5.2% inflation lashes CAR
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.
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.