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.
1. The Philippines
The headline inflation in the Philippines accelerated to 6.9 percent in September 2022, from 6.3 percent in August 2022. This is the highest recorded inflation since October 2018. With this month’s inflation, the Philippines’ average inflation rate from January to September 2022 stood at 5.1 percent. In September 2021, inflation rate was observed at 4.2 percent. (Table A)
2. Central Visayas
Similar to the trend at the national level, inflation in Central Visayas rose to 8.1 percent in September 2022, from 7.4 percent in August 2022. In September 2021, inflation rate in the region stood at 2.2 percent. (Table A, B and Figure 1)
Inflation rate during the month was the highest since January 2019. With this month’s inflation, the region’s average inflation from January to September 2022 stood at 6.0 percent. (Table B)
The acceleration of inflation in Central Visayas in September 2022 was primarily due to the higher annual growths in the Housing, Water, Electricity, Gas, and Other Fuels at 7.9 percent, from 5.2 percent in August 2022. This was followed by Restaurants and Accommodation Services with 5.6 percent annual growth, from 3.6 percent in August 2022. Also contributing to the uptrend in the overall inflation in September 2022 were the higher annual increases in the indices of the following commodity groups: (Table 3)
- Alcoholic Beverages and Tobacco, 8.5 percent;
- Clothing and Footwear, 1.5 percent;
- Health, 1.8 percent;
- Information and Communication, 1.0 percent;
- Recreation, Sport and Culture at 1.2 percent;
- Education Services, 0.9 percent; and
- Personal Care, and Miscellaneous Goods and Services; 2.2 percent.
Meanwhile, lower annual increases were observed in the indices of the following commodity groups: (Table 3)
- Food and Non-Alcoholic Beverages, 9.8 percent;
- Furnishing, Household Equipment and Routine Household Maintenance, 2.5 percent; and
- Transport, 17.4 percent.
Meanwhile, Financial Services retained its previous month’s inflation rate. (Table 3)
Inflation for food at the regional level was lower at 10.4 percent in September 2022, from to 10.6 percent in August 2022. In September 2021, food inflation was lower at 2.8 percent. (Table 7)
Slower annual growth rates were observed in the following food groups: (Table 5)
- Corn, 56.8 percent;
- Meat and other parts of slaughtered land animals, 10.9 percent;
- Milk, other dairy products and eggs, 1.9 percent; and
- Fruits and nuts, 9.3 percent.
On the other hand, faster annual growth rates were observed in the following food groups: (Table 5)
- Rice, 2.5 percent;
- Flour, bread and other bakery products, pasta products, and other cereals, 7.4 percent;
- Fish and other seafood, 10.7 percent;
- Oils and fats, 23.3 percent;
- Sugar, confectionery and desserts, 38.2 percent; and
- Ready-made food and other food products n.e.c., 5.3 percent.
Moreover, Vegetables, tubers, plantains, cooking bananas and pulses index declined during the month at an annual rate of -1.5 percent.
3. By Province
Following the trend at the national and regional level, inflation rates in the provinces and Highly Urbanized Cities (HUCs) of Central Visayas, except for City of Mandaue, recorded higher inflation rates in September 2022. (Figure 2)
Among the provinces, the Province of Cebu posted the highest inflation rate during the month at 11.6 percent while Negros Oriental had the lowest inflation rate at 6.8 percent. (Figure 2)
Moreover, among the HUCs in Central Visayas, the City of Lapu-Lapu posted the highest inflation rate at 4.7 percent, followed by the City of Cebu at 4.4 percent. The lowest inflation rate was noted in the City of Mandaue at 3.7 percent. (Figure 2)
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 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.
Retail Price is the price at which a commodity is sold for spot in small quantities for consumption.
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.
Market Basket is a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.
Weight is a value attached to a commodity or ground of commodities to indicate the relative importance of that commodity or group of commodities in the market basket.
Inflation Rate 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,
Headline Inflation is the rate of change in the weighted average prices of all goods and services in the CPI basket.
(SGD.) ARIEL E. FLORENDO