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Republic of the Philippines

Philippine Statistics Authority
Guimaras Provincial Statistical Office

SPECIAL RELEASE
Guimaras’ 7 months inflation in 2019 slower than 2018

Date of Release : September 6, 2019

Reference No. : 2019- 20

Guimaras’ inflation rate in

the first 7 months (January-July)
of 2019 is slower compared to
2018 due to the decelerated
indices of food and non-food
commodity groups.

Comparing the inflation

levels of the first 7 months of the
years 2018 vs. 2019, the later
showed continuous slowdown
during the first quarter (opposite
direction than in Q1 of 2018).
However, it showed irregular
movement in succeeding months after the first quarter. It inched up in April at 2.6
percent, then plunged to 1.2 in May, rose at 4.1 in June and then slowed in July to
2.7, thus translating to 34.1 percent decrement.
Similarly, the 2018 inflation consistently increased its rate in the first three
months, but displayed erratic trend during the second quarter which settled at 4.5
percent in the 4th month, then marked up to 6.4 in the 5th month, slowed at 5.1 in the
6th month, then spiked up to 6.8 in the 7th month.
Based on the month on month inflation rate in 2019, the 2.7 drop in July was
driven by three (3) commodity groups, namely:
 Food and Non-alcoholic Beverages decreased at 127.9 from an index of 128.2
in June translating to 0.2% decrement;
 Housing, Water, Electricity, Gas, and Fuels cut down by 0.1% from 121.6 in
June to 121.5 in July and;
 Transport receded at 1.1% from 99.8 in June to July’s 98.7 index.
It was also observed that there were four (4) subgroups in the commodity of
food which pulled down the overall index of Food and Non-alcoholic Beverages item
to include the following: (see Table 1)

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 Corn posted at 135.5 in June to 134.9 in July;

 Fish at 125.8 in June to 122.4 in July;
 Vegetables at 176.3 in June to 173.7 in July and;
 Food Products N.E.C. at 113.7 in June to 113.3 in July.

Table 1. CPI and Inflation Rate of FOOD AND NON-ALCOHOLIC BEVERAGES,

June & July 2019
CPI Inflation
Commodity Group June 2019 July 2019 Rate

* Food 128.2 127.9 -0.2

Bread and Cereals 121.9 122.3 0.3

Rice 123.7 124.1 0.3

Corn 135.5 134.9 -0.4

Other Cereals, Flour, Cereal 113.6 114.0 0.4

Preparation, Bread, Pasta & Other
Bakery Products
Meat 128.4 128.9 0.4

Fish 125.8 122.4 -2.7

Milk, Cheese and Eggs 116.8 117.4 0.5

Oils and Fats 106.7 106.7 0.0

Fruit 161.0 167.3 3.9

Vegetables 176.3 173.7 -1.5

Sugar, Jam, Honey, Chocolate 111.4 111.7 0.3

and Confectionery
Food Products N.E.C. 113.7 113.3 -0.4
* Non-alcoholic Beverages 127.7 127.8 0.1

Moreover, another commodity group which contributed to the slower inflation

in July is the drop in the indices of Housing, Water, Electricity, Gas, and Fuels from
106.3 in June to 106.1 in July. (See Table 2)

Table 2. CPI and Inflation Rate of HOUSING, WATER, ELECTRICITY, GAS AND
OTHER FUELS , June & July 2019
CPI Inflation
Commodity Group June 2019 July 2019 Rate

Actual Rentals for Housing 128.4 128.4 0.0

Maintenance and Repair of the Dwelling 127.5 127.6 0.1

Water Supply and Miscellaneous Services 98.2 98.2 0.0

Relating to the Dwelling
Electricity, Gas and Other Fuels 106.3 106.1 -0.2

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Likewise, the last commodity group which put the inflation down in the 7th
month of 2019 was the Transport, under of this item wherein Transport Services got a
downturn of 6.3 percent from 104.9 in June to 98.3 in July. (See Table 3)

Table 3 . CPI and Inflation Rate of HOUSING, WATER, ELECTRICITY, GAS AND
OTHER FUELS, June & July 2019
CPI Inflation
Commodity Group June 2019 July 2019 Rate

Operation of Personal Transport 94.8 96.4 1.7

Equipment
Transport Services 104.9 98.3 -6.3

Inflation rates across Provinces of WV: July 2018 & 2019

Comparing inflation rates among provinces of Western Visayas region for the
first seven months of 2018 and 2019, Guimaras ranked third as to the highest
inflation rate with 2.7 percent in July 2019. As to its lowest, Antique placed first with
1.2 percent, Iloilo followed secondly with 1.3 percent and, Aklan landed third with a
rate of 2.8 percent. On the other hand, the fastest inflation rate was seen in Negros
Occ. with 4.1 percent.
Moreover, during
the month of July 2018,
Guimaras ranks second
among provinces with
the fastest inflation rate
of 6.8 percent and still
Negros Occidental got
the highest with 7.2
percent. However, both
Iloilo and Aklan showed
an inflation rate of 5.5
percent, followed by
Capiz (5.6%) and
Antique (6.3%).

