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 Province of Benguet in April 2023 was 119.0, decreased by 0.2 index points from the 119.2 index last March 2023.

CPI by Commodity Groups

• Among the commodity groups, Financial Services still had the highest CPI at 146.0 index points. It recorded a constant 146.0 CPI starting January 2022 up to this month.
• Transport Services ranked second among the commodity groups in the province at 139.3 index points in April 2023. It decreased by 0.8 index point comparing from the previous month.
• Alcoholic Beverages and Tobacco registered the third highest CPI at 133.8 index points, increased by 2.3 index point from the previous month.
• Meanwhile, Information and Communication still had the lowest CPI among the commodity groups at the provincial level with 103.0 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 Benguet further slowed down to 3.6 percent in April 2023, from 4.7 percent in March 2023. In April 2022, inflation was higher at 9.4 percent.

The main driver in the downtrend of inflation in April 2023 was transport at 3.3 percent, from 8.0 percent in March 2023.  This was followed by housing, water, electricity, gas and other fuels, at -0.7 percent, from 0.6 percent, and food and non-alcoholic beverages at 6.7 percent, from the 7.5 percent in the previous month.

Relative to their annual rates in the previous month, decrease was also observed in the indices of furnishings, household equipment and routine household maintenance at 4.4 percent.

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

1. Alcoholic beverages and tobacco, 10.4 percent;
2. Health, 4.4 percent;
3. Recreation, sport and culture, 5.9 percent;
4. Restaurants and accommodation services, 5.6 percent; and
5. Personal care, and miscellaneous goods and services, 5.4 percent.

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

Food inflation at the provincial level further decreased to 6.8 percent in April 2023, from 7.7 percent in March 2023. In April 2022, food inflation stood at 10.6 percent.

The lower food inflation was mainly brought about by meat and other parts of slaughtered land animals at -4.2 percent, from 0.3 percent in March 2023. It was followed by vegetables, tubers, plantains, cooking bananas and pulses at 12.2 percent, from 13.2 percent, and sugar, confectionery and desserts at 36.3 percent, from 39.0 percent in the previous month. Moreover, lower annual mark-ups were observed in the indices of the following food groups during the month:

1. Fruits and nuts, 14.6 percent;
2. Rice, 3.8 percent; and
3. Oils and fats, 16.8 percent.

Meanwhile, higher annual growth rates were observed in the indices of the following food groups in April 2023:

1. Flour, bread and other bakery products, pasta products, and other cereals, 8.5 percent;
2. Fish and other seafood, 5.6 percent; and
3. Milk, other dairy products and eggs, 15.4 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 province remained at 84 centavos in April 2023. This can be translated that one peso in 2018 was worth 84 centavos in April 2023.

IMELDA L. BUYUCCAN

Chief Statistical Specialist

/SMBP