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 Province of Benguet in January 2024 was 124.2, decreased by 0.4 index points from the previous month.

Table 1. Consumer Price Index for All Income Households in Benguet, 
Region and Country:
December 2022 and 2023, January 2023 and 2024
(2018=100) 
 

Table 2. Consumer Price Index for All Income Household in Benguet
by Commodity Groups: January 2023- January 2024
(2018=100)
 

CPI by Commodity Groups

•    Among the commodity groups, transport still had the highest CPI at 155.5 index points, no recorded change from previous month.

•    Financial services ranked second among the commodity groups in the province at a constant 146.0 index points.

•    Alcoholic Beverages and Tobacco still registered the third highest CPI at 135.3 index points, decreased by 0.2 index points.

•    Meanwhile, Information and Communication remained the lowest among the commodity groups at the provincial level with 103.2 index point.

Inflation Rate

Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When 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. 

Figure 1. Inflation Rates in Benguet, All Items
(2018=100)

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index, Philippine Statistics Authority

Table 3. Year-on-Year Inflation Rates in Benguet
By Commodity Groups
In percent
(2018=100)

Following the trend of the inflation at the national and regional level, inflation in Benguet further decreased to 2.8 percent in January 2024, from 3.5 percent in December 2023. In January 2023, inflation was higher at 6.9 percent. The main driver in the downtrend of inflation in January 2024 was food and non-alcoholic beverages at 0.2 percent, from 2.4 percent in December.  This was followed by clothing and footwear at 0.2 percent from 1.5 percent, and personal care, and miscellaneous goods and services at 2.8 percent, from the 3.4 percent in the previous month.  Moreover, the following also decreased during the month:

a.    Alcoholic beverages and tobacco, 4.4 percent from 4.6 percent;
b.    Furnishings, household equipment and routine household maintenance, 3.7 percent from 4.2 percent; and
c.    Recreation, sport and culture, 2.9 percent from 3.3 percent.

On the contrary, increases were observed in the index of the following:
a.    Housing, water, electricity, gas and other fuels, 1.7 percent from 1.2 percent; and
b.    Health, 8.2 percent from 7.7 percent.
Meanwhile, no change recorded for the rest of the commodity groups.

On the other hand, food inflation at the provincial level further decreased to 0.0 percent in January 2024, from 2.4 percent. In January 2023, food inflation stood at 10.9 percent.

The lower food inflation was mainly brought about by vegetables, tubers, plantains, cooking bananas and pulses at -18.4 percent, from -6.8 percent in December 2023. It was followed by fish and other seafood at -0.2 percent from 4.8 percent, and milk, other dairy products and eggs at 9.3 percent from 11.5 percent from the previous month. Ready-made food and other food products n.e.c. also decreased to 6.4 percent from 6.9 percent.
a.    Cereals and cereal products (ND), 7.8 percent from 7.7 percent;
b.    Meat and other parts of slaughtered land animals, -0.6 percent from 1.7 percent;
c.    Fruits and nuts, 8.0 percent from 6.6 percent; and
d.    Sugar, confectionery and desserts, -4.8 percent from -6.0 percent.

Oil and fats had retained its inflation rates 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 province increased to 81 centavos in January 2024, from the 80 centavos in December 2023. This can be translated that one peso in 2018 was worth 81 centavos in January 2024.

(SGD)
IMELDA L. BUYUCCAN
Chief Statistical Specialist

/SMBP 

Technical Notes

Consumer Price Index (CPI) 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.
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).
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. It is the reference point of the index number series.
The CPI is now rebased from base year 2012 to base year 2018. 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 Index (PPI) for Agriculture; PPI for Manufacturing; and Value of Production Index (VaPI), Volume of Production Index (VoPI), and Value of Net Sales Index (VaNSI) 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.