Mountain Province CPI Geared Up in December 2022

Alcoholic Beverages and Tobacco Top the Index

By commodity group, Figure 1 shows that Alcoholic Beverages and Tobacco has the highest among the thirteen major commodity groups with consumer price index of 163.3 for the month of December 2022. Among its subgroups, tobacco has the highest price index with 210.4 while other vegetable-based tobacco products has a price index of 158.1.

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

Restaurant and Accommodation Services ranked second among the commodity groups with 156.7 index points. Food and Beverage Serving Services has the highest index point with 164.8 among its subgroups followed by Accommodation Services with 125.4 index point.

CPI for All Items Shows an Upward Trend

Inflation Rate by Month

Inflation in Mountain Province increased from 9.8 percent in November 2022 up to 10.3 percent in December 2022. In December of the previous year, inflation was lower at 3.3 percent. (Figure 3)

The acceleration in the inflation rate in December 2022 was primarily due to the higher annual growths in the food and non-alcoholic beverages at 11.4; restaurants and accommodation services at 14.0 and clothing and footwear at 5.7 percent respectively.

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On the contrary, inflation rates were lower for housing, water, electricity, gas and other fuels at 13.1 percent followed by transport at 17.2 percent respectively. The rest of the commodity groups changed in a minimal rate.

Purchasing Power of Peso (PPP) Slides

The Purchasing Power of the Peso (PPP) in the province for the month of December 2022 decreased at 0.79 centavos from its preceding month 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 December 2022. (Figure 4)

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Figure 4: Purchasing Power of Peso,

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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.

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.

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