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.
Cebu province’s inflation rate continued move to a faster pace at 10.2%
The inflation rate in Cebu Province excluding its highly urbanized cities namely Cebu City, Lapu-Lapu City and Mandaue City, in all items, further accelerated by 10.2 percent in July 2022, an increase of 1.6 percentage points compared to the inflation in June 2022 at 8.6 percent. The inflation rate in the province for the month of July 2022 was higher by 3.8 percentage points compared to the country’s inflation at 6.4 percent and higher by 3.3 percentage points compared to the inflation in Central Visayas at 6.9 percent respectively. This brings the provincial average inflation from January to July 2022 at 8.3 percent. In July 2021 the inflation was lower at 0.2 percent. (See Table A.)
Highest inflation was recorded in the month of July 2022
An up and down movement of the inflation rate was noted in the province for the period of January to July 2022. The inflation rate in the month of July had the highest inflation for the same period at10.2 percent. (See Figure 1 and Table B.)
The increase of inflation in Cebu was driven by Transport, and Alcoholic Beverages and Tobacco
The upsurge in the inflation in Cebu province for the month of July 2022 was mainly driven by the increase in the inflation of the commodity group, Transport at 39.6 percent, an increase of 9.1 percentage points compared to the inflation in June 2022 at 30.5 percent. This was followed by Alcoholic Beverages and Tobacco with an increase of 8.0 percentage points in the inflation from 1.1 percent in June 2022 to 9.1 percent in July 2022.
Indices in the following commodity groups also displayed a rise in inflation:
- Food and Non-Alcoholic Beverages at 13.7 percent
- Clothing and Footwear at 0.2 percent
- Housing, Water, Electricity, Gas, and Other Fuels at 2.2 percent
- Furnishings, Household Equipment, and Routine Household Maintenance at 2.8 percent
- Health at 0.5 percent
- Recreation, Sport and Culture at 0.5 percent
- Restaurants and Accommodation Services at 5.1 percent and
- Personal Care, and Miscellaneous Goods and Services
Meanwhile, inflation in the commodity group: Information and Communication, Education Services, Financial Services remained constant at 0 percent. (See Table C.)
July 2022 CPI further increased at 114.5
The Consumer Price Index (CPI) in Cebu province further increased to 114.5 in July 2022. This means that on average, prices of goods and services in the province increased by 14.5 units from the base year 2018 at 100. The index was higher than the CPI from the previous month at 113.5. The month of July had the highest CPI in Cebu for the period July 2021 to July 2022. (See Figure 2.)
PPP in Cebu province decreased in July 2022
The purchasing power of peso (PPP) in Cebu province decreased to 0.87 for the month of July 2022 compared to the PPP in June 2022 at 0.88. The PPP in Cebu province for the period June 2021 to June 2022 showed a decreasing trend from 0.96 in the months of June to October 2021 to 0.87 in the month of July 2022. (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)