Starting February 2022, the Philippine Statistics Authority (PSA) released the rebased Consumer Price Index (CPI) for all income households to base year 2018, from base year 2012 as announced in the press release number 2022-01 dated 04 January 2022. The CPI series for all income households for January 2022 onwards will be 2018-based.
Inflation rate in Cebu City climbs further at 2.4 percent in July 2022
Cebu City’s inflation rate further increased from 2.3 percent in June 2022 to 2.4 percent in July 2022. In the same period, the city's inflation rate is lower than the Central Visayas inflation rate of 6.9 percent. From January to July 2022, Cebu City's average inflation rate remained at 2.0 percent. Inflation in July 2022 was also higher compared to the inflation in July 2021 at 1.8 percent. (See Table A.)
January 2022 records highest inflation at 2.8 percent
An up and down movement of the inflation rate was observed in Cebu City from July 2021 to July 2022. The highest inflation was recorded in the month of January 2022 at 2.8 percent among the months of the same period. (See Figure 1 and Table B.)
Cebu City’s inflation driven by Food and Non-Alcoholic Beverages
The acceleration in the inflation was mainly driven by the increase in the inflation of Food and Non-Alcoholic Beverages index from 0.8 percent in June 2022 to 1.7 percent inflation in July 2022. Also, contributing to the upward trend was brought about the increase in the indices of the following commodity groups in July 2022:
- Alcoholic Beverages and Tobacco, 1.2 percent
- Furnishings, Household Equipment and Routine Maintenance of the House, 5.5 percent
- Information and Communication, 1.4 percent
- Recreation, Sport and Culture, 1.3 percent
- Personal Care, and Miscellaneous Goods and Services, 1.2 percent
On the contrary, decrease in the inflation were recorded in Housing, Water, Electricity, Gas and Other Fuels at 0.4 percent in July 2022, from 0.9 percent in June; Health at 2.0 percent in July 2022, from 1.9 percent in June; and Transport at 17.2 percent in July 2022, from 19.6 percent in June 2022.
Meanwhile, Clothing and Footwear index retained its previous month’s inflation rate at 0.1 percent.
Indices among commodity groups: Education Services; Restaurants and Accommodation Services; and Financial Services posted a constant inflation at 0.0 percent. (See Table C.)
Cebu City’s CPI hikes at 107.3 in July 2022
The Consumer Price Index (CPI) in Cebu City for the month of July 2022 further increased to 107.3. Moreover, a higher index by 2.5 points was generated in July 2022 compared to the same month in 2021. This month had the highest posted CPI in the city at 107.3 for the period July 2021 to July 2022. (See Figure 2.)
PPP in Cebu City drops at 0.93
Cebu City’s Purchasing Power of Peso (PPP) or real value of the peso decreased to 0.93 for July 2022, indicating that the value of PHP 1.00 in 2018 is only worth 0.93. (See Figure 3.)
The Philippine Statistics Authority generates and announces the monthly Consumer Price Index (CPI) based on a nationwide survey of prices for a given basket of goods and services. Two important indicators, the inflation rate and purchasing power of the peso (PPP), are derived from the CPI which are important in monitoring price stability and the value of the country’s currency.
The Consumer Price Index (CPI) is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.
Base Period/Base Year is the period, usually a year, at which the index number is set to 100. It is the reference point of the index number series.
Inflation Rate (IR) is equivalent to a decline in the purchasing power of the peso. It is the change in the CPI over a specific period of time (usually a month or a year). That is,
CPI1 - is the CPI in the previous period
CPI2 - is the CPI in the current period
The Purchasing Power of the Peso (PPP) is a measure of the real value of the peso in a given period relative to a chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100. That is,
(SGD) JUANILLA R. PREMNE
(Supervising Statistical Specialist)