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

Reference Number: 

2022-SR22-015

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.

Inflation rate in Mandaue City inches up to 3.7% in July 2022

Mandaue City’s inflation rate further inched up from 3.6 percent in June 2022 to 3.7 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, Mandaue City's average inflation rate remained at 3.7 percent. Inflation in July 2022 was higher compared to the inflation in July 2021 at 1.7 percent. (See Table A.)

January 2022 records highest inflation at 4.9 percent

An up and down movement of the inflation rate was observed in Mandaue City from July 2021 to July 2022. The highest inflation was recorded in the month of January 2022 at 4.9 percent among the months of the same period. (See Figure 1 and Table B.)

Mandaue City’s inflation driven by Alcoholic Beverages and Tobacco

The step up in the inflation was mainly due to upsurge in the inflation in Alcoholic Beverages and Tobacco at 7.5 percent in July 2022, from 5.0 percent in June 2022. Also, contributing to the upward trend was the higher increments registered in the indices of the following commodity groups:

  • Food and Non-Alcoholic Beverages, 5.6 percent
  • Furnishing, Household Equipment and Routine Household Maintenance, 0.5 percent
  • Health, 0.3 percent
  • Recreation, Sport and Culture, 0.1 percent
  • Restaurants and Accommodation Services, 1.5 percent
  • Personal Care, and Miscellaneous Goods and Services, 0.8 percent

On the other hand, decrease were recorded in Housing, Water, Electricity, Gas, and Other Fuels at 0.8 percent in July 2022, from 1.4 percent in June 2022; and Transport at 16.1 percent in July 2022, from 16.7 percent in June 2022.

Meanwhile, Clothing and Footwear index retained its previous month’s inflation rate

Indices for commodity groups such as Information and Communication; Education Services; and Financial Services all showed constant inflation at 0 percent. (See Table C.)

 

July 2022 CPI in Mandaue City records at 108.7

The Consumer Price Index (CPI) in Mandaue City was recorded at 108.7 in July 2022. Moreover, a higher index by 3.9 points is generated in July 2022 compared to generated from the same month in 2021. This month had the highest CPI in Mandaue City for the period July 2021 to July 2022. (See Figure 2.)

PPP in the Mandaue City maintains at 0.92

Mandaue City’s Purchasing Power of Peso (PPP) was maintained at 0.92 for July 2022, indicating that a peso in 2018 is only worth 0.92 in the month of reference. Furthermore, it implied that the prices of the same market of goods and services valued at Php 100.00 in 2018 are worth Php 92.00 in July 2022. (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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