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 April 2023 was 115.6. Comparing to March 2023, index for the city decreased by 0.3 points.

CPI by Commodity Groups

• Among the commodity groups, Alcoholic Beverages and Tobacco had the highest CPI at 135.5 index points, increased by 0.3 points from the previous month.
• Financial Services had the second highest CPI at 135.4 index points.
• Food and Non-Alcoholic Beverages remained the third among the commodity groups in the city at 126.8 index points.
• Meanwhile, Information and Communication still had the lowest CPI among the commodity groups at the provincial level with 102.2 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 inflation at the national and regional level, inflation in Baguio City further slowed down to 3.4 percent in April 2023, from 4.3 percent in March 2023. In April 2022, inflation was higher at 5.2 percent.

The main driver in the downtrend of inflation in April 2023 was housing, water, electricity, gas and other fuels, at -1.2 percent, from 0.5 percent in March 2023.  This was followed by transport at 6.4 percent, from 8.8 percent, and food and non-alcoholic beverages at 9.4 percent, from the 9.9 percent in the previous month.

Relative to their annual rates in the previous month, decreases were also observed in the indices of the following commodity groups:

1. Alcoholic beverages and tobacco, 9.2 percent; and
2. Personal care, and miscellaneous goods and services, 5.5 percent.

On the contrary, increases were observed in the index of the following:

1. Clothing and footwear, 0.6 percent;
2. Furnishing, household equipment and routine household maintenance, 1.8 percent;
3. Health, 3.4 percent;
4. Recreation, sport and culture, 4.0 percent; and
5. Restaurants and accommodation services, 3.8 percent.

Meanwhile, the rest of the commodity groups remained at their previous month’s annual rates.

Food inflation at the city level further decreased to 9.6 percent in April 2023, from 10.1 percent in March 2023. In April 2022, food inflation stood at 9.5 percent.

The lower food inflation was mainly brought about by vegetables, tubers, plantains, cooking bananas and pulses at 17.4 percent in April 2023, from 21.8 percent in March 2023. It was followed meat and other parts of slaughtered land animals at 2.8 percent, from 4.7 percent, and rice at 6.3 percent, from 6.7 percent in the previous month.

Moreover, lower annual mark-ups were observed in the indices of the following food groups during the month:

1. Sugar, confectionery and desserts, 25.8 percent;
2. Milk and other dairy products and eggs, 20.8 percent;
3. Oils and fats, 8.8 percent; and
4. Corn, 53.1 percent.

Meanwhile, increases were recorded for the following:

1. Flour, bread and other bakery products, pasta products, and other cereals, 12.6 percent;
2. Fish and other seafood, 4.6 percent;
3. Fruits and nuts, 12.5 percent; and
4. Ready-made food and other food products n.e.c, 8.0 percent.

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 increased to 87 centavos in April 2023. This can be translated that one peso in 2018 was worth 87 centavos in April 2023.

IMELDA L. BUYUCCAN

Chief Statistical Specialist

/SMBP