Release Date :
Reference Number :
23CAR44-559
Mountain Province CPI Went down in June 2023
The Consumer Price Index for all items in Mountain Province for the month of June 2023 was estimated at 123.9 index points using 2018 as its base year. This means that using year 2018=100, there was an increase of 24.8 index points on the average retail price of a fixed basket of goods and services commonly purchased by households in the province.
In addition, this was 0.2 index points lower compared to its preceding month with a CPI of 124.1 but was 4.0 index points higher compared to the same month of 2022 with 119.9 index points.
Table 1: Monthly CPI for All Income Households by Commodity Group,
Mountain Province: June 2023
(2018 = 100)
| Commodity Group | June 2022 | May 2023 | June 2023 |
|---|---|---|---|
| All Items | 119.9 | 124.1 | 123.9 |
| Food and Non-alcoholic Beverages | 114.2 | 120.9 | 120.7 |
| Alcoholic Beverages and Tobaco | 161.8 | 172. | 172.5 |
| Clothing and Footwear | 116.8 | 118.3 | 117.1 |
| Housing, Water, Electricity, Gas and other Fuels | 132.5 | 133.8 | 133.7 |
| Furnishings, Houshold Equipment and Routine Maintenance | 124.1 | 129.6 | 129.2 |
| Health | 109.1 | 107.5 | 108.2 |
| Transport | 129.6 | 124.1 | 123.6 |
| Information and Communication | 99.5 | 99.9 | 99.9 |
| Recreation, Sport and Culture | 105.5 | 109.4 | 109.8 |
| Education Services | 105.3 | 104.8 | 104.8 |
| Restaurant and Accommodation Services | 145.1 | 159.3 | 159.3 |
| Financial Services | 100.0 | 100.0 | 100.0 |
| Personal Care, and Miscellaneous Goods and Services | 115.8 | 115.2 | 115.5 |
Commodity Group “Alcoholic Beverages and Tobacco” Tops the Index
Among the different major commodity groups in the province, Alcoholic Beverages and Tobacco had the highest value with a consumer price index of 172.5 for the month of June 2023. Among its subgroups, tobacco continued to have the highest price index with 231.4 while other vegetable-based tobacco products had a price index of 159.2.
Figure 1: Consumer Price Index for All Income Households
Mountain Province: June 2023
(2018 = 100)
Restaurants and Accommodation Services ranked second with an index point of 159.3. Food and Beverage Serving Services had the highest index points with 164.8 among its subgroups followed by Accommodation Services with 137.8 index points.
Housing, water, electricity, gas, and other fuels ranked third with an index point of 133.7. Among its subgroups, electricity, gas, and other fuels had the highest index point of 144.2 followed by actual rentals for housing with an index point of 126.9.
Information and Communication had the lowest CPI in the province with an index point of 99.9 while Financial Services showed no changes in its index points.
CPI for All Items Shows a down Trend
Figure 2 shows the CPI for All Items in the province for the month of May 2023 and June 2023. The indices for All Items showed a decrease in June 2023 from May 2023 with index points 123.9 and 124.1 respectively.
Among the different commodity groups, clothing and footwear decreased by 1.2 points followed by transport with index point of 0.5 while health and recreation, sports and culture increased by 0.7 and 0.4 index points respectively.
Figure 2: Consumer Price Index by Commodity Group
Mountain Province: May 2023 and June 2023
(2018 = 100)
While indices of 6 commodity groups decreased from May 2023 to June 2023, four groups also showed no changes. These are information and communication; education services; restaurants and accommodation services; and financial services. It means that their CPI in May 2023 was the same in June this year.
Inflation Rate by Month
Inflation rate in the province decreased to 3.3 percent in June 2023 from 4.5 percent in May 2023. In June last year, inflation rate was higher at 8.5 percent.
The deceleration in the inflation rate in June 2023 was primarily due to the lower annual growths in the food and non-alcoholic beverages at 48.2 percent; housing, water, electricity, gas and other fuels at 16.8 percent, and transport at 13.6 percent.
The following commodities contributed to the down trend of the inflation rate for the said month:
a. Clothing and footwear, 8.5 percent;
b. Restaurants and accommodation services, 5.8 percent; and
c. Alcoholic beverages and tobacco at 3.2 percent.
Figure 3: Inflation Rate by Month,
Mountain Province: June 2022 – June 2023
(2018=100)
Meanwhile, recreation, sport and culture showed an increase in their annual growth with 4.1 percent. The rest of the commodity groups changed but at a minimal rate.
Purchasing Power of Peso (PPP) Slides by 2 Centavos
The Purchasing Power of the Peso (PPP) in the province for June 2023 remain at 0.81 from the previous month and decreased by 2 centavos compared to the same month of the previous year. Thus, a hundred peso in 2018 is worth 81 pesos this June 2023. (Figure 4).
Figure 3: Inflation Rate by Month,
Mountain Province: June 2022 – June 2023
(2018=100)
TECHNICAL NOTES
Consumer Price Index (CPI) a single number used to measure changes in the average retail prices of a market basket or collection of goods and services commonly purchased by an average, prices of goods and services have increased or decreased from a particular reference period known as base year.
The CPI measures the changes in the price level of goods and services that most people buy for their day-to-day consumption relative to a base year (current at year 208)
It is widely used in the calculation of the inflation rate and purchasing power of peso. Changes in the CPI over a specified period of time (usually a month or a year), is the rate of inflation, Inflation is equivalent to a decline in the purchasing of peso (PPP).
The Purchasing Power of Peso (PPP) gives an indication of the real value of the peso (how much it is worth) in a given period relative to its value in a base period. Or it measures how much the peso in the reference year is worth in another year.
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).
Base Year (BY) is the reference point of the index number series, at which the index number is set to zero.
Market Basket (MB) is a sample of goods and services used to represent all goods and services produced or bought.
The monthly Consumers Price Index is computed based on the average retail prices of goods and services collected during the first week and mid-month of the reference month.
Retail Price - the actual price at which retailers sell a commodity on spot or earliest delivery, usually in small quantities for consumption and not for resale. It is confined to transactions on cash basis in the free market and excludes black-market prices and prices of commodities that are on sale as in summer sales, anniversary sales, Christmas sales, etc.
JERRY G. SANTOS
Chief Statistical Specialist
| Attachment | Size |
|---|---|
 Special-Release-on-CPI_June-2023-Issue%20%281%29.pdf |
721.55 KB |