Price Situation in Capiz (January-June 2019)

Reference Number: 

2019-25

Release Date: 

Monday, September 9, 2019 - 22:00
CONSUMER PRICE INDEX (2012 = 100)
 
The Consumer Price Index (CPI) for all income households in Capiz hits 116.9 in the month of June 2019, the highest in the first semester of 2019 and this was 0.6 % higher compared to previous month and 1.2 % up when compared to March 2019 the end of first quarter of 2019, and it was further up by 1.6 % when compared to January 2019 index which is the lowest in the semester.
 
The movement of CPI in the first semester of 2019 is in a very slow upward trend until the end of first semester of 2019. The heavily weighted Food
and Non Alcoholic Beverages goes up only by 0.1 percent in the beginning of the first semester of 2019 up to March of 2019 but increased further by 0.5 percent from March 2019 up to the end of the semester.
 
Among the commodities that belong to the group Fish registered the highest increase from January to March 2019 but only a measly 0.9 percent increase followed by Rice with 0.2 percent increase during the first quarter of 2019 The CPI for the province started to push up more rapidly from March 2019 towards the end of the first semester of 2019. This was bannered by one of the heavily weighted commodity particularly Corn which has escalated by 2.4 percent from March 2019 to June 2019, along with Food Products NEC and Fish which upsurge by 2.1 percent and 1.6 percent respectively during the last three months of the first semester of 2019. On the other hand only Sugar, Jam, Honey Chocolate and Confectionery index posted a drop of 2.9 percent during the said period, while the indices of the rest of the items that belong to this group have posted a steady but negligible increase. Also NonAlcoholic Beverages posted an increase of 0.5 percent during the semester Meanwhile Tobacco posted a staggering 14.4 percent rise during the first semester of 2019, along with Alcoholic beverages which also posted a significant increase of 2.2 percent compared six months ago.
 
For the non-food and services items, a stunning ascent of 4.7 percent from Furnishing, Household Equipment and Routine Maintenance of the House which can be attributed to high rise cost of Goods and Services of Household Maintenance followed by Education with an astonishing 4.6 percent increase during the said semester which can be qualified from the increase in tuition fees in particular in Primary and Secondary Education together with Health with 4.4 percent increase which can be ascribe to the increase of doctors charges and the rise of hospital room rates, along with Transport and Housing Water Electricity Gas and other Fuels with 3.2 percent and 1.8 percent growth respectively during the first half of 2019.
 
Meanwhile other commodity items under this group have negligible increase or remained the same for the first six months of 2019. The CPI movement in the last six month of 2018 is very irregular as the Food and Non Alcoholic Beverages went up by 3.3 percent in the beginning of the second semester up to October of 2018. In particular, Sugar, Jam, Honey Chocolate and Confectionery registered an astounding increase of 7.7 percent from July to October 2018 followed by Bread and Cereals with 4.9 percent increase together with Vegetable with 4.6 percent from July to October 2018. Also NonAlcoholic beverages registered an increase of 4.7 percent during the said period.
 
After that the CPI for the province started to fall off from October to December of 2018 This was expected due to the slowing down of index of the heavily weighted commodity particularly Rice which dropped by a stunning 2.5 percent from October 2018 to December 2018 while the indices of the rest of the items that belong to this group have posted a steady but negligible increase. Meanwhile Alcoholic beverages and tobacco posted a noteworthy change of 2.3 percent increase compared six months ago.
 
For the non-food and services items, a decline of 0.3 percent is registered as this happens that most of the commodity items under this group remained the same for the last six months of 2018, with the exception of Recreation and Culture with 1.6 percent increase along with Clothing and Footwear and Housing, Water, Electricity, Gas and other Fuels with a measly 0.6 percent and 0.2 percent growth in the last semester of 2018. Meanwhile, Transport is the only one that suffered a regression of 2.6 percent during the last six month of 2018.
 
On a semester to semester average index it can be noted that the combined heavily – weighted food and non-alcoholic beverages average index in the province went up by 1.5 percent compared to previous six months average. This was led by Fish with 5.3 percent average increase; along with Fruit and Vegetables with 3.7 percent and 2.4 percent average increase compared to the second semester of 2018. Non-Alcoholic Beverage also posted an average growth of 2.2 percent, while Alcoholic beverages and Tobacco posted a significant change of 5.3 percent average increase compared to the previous six months average.
 
In the non-food and services commodity groups, in terms of semester average index a notable change were seen in the average index of Furnishing, Household equipment and Routine Maintenance of the House with 2.4 percent increase, when compared to six months ago average index, followed by Health with 1.3 percent average increase, Clothing and Footwear along with Education with 1.1 percent and 0.8 percent average increase during the said period. With the exception of Transport where its average index droped by 1.5 percent when compared to its average index in the previous six months average index All the indices of the rest of the items that belong to this group have posted a steady but negligible average increase.
 
Inflation Rate
 
The inflation rate in Capiz continued to slowly slide down in the first five months of 2019 only to push up slightly in the last month of the first semester of 2019.The highest inflation rate in the province in 2019 was registered in January 2019 with 5.2 percent this is 2.0 percentage up when compared to the month of May inflation rate of 3.2 percent and 1.8 percentage up when compared to the month of June inflation rate of 3.4 percent The highest inflation rate between the last semester of 2018 and the first semester of 2019 was in October 2018 with 6.7 percent while the lowest was in May 2019 inflation rate with 3.2 percent.
 
Purchasing Power of the Peso (PPP)
 
As the Consumer Price Index in the province continue its slow slide for the first five months of 2019, the purchasing power of the peso (PPP) went steady in the first four months of the year 2019 at 0.87 then pushed down slightly at 0.86 in the last two months of the first semester of 2019. The PPP of the province of Capiz remains very steady at the start of the second semester 2018 with 0.88 in July 2018 then settle down until the end of the second semester 2018 at 0.87.
 
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 2012.
 
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.