Consumer Price lndex

Consumer Price lndex (CPl) 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 City of Baguio in December 2022 was 1 16.7. Comparing to the previous month, index for the city increased by 0.3 points.

CPI by Commodity Groups
 

• Among the commodity groups, Financial Services still had the highest CPI at 135.4 index points, same index from the previous months.
   
• Alcoholic Beverages and Tobacco had the second highest CPI at 134.4 index points, also the same index from the previous month.
   
• Food and Non-Alcoholic Beverages ranked third among the commodity groups in the city at 129 index points. lt increased by 1.5 index points comparing from the previous month.
   
• Meanwhile, lnformation and Communication still had the lowest CPI among the commodity groups at the provincial level with 102.2 index points.

lnflation Rate

lnflation is a rise in the general leve! of prices of goods and services in an economy over a period of time. \Mren the general price level rises, each unit of currency buys fewer goods and services. A chief measure of price inflation is the inflation rate, the annualized percentage change in CPI over time.

Transport services still posted the highest inflation rate among the commodity groups at 16.9 percent. lt was followed by Food and non-alcoholic beverages at 13.4 percent, and Alcoholic beverages and tobacco at 9.6 percent.

lnflation rate of the following commodity groups were also as follows:

a. Housing, water, electricity, gas, and other fuels, 2.4 percent;
b. Personal care, and miscellaneous goods and services, 5.3 percent;
c. Furnishing, household equipment and routine household maintenance, 0.9 percent
d. Recreation, sport and culture,2.5 percent;
e. Health, 2.5 percent
f. Restaurant and accommodation services, 0.3 percent
g. lnformation and communication, 0.5 percent

Meanwhile, financial services, clothing and footwear, and education services had 0 percent inflation for this month.

Purchasing Power of the Peso (PPP)

Purchasing Power of Peso is a measure of the real value of peso in a given period relative to the base year. The nearer the base year to the current period, the higher the value of the peso derived. As the period goes farther from the base year, the value of peso diminishes as this is "eaten up" by the inflationary factors.

• The value of 1 peso in the city was 86 centavos in December 2022. This can be translated that one peso in 2018 was worth 86 centavos in December 2022.