July 2022 Consumer Price Index (CPI), Inflation Rate (IR), Purchasing Power of Peso (PPP) in Lapu-Lapu City

Reference Number: 

2022-SR22-014

Release Date: 

8 August 2022

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.

Year on Year Inflation rate in Lapu-Lapu City further accelerated to 2.5 percent

Inflation rate in Lapu-Lapu City in all items, further increased to 2.5 percent in July 2022, this is higher by 0.8 percentage points compared to inflation in June 2022 at 1.7 percent. The inflation in the month of July 2022 was also higher compared to the inflation in July 2021 at 1.6 percent. The average inflation from January to July 2022 further increased at 1.7 percent. (See Table A.)

Inflation in January 2022 was higher compared to July 2022

An up and down movement of the inflation was noted for the period of July 2021 to July 2022. The highest inflation was recorded in the month of January 2022 at 2.8 percent which was higher compared to the inflation in July 2022 at 2.5 percent (See Figure 1. and Table B.)

 

Lapu-Lapu City’s inflation is driven by Alcoholic Beverages and Tobacco, and Transport 

The upsurge in the inflation in Lapu-Lapu City was mainly driven by the increase in the inflation of the commodity groups: Alcoholic Beverages and Tobacco and Transport with 5.1 percent and 17.7 percent, respectively, in July 2022. 

Indices in the following commodity groups also displayed an increased in the inflation:

  • Food and Non-Alcoholic Beverages at -0.3 percent
  • Clothing and Footwear at 0.4 percent
  • Housing, Water, Electricity, Gas, and Other Fuels at 4.3 percent
  • Furnishings, Household Equipment, and Routine Household Maintenance at 0.8 percent
  • Information and Communication at 0.4 percent
  • Personal Care, and Miscellaneous Goods and Services at 0.8 percent

Indices in the following commodity groups: Health; Recreation, Sport, and Culture; Clothing and Footwear; Education Services; Restaurants and Accommodation Services, Financial Services, remained constant compared to the previous month inflation. (See Table C.)

CPI in Lapu-Lapu City further increased at 107.3 in July 2022

The Consumer Price Index (CPI) in Lapu-Lapu City further increased to 107.3 for the month of July 2022. This was higher compared to the CPI in June 2022 at 106.3. This implies that the cost of a basket of goods and services commonly purchased by typical households in the city, with an average value at 100 in the year 2018, is worth 107.3 in July 2022. The month of July 2022 had the highest CPI in Lapu-Lapu City for the period July 2021 to July 2022. (See Figure 2.)

PPP in the city decreased to 0.93 in July 2022

Purchasing power of peso (PPP) in Lapu-Lapu City decreased to 0.93 for the month of July 2022 compared to June 2022 at 0.94. The PPP in the city for the period July 2021 to July 2022 showed an up and down trend from 0.96 in June 2021 to 0.93 in July 2022. The month of July 2022 had the lowest PPP in the city of the same period. (See Figure 3.)

 

 

Technical Notes:

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, 

 

 

Where:

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,

 

 

 

 

Approved by:

 

 

(SGD) JUANILLA R. PREMNE
(Supervising Statistical Specialist)
Officer-in-Charge

 

 

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