CONSUMER PRICE INDEX ABRA: May 2022 (2018=100)

Release Date: 

Thursday, June 9, 2022

Reference Number: 

22CAR01-452

PRICE SITUATION: Year-on-Year

The Consumer Price Index (CPI) for all income household in Abra for May 2022 is 112.3. This implies that a household in Abra needs 12.3 pesos to purchase the same basket of goods worth 100 pesos in 2018.

This month’s CPI for all items is 4.8 higher than last years’s index. Changes in the prices of different commodities determine the fluctuations in the monthly CPI.

 

Transport recorded the highest price changes with a 22.1 percent increase. It is followed by Housing, Water, Electricity, Gas and Other Fuels with 6.7 percent and Alcoholic Beverages and Tobacco with 6.2 percent

 

All other commodities groups increased in prices, except the Clothing and Footwear commodity group which decreased by 0.4 percent.

 

Inflation Rate (IR)

Figure 2 below shows a difference of 2.1 percent increase on year-on-year comparison between May 2021 with 2.4 and May 2022 with 4.5 inflation rates, and a 0.9 percent increase compared to April 2022 with 3.6 inflation rate.

 

 

Figure 3 shows the trend of inflation rate in the province for the period May 2021 to May 2022. Inflation rate posted the least in January 2022 with 1.2 percent while its highest inflation rate was observed in September 2021 with 4.9 percent.

 

 

 

Concepts and Definitions

Consumer Price Index (CPI)

        The CPI is an indicator of the changes in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

Uses of CPI

         The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso. It is a major statistical series used for economic analysis and as a monitoring indicator of government economic policy.

Computation of CPI

                The computation of the CPI involves consideration of the following important points:

       a. Base Period- The reference date or base period is the benchmark orreference date or period at

            which the  index is taken as equal to 100.

       b. Market Basket- A sample of the thousands of varieties of goods purchased for consumption and

          services availed by the households in the country selected to represent the composite price behavior of all      

          goods and services purchased by consumers.

       c. Weighting System- The weighting pattern uses the expenditures on various consumers’ items purchased

           by households as a proportion to total expenditure.

       d. Formula-The formula used in computing the CPI is the weighted arithmeticmean of price relatives, the

           Laspeyre’s formula with a fixed based year period (2006) weights.

 

         Inflation Rate is the rate of change of the CPI expressed in percent. Inflationis interpreted in terms of

         declining purchasing power of peso.

 

         Headline Inflation refers to the rate of change in the CPI, a measure of theaverage standard “basket” of goods

         and services consumed by a typical family.

 

              Purchasing Power of Peso 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 under review multiplied by 100.

 

 

         

Attachments: 

Tags: 

Add new comment

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image.