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 Province of Benguet in December 2022 was 120.4, increased by 0.5 index points from the 119.9 index last November 2022.

CPI by Gommodity Groups

• Among the commodity groups, Financial Seruices still had the highest CP! at 146.0 index points. lt recorded a constant 146.0 CPI starting January 2022.
• Transport Services ranked second among the commodity groups in the province at 142.2 index points in December 2022. lt decreased by 3.4 index points comparing from the previous month. 
• Alcoholic Beverages and Tobacco registered the third highest CPI at 129.5 index points, increased by 1.7 index points from the previous month.
• Meanwhile, lnformation and Communication still had the lowest CPI among the commodity groups at the provincial level with 103.0 index points.
   

Inflation Rate

lnflation is a rise in the general level of prices of goods and services in an economy over a period of time. U/hen 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 posted the highest inflation rate among the commodity groups at 16.5 percent. lt was followed by Food and nonalcoholic beverages at 11.8 percent, and Alcoholic beverages and tobacco at 9.4 percent.

Contributing also to the inflation in the province were the following commodity groups:

a. Restaurant and accommodation services, 4.5 percent;
b. Personal care, and miscellaneous goods and services,4.6 percent;
c. Housing, water, electricity, gas, and other fuels, 2.9 percent;
d. Clothing and footwear,4.3 percent;
e. Recreation, sport and culture, 5.1 percent;
f. Health, 4.7 percent
g. Furnishing, household equipment and routine household, 4.1 percent
h. Education services,0.8 percent
 

Financial services and lnformation and communication still had zero percent inflation rate during the 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 province was 83 centavos in December 2022. This can be translated that one peso in 2018 was worth 83 centavos in December 2022.

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- Technical Notes - 

Consumer Price lndex (CPl) is a 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.

lnflation Rate (lR) is the rate of change in the average price tevel between two periods (year-on year/month-on-month as measured by the cpl).

Purchasing Power of the Peso (PPP) measures how much the peso in the reference year is worth in another year.

Base Year (BY) is the reference point of the index number series, at which the index number is set to 100. lt is the reference point of the index number series.

The CPI is now rebased from base year 2a12 to base year 201g. The rebasing of the CPI is done periodically by the PSA:

1) to ensure that the CPI market basket continues to capture goods and services commonly purchased by households over time;
2) to update expenditure patterns of households; and
3) to synchronize its base year with 2018 base year of the Gross Domestic Product and other indices produced by psA such as Producer Price lndex (PPl) forAgriculture; PPlfor Manufacturing; and Value of Production lndex (VaPl), Volume of Production lndex (VoPl), and Value of Net Sales lndex (VaNSl) for Manufacturing.

The rebasing of the CPI is also in accordance with the pSA Board Resolution No.1 Series 2017-146 which approves the synchronized rebasing of the price indices to base year 2006 and every six (6) years thereafter.

Market Basket (MB) is a sample of goods and services used to represent all goods and services produced or bought.

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