Friday, August 27, 2021
Consumer Price Index
- Consumer Price Index (CPI) is the general measure of the change in the average retail prices of a market basket or collection of goods and services commonly purchased by the average Filipino household.
- The CPI of the Cordillera Administrative Region (CAR) in July 2021 was 126.1. This was higher by 4.9 index points from the 121.2 CPI of July 2020 using 2012 as base year.
- In general, the CPI increased reflecting the rise in the average prices of goods and services in all the six provinces of CAR.
Figure 1. Consumer Price Index by Province,
CAR: July 2021 (2012=100)
- Among the CAR provinces, Kalinga posted the highest CPI for July 2021 with 133.8, followed by Apayao with 129.6 and Ifugao with 126.8 while Mountain Province posted the lowest CPI with 122.1
CPI by Commodity Groups
- Among the commodity groups, Alcoholic Beverages and Tobacco had the highest CPI in the region with 260.9 index points. The province of Apayao incurred the highest CPI on this commodity with 456.1 index points, followed by Abra, Kalinga, and Ifugao with 365.0, 358.0, and 270.8 index points, respectively.
- Clothing and Footwear ranked second among the commodity groups in the region for July 2021 with 132.3 index points. Among the provinces, Kalinga had the highest index on clothing and footwear with 142.0, while Apayao had the lowest with 127.6 index points.
- Education registered the third highest CPI with 128.9 index points. Kalinga recorded the highest index on education with 193.9, followed by Mountain Province and Benguet with 129.4 and 128.5 index points, respectively.
- Communication incurred the lowest CPI among the commodity groups in the region during the month of July 2021 with 102.4 index points. The province of Abra incurred the highest index on communication with 105.0 index points, while Mountain Province had the lowest with 98.0 index points.
- Among the CAR provinces, Kalinga incurred the highest CPI for all items with 133.8, while Mountain Province garnered the lowest index with 122.1 in July 2021.
Figure 2. Consumer Price Index by Commodity Group and by Province,
CAR: July 2021
- By index point change, Alcoholic Beverages and Tobacco recorded the highest increase with (17.4 points). Increases were also incurred in Food and Non-alcoholic Beverages (6.8 points), Restaurant and Miscellaneous Goods and Services (6.2 points), Transport (4.6 points), The rest of the commodity groups reported minimal annual increases.
Figure 3. Year-on-Year Consumer Price Index by Commodity Group,
CAR: July 2020 and 2021 (2012=100)
- The average increase in the prices of goods and services in the region was 4.0% in July 2021, higher by 1.7 percentage point with the inflation of 2.3% in July 2020.
- Kalinga posted the highest inflation rate in July 2021 with 5.7%, followed by Ifugao and Apayao with 5.6% and 4.9%, respectively. Abra incurred the lowest inflation among all CAR provinces with 2.3%.
- Only Abra had lower inflation rate for July 2021 compared to July 2020. All remaining provinces recorded higher inflation rates for July 2021 compared to July 2020.
Figure 4. Year-on-Year Inflation Rates by Province,
CAR: July 2020 and 2021 (2012=100)
By Commodity Group
- Inflation rate of the heavily-weighted Food and Non-Alcoholic Beverages increased by 0.7 percentage points from the June 2021 rate of 4.9% to 5.6% in July 2021.
- Alcoholic Beverages and Tobacco remained to have the highest inflation rate among other commodities in the region with 7.1% in July 2021 followed by Food and Non- Alcoholic Beverageswith 5.6%, and Restaurant and Miscellaneous Goods and Services with 5.1%.
Figure 5. Inflation Rates by Commodity Groups, CAR: July 2021 (2012=100)
- Among all other commodities, Recreation and Culture incurred a deflation (decrease in the general price level of goods and services; occurs when the inflation rate falls below 0% - a negative inflation rate) with 0.2%.
By Food Items, Year-on-Year
- Among the food items, Corn recorded the highest CPI in the region in July 2021 with 188.8 index points. This was followed by Meat, Fish and Fruits with 151.6, 146.5, and 146.2 index points, respectively.
- By index point change, Meat recorded the highest with 22.7. Corn followed with 13.8 index point increase followed by Fish with 9.5 index point decrease. Milk, Cheese and Eggs posted the lowest index point change with 0.1 points.
Figure 6. Year-on-Year CPI and Inflation Rates of Selected Food Items,
CAR: July, Year 2020 and 2021 (2012=100)
Purchasing Power of the Peso (PPP)
- The Purchasing Power of the Peso (PPP) in all the provinces generally weakened in July 2021 compared to the same month of the previous year.
- The value of 1 peso in the region was 79 centavos in July 2021. It dropped by four centavos from 83 centavos in July 2020. Mountain Province had the highest peso value with 82 centavos, followed by Abra with 81 centavos. Meanwhile, Kalinga had the lowest peso value with 75 centavos.
- Conversely, a basket of goods that can be bought with 100 pesos in December 2012 is worth 126.1 pesos in July 2021.
- Also, the hundred pesos in 2012 was worth 79 pesos in July 2021.
Figure 7. Worth of a Hundred Pesos by Province,
CAR: July 2020 and July 2021 (2012=₱100)