Consumer Price Index (CPI) in Mountain Province: May 2022

Reference Number: 

22CAR44-170

Release Date: 

Friday, June 10, 2022

 

Consumer Price Index (CPI) in Mountain Province:

 May 2022

Mountain Province CPI Geared Up in May 2022

The Consumer Price Index of Mountain Province for the month of May 2022 was 118.8 using 2018 as base year. This is 0.9 index points higher compared to its preceding month with CPI=117.9 and 7.8 index points higher as compared to the same month of 2021 with 111.0 price index.

Table 1: Monthly CPI for All Income Households by Commodity Group,

Mountain Province: May 2022

(2018 = 100)

Commodity Group

May

 2021

May

 2022

All Items

111.0

118.8

Food and Non-alcoholic Beverages

108.3

113.2

Alcoholic Beverages and Tobacco

149.1

159.3

Clothing and Footwear

110.2

115.9

Housing, water, electricity, gas and other fuels

113.7

131.1

Furnishings, Household Equipment and Routine Maintenance

118.2

123.4

Health

106.4

109.2

Transport

107.1

126.6

Information and Communication

99.2

99.5

Recreation, Sport and Culture

105.9

105.3

Education Services

105.3

105.3

Restaurant and Accommodation Services

129.9

141.9

Financial Services

100.0

100.0

Personal Care, and Miscellaneous Goods and Services

112.2

115.0

 

Alcoholic Beverages and Tobacco Top the Index

By commodity group, Figure 1 shows that Alcoholic Beverages and Tobacco had the highest among the thirteen major commodity groups with consumer price index of 159.3 for the month of May 2022. This means that the cost of Alcoholic Beverages and Tobacco has increased by 59.3 percent since year 2018.

Among its subgroups, tobacco had the highest index with 201.2 index points while other vegetable-based tobacco products had a price index of 168.4 for the month of May 2022 respectively.

 

Figure 1: Consumer Price Index for All Income Households in Mountain Province:

May 2022

(2018 = 100)

 

Restaurants and Accommodation Services ranked second among the commodity groups with 141.9 index points for the month of May 2022. Food and Beverage Serving Services had an index point with 150.9 among its subgroups followed by Accommodation Services with 106.8 index points.

Housing, water, electricity, gas and other fuels ranked third with an index point of 131.1. Among its subgroups, electricity, gas and other fuels had the highest index point of 156.1 while the water supply and miscellaneous services relating to dwelling retained the previous months index points for the month of May 2022.

Transport with index points of 126.6 while Information and Communication incurred the lowest CPI in the province during the month with a stable index point of 99.5 respectively.

Within the Food and non-alcoholic beverages subgroup, vegetables, tubers, cooking bananas and pulses registered the highest index with 18.6 for the month. On the other hand, the Rice had the lowest index point of -0.2 respectively. 

 

CPI for All Items Shows an Upward Trend in the month of May 2022

Figure 2 shows the consumer price index for All Items in the province for the month of May 2021 and 2022. The indices for All Items showed an increasing trend in the said month with index points 111.0, and 118.8 in that order.

By index point change, All Items had an increase of 7.8 from 111.0 index points in May 2021 to 11.8 in the same month of 2022

 

Figure 2: Consumer Price Index by Commodity Group,

Mountain Province: May 2021 and May 2022

(2018 = 100)

 

Specifically, transport recorded the highest increase with 19.5 points followed by Housing, water, electricity, gas, and other fuels, Restaurants and Accommodation Services and Alcoholic Beverages and Tobacco which also increased by 17.4, 12 and 10.2 index points in that order.

 

Education did not show changes in index points while Recreation, Sport and Culture showed negative change with -0.6 index points respectively.

 

Inflation Rate by Month

Inflation in Mountain Province increased further from 5.9 percent in April 2022 to 7.0 percent in May 2022. In May of the previous year, inflation was lower at 5.1 percent. (Figure 3)

The acceleration in the province inflation rate in May 2022 was primarily due to the higher annual growths in the food and non-alcoholic beverages index at 4.5 percent, and housing, water, electricity, gas and other fuels index at 15.3 percent respectively. The following commodity groups also contributed to the upward trend of the inflation during the month:

a.    Transport, 18.2 percent;

b.    Housing, Water, Electricity, Gas and other Fuels, 15.3 and

c.    Alcoholic Beverages and Tobacco, 6.8 percent.

 

Figure 3: Inflation Rate by Month,

Mountain Province: May 2021 - May 2022

(2018 = 100)

On the contrary, inflation rates were lower for Restaurants and accommodation at 9.2 percent. The rest of the commodity groups retained their previous month’s inflation rates.

The uptick in the food inflation was primarily influence by the vegetables, tubers, plantains, cooking bananas and pulses index at 18.6 percent and oils and fats index at 12.9 percent. The indices for corn, ready-made food and other food products n.e.c. and sugar, confectionery and desserts down by 3.8, 8.5, 5.4 percent in that order.

 

Purchasing Power of Peso (PPP) Slides

The Purchasing Power of the Peso (PPP) in the province for the month of May 2022 decreased to 0.84 centavos as compared to its preceding month with 0.85 centavos and decreased by .06 centavos compared to the same month of the previous year. Thus, hundred pesos in 2018 was worth 84 pesos in the month of May 2022. 

 

Figure 6: Purchasing Power of Peso,

Mountain Province: May 2021 - May 2022

(2018 = 100)

 

Technical Notes

Consumer Price Index (CPI) A single number used to measure changes in the average retail prices of a market basket or collection of goods and services commonly purchased by an average Filipino household. It shows how much on the average, prices of goods and services have increased or decreased from a particular reference period known as base year.

The CPI measures the changes in the price level of goods and services that most people buy for their day-to-day consumption relative to a base year (currently at year 2018)

It is widely used in the calculation of the inflation rate and purchasing power of the peso.  Changes in the CPI over a specified period of time (usually a month or a year), is the rate of inflation. Inflation is equivalent to a decline in the purchasing power of peso (PPP).

The Purchasing Power of Peso (PPP) gives an indication of the real value of the peso (how much it is worth) in a given period relative to its value in a base period. Or it measures how much the peso in the reference year is worth in another year.

Inflation Rate (IR) is the rate of change in the average price level between two periods (year-on year/month-on-month as measured by the CPI).

Base Year (BY) is the reference point of the index number series, at which the index number is set to zero.

 

JERRY G. SANTOS

Chief Statistical Specialist

 

 

JGS/EAC

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