Consumer Price Index, all items: July 2018 and 2019

Table 4. Consumer Price Index, by Commodity Group: July 2018 and 2019 (2012=100)
Commodity Group July %
2018 2019 Change
All Items 117.0 120.2 2.7

Food and Non-Alcoholic Beverages 122.2 127.9 4.7

Alcoholic Beverages and Tobacco 210.3 228.2 8.5

Clothing and Footwear 111.4 115.2 3.4

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Housing, Water, Electricity, Gas & Other Fuels 119.7 121.5 1.5
Furnishings, Household Equipment and Routine 132.6 134.3 1.3
Maintenance of the House
Health 110.9 112.8 1.7
Transport 98.7 98.7 0.0

Communication 99.9 99.9 0.0

Recreation and Culture 99.1 104.2 5.1

Education 116.6 118.1 1.3

Restaurant and Miscellaneous Goods and Services 109.0 112.9 3.6

The CPI all items in the 7th month of 2018 and 2019 consistently increased from
an index of 117.0 in 2018; it went up by 2.7 percent in this year’s 120.2 index.

Faster year on year increment was noted in all commodity groups in July 2019,
thus, it simply showed that the cost of living of a typical Guimarasnon is getting higher
every year. (See Table 4)

Purchasing Power of the Peso

The average Purchasing Power of the Peso (PPP) in Guimaras had been
weakening.

The average PPP in the first seven months of 2019 was at 0.84 which is lower
than the previous year’s 0.87. This only mean that the purchasing power of the peso
depreciated, wherein the one peso in 2012 now valued at 0.84 centavos was lower
than the 0.87 centavos in 2018. (See Table 5)

Table 5. Monthly Purchasing Power of the Peso, Guimaras: 2018 & 2019 (2012=100)

Month 2019 2018

Jan 0.86 0.88

Feb 0.86 0.88
Mar 0.85 0.87
Apr 0.84 0.87
May 0.84 0.85
June 0.83 0.87
July 0.83 0.85
Average 0.84 0.87

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Definition of Terms

Inflation Rate is the rate of change or the year-on-year change in the consumer price
index.
Formula:

Inflation rate =CPI2/CPI1

x 100
CPI1
Where:

CPI2 – is the CPI in the second period

CPI1 – is the CPI in the previous period

The Consumer Price Index (CPI) is an indicator of the change in the average prices of a
fixed basket of goods and services commonly purchased by an average Filipino household for
their day-to-day consumption relative to a base year. It is most widely used in the calculation
of the inflation rate and purchasing power of the peso (PPP). Relative to this, daily, weekly
and bi-monthly price surveys were conducted nationwide at the provincial offices including
the District Offices of the National Capital Region (NCR) to be able to generate monthly CPI
for All Income Households and CPI for the Bottom 30% Income Households. Indicators
produced from price surveys are regarded as designated statistics. The seasonally adjusted
CPI provides comparisons after removing the seasonal variations that may affect the series.

The formula used in computing the CPI is the weighted arithmetic mean of price relatives,
the Laspeyre’s formula with a fixed base year period (2006) weights.

Formula:
CPI =sum [(PnPo)W]
X100
Sum (W)
where:
Pn = current price
Po = base period price
W = PoQo = weights
The Purchasing Power of the Peso (PPP) gives an indication of how much the Philippine
peso is worth in a given period relative to its value in a base period. It is computed by
getting the reciprocal of the CPI and multiplying the result by 100.
PPP = 1 x100
CPI

Headline Inflation is the rate of change in the weighted average prices of all goods and
services in the CPI basket while Core Inflation refers to the rate of change in the CPI which
excludes the following item/commodity groups: rice, corn, fruits and vegetables, and fuel
items.

NELIDA B. LOSARE
Chief Statistical Specialist
Provincial Statistics Office- Guimaras

2nd Floor Galanto Bldg., New Site, San Miguel, Jordan, Guimaras
Email Add: psaguimaras@gmail.com
Tel. No. (033) 331-2844