Price Situation in Capiz (2nd Quarter 2019)

Reference Number: 

2019-22

Release Date: 

Wednesday, July 24, 2019 - 21:30
CONSUMER PRICE INDEX (2006 = 100)
 
The Consumer Price Index (CPI) for all income households in Capiz hit at 116.9 index point in June the highest in the first half of 2019 and 0.6 percent higher compared in May of 2019 and 1.1 percent higher if compared in the month of April 2019 or the beginning of the second quarter of 2019 this steady big push of the provincial CPI during the second quarter of 2019 can be attributed to some of the item that belongs to the heavily weighted commodity of Food and Non-Alcoholic Beverages who have stunning increase during the period. These were bannered by Vegetable with 2.7 percent increase followed by Food Product NEC with 2.1 percent, Fish with 1.2 percent, Meat with 0.7 percent, Milk, Cheese and Eggs together with Oils and Fats with an identical 0.5 percent increase during the second quarter of 2019. Only Sugar, Jam, Honey Chocolate and Confectionery registered a negative growth during the period with 0.9 precent While the rest of the items that belongs to the commodity group had neither remained the same or had negligible increase during the said period. Also Alcoholic Beverages and Tobacco boosted the provincial CPI with a staggering 9.4 percent increase
during April to June of 2019. 
 
For the non-food and services items, a significant adjustment were noticed in Education with 4.6 percent increase during the second quarter of 2019 on which it can be ascribed to the numerous private school in the province implemented a tuition fee increases particularly in Primary/Elementary and Secondary education level. This was followed by Health with 3.5 percent surge during the period, this was expected after some private hospitals increase their services rate in particular the hospital room rates last June of 2019. Furnishings, Household Equipment and Routine Maintenance of the House followed with 1.9 percent, Housing, Water, Electricity, Gas and Other fuels with 1.7 percent along with Clothing and Recreation and Culture with 0.7 and 0.3 percent increase during the second quarter of the year 2019, with the rest of the items that belongs to the group have either negligible increase or retained their monthly rates during the said period.
 
The almost static mode of the provincial CPI during the first quarter of 2019 can be attributed to the heavily weighted commodity of Food and Non-Alcoholic Beverages which remained steady during the first three months of 2019. Considerable change where only noted in fruits with 0.9 percent increase during the period, followed by Bread and Cereals with only 0.2 percent rise during the said quarter. While the rest of the items that belongs to the commodity group had neither remained the same or had negligible increase during the said period except for Vegetable and Meat which registered a negative rate of 0.4 percent and 0.1 percent respectively during the first quarter of 2019. Meanwhile Alcoholic Beverages and Tobacco able enhanced the provincial CPI but with only 1.8 percent increase during January to March of 2019. 
 
For the non-food and services items, Transport showed a noteworthy adjustment of 2.9 percent increase during the first three months of 2019 on which it can be attributed to the continuous price increases of prices of spare parts of private owned vehicle during the said period, followed by Furnishings, Household Equipment and Routine Maintenance of the House with 2.1 percent increase, together with Health, Clothing and Footwear with 0.9 and 0.7 percent increase respectively during the period., while Housing, Water, Electricity, Gas and Other fuels,; Communication; Recreation and Culture; Education; and Restaurant and Miscellaneous Good and Services have either negligible increase or retained their monthly rates during the first quarter of 2019.
 
In terms of Quarterly Average Index, it can be noticed that the average Consumer Price Index for all income households in the second quarter of 2019 amplified only by 0.8 percent compare to the first quarter of 2019 This can be qualified to the 0.1 percent minimal average increase of the heavily weighted Food and Non-Alcoholic Beverages during the second quarter of 2019. With only Fruits and Fish show sign of escalation with 1.1 percent and 0.9 percent average increase respectively during the said period. The rest of the commodity that belongs to this group either had slower growth or remained the same in average index compared to average index in the first quarter of 2019 Meanwhile Sugar, Jam, Honey Chocolate and Confectionery took a plunge of 2.6 percent together with Vegetable and Meat with 1.3 and 0.1 decrease in terms of average index when compared to the first quarter of 2019 average index. While Alcoholic Beverages and Tobacco average index also escalated by 7.4 percent when compared to the first quarter of 2019 average index. 
 
For the non-food and services commodity groups, significant change were noticed in Transport with staggering 3.3 percent increase in terms of average index compared to previous quarter, followed by Furnishings, Household Equipment and Routine Maintenance of the House also with astounding 2.7 percent increase, together with Health and Education with 1.9 and 1.5 percent growth respectively. While the rest of the items that belongs to the commodity groups in terms of average index had either remained the same or had slight increase compared to the average index three months ago.
Inflation Rate
 
The provincial inflation rate of Capiz hits 5.2 percent in the beginning of first quarter of 2019 the highest for the quarter and in the last six
months. This is 1.1 percent higher if compared to February 2019 inflation rate of 4.1 percent and 1.4 percent greater if compared to March of 2019, as it continue to slide down up to the middle of the second quarter of 2019 hitting 3.2 percent inflation rate in the month of May 2019 the lowest in the last six month then accelerate to 3.4 percent inflation in the end of the second quarter of 2019.
 
Purchasing Power of the Peso (PPP)
 
With the Inflation rate for the province of Capiz significantly going downward beginning in the first quarter of 2019 up to the middle of the second quarter of the year 2019 the Purchasing Power of the Peso (PPP) maintained its strength of 0.87 from January 2019 up to April 2019 then slip to 0.86 in May 2019 up to the end of the second quarter of the year 2019. 
 
CONCEPTS AND DEFINITIONS
 
CONSUMER PRICE INDEX (CPI)
A measure of the change in the average price level of goods and services that most people buy for their day-to-day consumption.
It measures the composite change in the consumer prices of various commodities over time.
 
COMPONENTS OF THE CPI
Market Basket - A sample of the variety of goods and services commonly consumed by an average Filipino household to represenrt the price behavior of all goods and services bought by consumers.
Weight - Value attached to a commodity or group of commodities depending on the magnitude of its contribution to the index.
Base Period - A reference year at which the index is equal to 100. The present base period/year used is 2006.
 
INFLATION RATE
It is the annual rate of the change or the year-on-year changes in the average retail prices.
 
PURCHASING POWER OF THE PESO (PPP)
It shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period in review multiplied by 100.