The headline inflation rate in Kalinga goes down to 2.8 percent in August 2024, from 4.4 percent in July 2024. In August 2023, inflation rate was observed at 3.5 percent.

PRICE SITUATION: Month-on-Month.

In the month-on-month comparison, the Consumer Price Index (CPI) in All Items is posted at 0.0 percent the same from 127.0 to 127.0. The no changes in the monthly CPI of the month was the result of the stable of prices from the group of Financial Services with 146.0; Restaurant and Accommodation Services with 147.7, Education services with 127.7, and Clothing and Footwear with 129.4.

Moreover, there is a slight increase in the group of Food and Non-Alcoholic beverages with 0.6 percent change from 129.2 to 130.0, Personal Care and Miscellaneous Goods and Services with from 0.2 changes with 123.7 to 123.9, and 0.1 changes from the group of Information and Communication from 103.4 to 103.5, Health from 140.1 to 140.2, Furnishings, Household Equipment and Routine Household maintenance from 135.7 to 135.8 and Recreation, Sport and Culture from 120.0 to 120.1. 

Moreover, there was a decrease in percent change in the group of Transport with -2.1 changes from 121.2 to 118.6 and Alcoholic Beverages and Housing, Water, Electricity, Gas and other Fuels with -0.5 percent changes from 184.3 to 183.3, and 110.0 to109.4 respectively.

Figure 2: Consumer Price Index by Commodity Group for All Income Households in Kalinga July 2024 and August 2024

(2018=100)

Purchasing Power of Peso

Figure 3: Purchasing Power of Peso in Kalinga

Technical Notes:

Price – is the amount or value paid in exchange for the commodity or a service rendered.

Retail/Consumer Price – refers to the price at which a commodity is sold in small quantities for consumption.

Weight – a value attached to a commodity or group of commodities to indicate the relative importance of that commodity or group of commodities in the market basket.

Market Basket – a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.

Consumer Price Index (CPI) – is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.

Inflation Rate - is the percentage increase or decrease in prices during a specified period, usually a month or a year and it is derived from CPI. It is interpreted in terms of declining purchasing power of money.

Unit of Measure -   refers to which a commodity is customarily traded in the market and it is the actual unit in which the associated values are measured. 

Commodity Specifications – refers to the detailed description of the commodity such as a brand packaging, size and unit of measure or other characteristics that will best describe the product/commodity and are important in the determination of prices.

  Uses of the CPI

As an indicator, the CPI is the most widely used in the calculation of the inflation rate and purchasing power of the peso. It is a major statistical series used for economic analysis and as monitoring indicator of government economic policy.

The CPI is also used as a deflector to express value series in real terms, which is, measuring the change in actual volume of transaction by removing the effects of price changes. The CPI also serves as inputs in wage adjustments through the collective bargaining agreements.

sgd.
MARIBEL M. DALAYDAY
Chief Statistical Specialist