Thursday, January 11, 2018
At the country level, the annual headline inflation was registered at 3.3 percent in December 2017. It was the same rate recorded in the previous month.
Headline Inflation, All Items
The stability in the country’s headline inflation for November to December can also be said for Region 10, at 4.0 percent for both months. The region’s headline inflation, both in November and December, were higher than the national and AONCR figures. Mixed movements in the annual growths among the commodity groups were noticed during the month. Higher annual mark-ups were posted in the indices of the following commodity groups:
- Food and Non-alcoholic Beverages (4.4%);
- Alcoholic Beverages and Tobacco (7.5%); and
- Restaurant and Miscellaneous Goods and Services (2.7%).
Annual headline inflation in the rest of the commodity groups either decelerated or remained at their previous month’s rates (Table 1).
The annual average headline inflation of Region 10 for 2017 was registered at 3.4 percent. This was 2.0 and 2.1 percent points higher compared to 2016 and 2015 inflation rates, respectively. In 2017 alone, it was on the month of June that the region’s headline inflation was at its lowest at 2.8 percent. (Table 2)
Table 1. Annual Headline Inflation of All Commodity Groups, Region X November and December 2017
Table 2. Year-on-Year Headline Inflation of All Items, Region X January 2015-December 2017
The monthly CPI of the alcoholic beverages and tobacco commodity group for Region 10 showed the largest monthly percentage change for December, displaying at 1.0 percent. The hike was due to a 1.6 percent increase in the CPI of tobacco products (from 244.5 in November to 248.5 in December).
This was followed by the commodity group of food and non-alcoholic beverages at 0.9 percent. This upward movement can be attributed to the rise in the CPI of these subgroups:
- fish (1.8%);
- vegetables (1.5%);
- oils and fats (1.4%), food products NEC (0.8%); and
- bread and cereals (0.7%).
Transport came in third at with a December CPI of 134.3, translating to a 0.5 monthly percentage change (from 133.6 in November).
Other commodity groups showed little or no percentage change in the CPI from November to December (Table 3).
Table 3. CPI of All Commodity Subgroups, Region X November to December 2017 (2006 = 100)
Camiguin showed the highest CPI for December 2017 in the region. However it was a decrease from its previous month’s 184.5 CPI, translating to a monthly percentage decrease of 0.2 percent. This can
be due to the decrease in prices of the food and non-alcoholic beverages commodity group (a 0.8% decrease), particularly in the prices of fish. It was the province of Lanao del Norte that registered the
largest increase in the monthly percentage change between the two months at 0.8 percent. This increase can be attributed to the increases in the indices of food and non-alcoholic beverages (1.2%),
alcoholic beverages and tobacco (0.8%), transport (0.8%) and housing, water, electricity, gas and other fuels (0.6%). (Table 4)
Table 4. CPI for Commodity Subgroups by Province, December 2017 (2006 = 100)
Table 4. CPI for All Items, Region 10: November-December 2017 2006=100
On headline inflation for December 2017, Misamis Occidental had the highest at 4.7 percent. This can be due to the increase in the indices of health (10.1%) and housing, water,electricity, gas and other fuels (7.1 %) commodities. Camiguin had the lowest headline inflation in region 10 for December 2017 at 2.3 percent. The main reason for this can be found in the indices of the transport commodities, which deflated to 6.4 percent. (Table 5)
Table 5. Headline Inflation for All Commodity Subgroups by Province, December 2016 and 2017 (2006 = 100)
Table 6. Headline Inflation for All Items, Region 10: December 2016 and 2017 2006=100
Consumer Price Index (CPI) - an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.
Inflation rate (Headline Inflation) - the annual rate of change or the year-on-year change in the CPI. It is the rate of change in the average price level between two periods.
Purchasing Power of Peso (PPP) - a measure of the real value of the peso in a given period relative to a chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100.
Base Year (2006 = 100) - The base period is the period, usually a year, at which the index number is set to 100. It is the reference point of the index number series. The year 2006 was chosen as the base year because it was the year when FIES was conducted. It is also in accordance with the National Statistical Coordination Board (NSCB) Resolution Number 2, Series of 2009, which approves the synchronized rebasing of the price indices to base year 2006.
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