July 2018 Price Situation in the Cordillera (Base Year: 2012)

Release Date :
Reference Number :
2018-CPI-13

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 July 2018 was 116.1. This was higher by 4.6 index points from the 111.5 CPI of July 2017 using 2012 as the new base year.
  • Rebasing CPI is necessary to ensure that this barometer of economic phenomena is truly reflective of current situation. Consumer taste, fashion and technology change over time causing the fixed market basket of goods and services to become outmoded. To capture such changes for a more meaningful price comparison, revision or updating of the fixed market basket, sample outlets, weights, and base year had to be done periodically. The CPI is an indicator that derives its usefulness in its representation of how much a typical market basket behaves over a specific period.
 

 

Table 1. Consumer Price Index by Province, CAR:
July 2017 and 2018
(2012=100)
Province July Index Point Change
2017 2018
CAR 111.5 116.1 4.6
        Abra 109.3 112.3 3.0
        Apayao 112.2 118.9 6.7
        Benguet 113.0 117.7 4.7
        Ifugao 107.7 112.4 4.7
        Kalinga 113.2 120.0 6.8
        Mt. Province 108.4 111.6 3.2
                  Source: Philippine Statistics Authority
  • Among the CAR provinces, Kalinga posted the highest CPI for July 2018 at 120.0, followed by Apayao at 118.9, and Benguet at 117.7. Mountain Province posted the lowest CPI at 111.6.
  • In terms of index point change, Kalinga incurred the highest increase at 6.8 index points, followed by Apayao with 6.7 points increase.

CPI by Commodity Groups

  • Among the commodity groups, Alcoholic Beverages and Tobacco had the highest CPI in the region at 200.4. The province of Apayao incurred the highest CPI on this commodity at 310.0, followed by Abra and Kalinga at 241.0, and 220.3, respectively.
  • Education registered the second highest CPI among the commodity groups in the region for July 2018 at 121.8 index points. Among the provinces, Ifugao had the highest index on education at 179.1, followed by Benguet and Mountain Province at 121.6 and 120.5, respectively. Apayao had the lowest at 60.9.
  • Clothing and Footwear ranked third at 118.8 index points. Kalinga recorded the highest index on clothing and footwear at 120.8, followed by Ifugao and Benguet at 120.0, and 119.8 index points, respectively.
  • Communication continued to have the lowest CPI among the commodity groups in the region with 101.3 index. The province of Apayao incurred the highest index on communication with 103.7 index points, while Mountain Province had the lowest at 100.0 index points.
  • Among the CAR provinces, Kalinga incurred the highest CPI for all items with 120.0, while Mountain Province have the lowest index at 111.6.
Table 2. Consumer Price Index by Commodity Group and by Province, CAR:
July 2018 (2012=100)
Commodity Group Region/Province
CAR Abra Apayao Benguet Ifugao Kalinga Mt. Province
All Items 116.1 112.3 118.9 117.7 112.4 120.0 111.6

        Food and Non - Alcoholic
         Beverages

 117.2 113.7 115.3 118.2 111.7 121.8 116.3

        Alcoholic Beverages and
        Tobaco

 200.4 241.0 310.0 186.5 179.9 220.3 164.7
        Clothing and Footwear 118.8 115.4 112.1 119.8 120.0 120.8

119.5

         Housing, Water, Electricity,
         Gas and Other Fuels

 114.4 106.6 119.2 118.6 119.4 108.6 110.0
          Furnishing, Household
          Equipment and Routine
          Maintainance of the House		 112.2 110.7

115.7

 111.6 111.8 121.3 108.9
         Health  115.5 105.2 108.1 122.4 106.0 118.7 102.7
         Transport 105.2 103.8 108.2 105.8 99.6 106.0 107.3
         Communication 101.3 103.6 103.7 100.4 101.4 103.5 100.0
         Recreation and Culture 104.1 107.6 115.6 101.0 106.7 112.4 104.1
         Education 121.8 100.8 60.9

121.6

 100.0 179.1 120.5
         Restaurants and
          Miscellaneous Goods
          and Services		 113.8 109.7 117.5 114.4 110.2 119.6 110.3
                  Source: Philippine Statistics Authority
  • By index point change, Alcoholic Beverages and Tobacco recorded the highest increased by 32.3 points. Increases were also incurred in Transport (6.4 points), Health (6.3 points), and Food and Non-Alcoholic Beverages (5.2 points). The rest of the commodity groups reported minimal annual increases.
Figure 1. Year-on-Year Consumer Price Index by Commodity Group,
CAR: July 2017 and 2018 (2012=100)

