5.2% in­fla­tion lashes CAR

Sun.Star Baguio - - Front Page - Lau­ren Alimondo Sun*Star Re­porter

KALINGA prov­ince posted the high­est in­fla­tion rate at 8.8 per­cent as the av­er­age in­crease in price of goods and ser­vices in the Cordillera Ad­min­is­tra­tive Re­gion ac­cel­er­ated from 1.9 per­cent in Oc­to­ber 2017 to 5.2 per­cent in Oc­to­ber 2018.

Ac­cord­ing to Philip­pine Statis­tics Au­thor­ity - Cordillera, Apayao has the sec­ond high­est in­fla­tion with 8.4 per­cent and Ifugao with 5.9 per­cent.

It can be noted the in­fla­tion rates of all prov­inces in the re­gion in Oc­to­ber 2018 sur­passed the in­fla­tion rates in pre­vi­ous years.

The prov­ince of Apayao posted the high­est ac­cel­er­a­tion with 8.2 per­cent­age points, folA

lowed by Kalinga with six per­cent­age points and Mt. Prov­ince with 4.2 per­cent­age points.

In­fla­tion rate is the rate of change in the av­er­age price level be­tween two pe­ri­ods year on year which in this case Oc­to­ber 2017 and 2018.

In­fla­tion mea­sures the rate of change on the price, not nec­es­sar­ily on the in­crease and de­crease but the per­cent­age of change in CPI every year.

By com­mod­ity group, in­fla­tion rate for food and non-al­co­holic bev­er­ages in­dex in the re­gion re­main the same.

Al­co­holic bev­er­ages and to­bacco had the high­est in­fla­tion among other com­modi­ties in the re­gion with 21.6 per­cent fol­lowed by health with 7.3 per­cent.

Mean­while, Con­sumer Price In­dex in the re­gion was 118.5 in Oc­to­ber 2018 which was higher by 5.9 in­dex points from 112.6 CPI of the same year.

CPI is the gen­eral mea­sure of the change in av­er­age re­tail prices of mar­ket bas­ket or col­lec­tion of goods and ser­vices com­monly pur­chased by the av­er­age Filipino house­hold.

Ac­cord­ing to the data arm agency, re­bas­ing CPI is nec­es­sary to en­sure that this barom­e­ter of eco­nomic phe­nom­ena is truly re­flec­tive of cur­rent sit­u­a­tion. Over time, con­sumer taste, fash­ion, tech­nol­ogy change caus­ing the fixed mar­ket bas­ket of goods and ser­vices to be­come out­moded.

To cap­ture such changes for a more mean­ing­ful price com­par­i­son, re­vi­sion or up­dat­ing of the fixed mar­ket bas­ket, sam­ple out­lets, weights, and base year had to be done pe­ri­od­i­cally.

Among the CAR prov­inces, Kalinga had the high­est CPI for Ocaware­ness to­ber 2018 with 123.6 fol­lowed by Apayao with 121.9 and Benguet with 119.5 Moun­tain Prov­ince poste the low­est CPI with 113.7

Al­co­holic bev­er­ages and to­bacco had the high­est CPI in the re­gion with 207.8 among the com­mod­ity groups with the prov­ince of Apayao in­curred the high­est CPI on al­co­holic bev­er­ages and to­bacco.

And ed­u­ca­tion reg­is­tered as the sec­ond high­est CPI among the com­mod­ity groups in the re­gion with 121. 8 in­dex points.

For the pur­chas­ing power of peso, a de­crease was recorded by five cen­tavos from 89 cen­tavos in Oc­to­ber 2017.

One peso in 2012 is worth 84 cen­tavos in Oc­to­ber 2018. A bas­ket of goods can be bought with 100 pe­sos in Oc­to­ber 2012 is worth P118.5 in Oc­to­ber this year, adds the PSA-Cordillera.

Photo by Jean Ni­cole Cortes

DE­FLAT­ING PESO. With A 5.2 per­cent in­fla­tion rate hit­ting the Cordillera re­gion, the peso’s pur­chas­ing power also de­creases. Ac­cord­ing to the Philip­pine Statis­tics Au­thor­ity in the re­gion, a bas­ket of goods can be bought with 100 pe­sos in Oc­to­ber 2012 is worth P118.5 in Oc­to­ber this year.

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