Mountain Province CPI Geared Up in October 2022
The Consumer Price Index of Mountain Province for the month of October 2022 is 124.6 using 2018 as base year. This is 1.7 index points higher compared to its preceding month with CPI=122.9 and 11.3 index points higher as compared to the same month of 2021 with 113.3 price index.
|Commodity Group||October 2021||October 2022|
|Food and Non-alcoholic Beverages||109.4||119.3|
|Alcoholic Beverages and Tobacco||149.6||162.1|
|Clothing and Footwear||111.9||118.4|
|Housing, water, electricity, gas and other fuels||119.9||140.4|
|Furnishings, Household Equipment and Routine Maintenance||121.0||126.4|
|Information and Communication||99.2||99.8|
|Recreation, Sport and Culture||104.6||108.7|
|Restaurant and Accommodation Services||137.5||153.0|
|Personal Care, and Miscellaneous Goods and Services||113.1||116.2|
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 162.1 for the month of October 2022. Among its subgroups, tobacco had the highest price index with 209.6 index points while other vegetable-based tobacco products had a price index of 156.5 for the month of October 2022.
Restaurant and Accommodation Services ranked second among the commodity groups with 153.0 index points. Food and Beverage Serving Services had the highest index points with 163.6 among its subgroups followed by Accommodation Services with 111.9 index points.
Transport ranked third with index points of 135.0 Among its subgroups, operation of personal transport equipment had the highest index points of 142.3 followed by passenger transport services with index points of 140.7
Health with index points of 107.9 while Information and Communication incurred the lowest CPI in the province during the month with index point of 99.8.
CPI for All Items Shows an Upward Trend
Figure 2 shows the consumer price index for All Items in the province for the month of October 2021 and 2022. The indices for All Items showed an increasing trend for the said month with index points 113.3, and 124.6 in that order.
By index point change, All Items had an increase of 11.3 from 113.3 index points in October 2021 to 124.6 in the same month of 2022.
Transport recorded the highest increase with 23.0 points followed by Housing, water, electricity, gas and other fuels; Restaurants and Accommodation Services, and Alcoholic Beverages and Tobacco which increased by 20.5, 15.5 and 12.5 index points respectively.
Financial Services did not show changes in index points while health decreased by -0.4 index points.
Inflation Rate by Month
Inflation in Mountain Province increased further from 9.1 percent in September 2022 to 10.0 percent in October 2022. In October of the previous year, inflation was lower at 5.7 percent. (Figure 3)
The acceleration in the inflation rate in October 2022 was primarily due to the higher annual growths in the food and non-alcoholic beverages at 9.0; furnishings, household equipment and routine household maintenance at 4.5 and recreation, sport and culture with index at 3.9 percent respectively.
On the contrary, inflation rates were lower for housing, water, electricity, gas and other fuels at 17.1 percent followed by transport at 20.5 percent and clothing and footwear at 5.8 percent respectively. The rest of the commodity groups change in a minimal rate.
Purchasing Power of Peso (PPP) Slides
The Purchasing Power of the Peso (PPP) in the province for the month of October 2022 decreased to 0.80 centavos compared to its preceding month with 0.81 centavos and decreased by 8 centavos compared to the same month of the previous year. Thus, hundred pesos in 2018 is worth 80 pesos for the month of October 2022. (Figure 4)
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.
Market Basket (MB) is a sample of goods and services used to represent all goods and services produced or bought.
The monthly Consumers Price Index is computed based on the average retail prices of goods and services collected during the first week and mid-month of the reference month.
Retail Price - the actual price at which retailers sell a commodity on spot or earliest delivery, usually in small quantities for consumption and not for resale. It is confined to transactions on cash basis in the free market and excludes black-market prices and prices of commodities that are on sale as in summer sales, anniversary sales, Christmas sales, etc.