Thursday, June 18, 2020
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 May 2020 was 121.0. This was higher by 3.1 index points from the 117.9 CPI of May 2019 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: May 2020
- Among the CAR provinces, Kalinga posted the highest CPI for May 2020 at 127.1, followed by Apayao at 123.2, and Benguet at 120.9 while Mountain Province posted the lowest CPI at 118.9.
CPI by Commodity Groups
- Among the commodity groups, Alcoholic Beverages and Tobacco had the highest CPI in the region with 238.8 index points. The province of Apayao incurred the highest CPI on this commodity with 398.8 index points, followed by Abra, Kalinga, and Ifugao at 325.4, 299.7, and 241.8 index points, respectively.
- Education registered the second highest CPI among the commodity groups in the region for May 2020 at 128.0 index points. Among the provinces, Kalinga had the highest index on education at 193.9, while Apayao had the lowest at 65.7 index points.
- Clothing and Footwear ranked third at 127.8 index points. Kalinga recorded the highest index on clothing and footwear at 134.5, followed by Ifugao and Benguet at 133.3 and 127.6 index points, respectively.
- Transportation incurred the lowest CPI among the commodity groups in the region during the month of May 2020 with 101.0 index points. The province of Abra incurred the highest index on communication with 102.8 index points, while Mountain Province had the lowest with 94.8 index points.
- Among the CAR provinces, Kalinga incurred the highest CPI for all items with 127.1, while Mountain Province garnered the lowest index at 118.9 in May 2020.
Figure 2. Consumer Price Index by Commodity Group and by Province,
CAR: May 2020
- By index point change, Alcoholic Beverages and Tobacco recorded the highest increase at 21.0 index points. Increases were also incurred in Education (6.2 points), Clothing and Footwear (5.5 points), and Restaurant and Miscellaneous Goods and Services (4.1 points). The rest of the commodity groups reported minimal annual increases.
Figure 3. Year-on-Year Consumer Price Index by Commodity Group,
CAR: May 2019 and 2020
- The average increase in the prices of goods and services in the region increased by 2.6% in May 2020 from the 2.3% in May 2019.
- Mountain Province posted the highest inflation rate in May 2020 with 6.0%, followed by Kalinga with 3.7%. Apayao incurred the least inflation among all provinces with 1.1%.
- Benguet and Mountain Province had higher inflation rates in May 2020 compared to their inflation rates in May 2019.
Figure 4. Year-on-Year Inflation Rates by Province,
CAR: May 2019 and 2020
By Commodity Group
- Inflation rate of the heavily-weighted Food and Non-Alcoholic Beverages index in the region decreased by 1.4 percentage point from the April 2020 rate of 4.1 to 2.7 in May 2020.
Alcoholic Beverages and Tobacco remained to have the highest inflation in May 2020 among other commodities in the region with 9.6%, followed by Education with 5.1% and Clothing and Footwear with 4.5%.
Among all other commodities, Transport incurred the lowest inflation rate with negative 6.1%.
Figure 5. Inflation Rates by Commodity Groups, CAR: May 2020 (2012=100)
By Food Items, Year-on-Year
- Among the food items, Corn recorded the highest CPI in the region in May 2020 with 170.3. This was followed by Fruits, Fish and Vegetables with 150.7, 138.4, and 127.9 index points, respectively.
- By index point change, Fruits recorded the highest increase by 16.0. Fish followed with 13.4 index point increase followed by Vegetables with 9.6.
Figure 6. Year-on-Year CPI and Inflation Rates of Selected Food Items,
CAR: May, Year 2019 and 2020 (2012=100)
Purchasing Power of the Peso (PPP)
- The value of 1 peso in the region was 83 centavos in May 2020. It dropped by two centavos from 85 centavos in May 2019. This can be translated that a hundred pesos in 2012 was worth 83 pesos in May 2020.
- Also, a basket of goods that can be bought with 100 pesos in December 2012 is worth 121.0 pesos in May 2020.
- The PPP in all the provinces generally weakened in May 2020 compared to the same month of the previous year.
- Abra, Ifugao and Mountain Province had the highest peso value with 84 centavos, followed by Benguet with 83 centavos. Meanwhile, Kalinga had the lowest peso value with 79 centavos.
Figure 7. Worth of a Hundred Pesos by Province, CAR: May 2019 and May 2020