore, the PPP in the region settled at 76 centavos since May 2021. The 79 centavos purchasing power of the peso in Leyte indicates that the same basket of goods and services worth 79 pesos in 2012 (base year) is worth 100 pesos during the reference period. (PSA Leyte)