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 City of Baguio in September 2022 was 114.8. Comparing to last month, index for the city increased by 0.9 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 month.

·      Alcoholic Beverages and Tobacco had the second highest CPI at 134.2 index points, increased by 1.2 index points from last month.

·      Transport Services ranked third among the commodity groups in the city at 125.6 index points. It increased by 4.0 index points comparing from last month.

·      Meanwhile, Information and Communication still had the lowest CPI among the commodity groups at the provincial level with 101.8 index points.

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.

Following the trend of the national level, inflation rate in Baguio City had increased from 4.6 to 5.1 percent in October 2022.

Transport services posted the highest inflation rate among the commodity groups at 18.6 percent. It was followed by alcoholic beverages and tobacco at 10.7 percent, and food and non-alcoholic beverages at 7.2 percent.

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

a.    Housing, water, electricity, gas, and other fuels, 1.8 percent;

b.    Personal care, and miscellaneous goods and services, 4.6 percent;

c.    Furnishing, household equipment and routine household maintenance, 0.7 percent

d.    Education services, 1.3 percent

e.    Recreation, sport and culture, 2.5 percent;

f.     Health, 1.6 percent

g.    Restaurant and accommodation services, 5.7 percent

h.    Information and communication, 0.1 percent

Meanwhile, clothing and footwear, and financial 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 87 centavos in October 2022, lower than 1 centavo from the previous month. This can be translated that one peso in 2018 was worth 87 centavos in October 2022.

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.