Inflation Rate

  • Average increase in prices of goods and services in the region accelerated to 4.1 percent in July 2018.
  • Apayao and Kalinga posted the highest inflation rate both at 6.0 percent, followed by Ifugao at 4.4 percent.
  • Inflation of all the provinces surpassed the July 2017 rates that had lower inflation rates in July 2018 relative to the same month last year.
Figure 2. Year-on-Year Inflation Rates by Province, CAR:
July 2017 and 2018 (2012=100)
 
 
By Commodity Group, Year- on-Year
  • Year-on-year inflation rate of the heavily-weighted Food and Non-Alcoholic Beverages index in the region accelerated to 4.6 percent from 4.3 percent in the previous month
  • Alcoholic Beverages & Tobacco had the highest inflation among other commodities in the region with 19.2 percent, followed by Transport with 6.5 percent.
  • Meanwhile, inflation rates for Transport, and Communication were the same last month.
Table 3. Year-on-Year Inflation Rates by Commodity Groups,
CAR: June and July 2018 (2012=100)
Commodity Group Inflation Rates
June 2018 July 2018
All Items 3.9 4.1
        Food and Non-Alcoholic Beverages 4.3 4.6
        Alcoholic Beverages and Tobacco 16.3 19.2
        Clothing and Footwear 2.6 3.3
        Housing, Water, Electricity, Gas and Other Fuels 2.9 3.6
        Furnishing, Household Equipment & Routine Maintenance of the House 2.3 1.9
        Health 2.6 5.8
        Transport 6.5 6.5
         Communication 0.1 0.1
         Recreation and Culture 0.3 0.8
         Education 3.3 -1.3
        Restaurants and Miscellaneous Goods and Services 2.5 2.4
                  Source: Philippine Statistics Authority
 
By Food Items, Year-on-Year
  • Vegetables (17.1), Corn (10.5), and Meat (5.2) persisted to be the top three highest price increases.
  • At the same time, Fruits incurred a negative inflation rate of 0.1 percent in July 2018.
Table 4. Year-on-Year Inflation Rates of Selected Food Items, CAR:
June and July 2017 and 2018 (2012=100)
Food Items 2018 2017 Inflation Rates
June July June July Previous Current
Bread and Cereals  117.6 116.5 112.6 113.0 4.4 3.1
        Rice 118.3 116.7 112.9 113.3 4.8 3.0
        Corn 149.6 145.5 131.6 131.7 13.7 10.5
        Other Cereals* 113.6 114.0 110.8 110.9 2.5 2.8
Meat 117.3 117.6 111.7 111.8 5.0 5.2
Fish 113.6 115.9 111.5 111.6 1.9 3.9
Milk, Cheese and Eggs 114.3 115.1 110.6 110.9 3.3 3.8
Oils and Fats 112.2 113.0 110.2 110.8 1.8 2.0
Fruits 132.5 130.0 131.0 130.1 1.1 -0.1
Vegetables 119.1 121.7 108.0 103.9 10.3 17.1
Sugar, Jam, Honey, Chocolate & Confectionery 110.7 111.0 108.3 107.9 2.2 2.9
Food Products, N. E. C.  108.5 107.8 106.0 105.6 2.4 2.1
                  *includes flour, cereal preparation, bread, pasta, and other bakery products
                  Source: Philippine Statistics Authority
 
Purchasing Power of the Peso (PPP)
  • The value of the peso in the region was 86 centavos in July 2018. This dropped by four centavos from 90 centavos in July 2017. This means that one peso in 2012 is worth 86 centavos in 2018.
  • In other words, a basket of goods that can be bought 100 pesos in July 2012 is worth 116 pesos in July 2018.
  • The PPP in all the provinces generally weakened in July 2018 as compared to July 2017.
  • Mountain Province had the highest peso value at 90 centavos. Meanwhile, Kalinga had the lowest peso value at 83 centavos.
Figure 3. Purchasing Power of the Peso by Province, CAR:
July 2017 and 2018
(2012=100)

 

 

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 to 2012 base year from the current 2006 base year. The year 2012 was chosen as the next base year because it was the latest year when the Family Income and Expenditure Survey (FIES) results were made available. It is also the synchronized rebasing of the price indices to base year 2006 and every six 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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