Consumer Price Index

CPI Press Release

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

Release Date: 7 July 2022
Reference Number: 2022-SR22-010

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 1.7%

Inflation rate in Lapu-Lapu City in all items, further increased to 1.7 percent in June 2022, this is higher compared to 1.5 percent in May 2022. An increase of 0.6 percentage points compared to the inflation in June 2021 at 1.1 percent. The average inflation from January to June 2022 remained at 1.5 percent. (See Table A.) 

Lowest inflation recorded in the month of December 2021

An up and down movement of the inflation was noted for the period of June 2021 to June 2022. The lowest inflation was recorded in the month of December 2021 at 0.6 percent of the same period. (See Figure 1. and Table B.)

Lapu-Lapu City’s inflation is driven by Transport

The upsurge in the inflation was mainly driven by the increase in the inflation of Transport index from 14.2 percent in May 2022 to 16.3 percent inflation in June 2022. Meanwhile, indices of the rest of the commodity groups retained their previous month’s inflation rates:

o   Health, 0.6 percent

o   Information and Communication, 0.1 percent

o   Recreation, Sport and Culture, 0.5 percent

o   Personal Care, and Miscellaneous Goods and Services, 0.2 percent

Indices among commodity groups: Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; Education Services; Restaurants and Accommodation Services, Financial Services at 0.0 percent.

On the contrary, decrease in the inflation both recorded in Alcoholic Beverages and Tobacco at 1.8 percent in June 2022, from 1.9 percent in May; and Housing, Water, Electricity, Gas, and Other Fuels at 4.4 percent in June 2022, from 4.1 percent in May 2022. (See Table C.)  

CPI in June 2022 in Lapu-Lapu City was recorded at 106.3

The Consumer Price Index (CPI) in Lapu-Lapu City was posted at 106.3 in June 2022. 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 106.3 in June 2022. The CPI in June 2022 is higher compared to the CPI in the month of May 2022 at 106.0. The month of June 2022 had the highest CPI in Lapu-Lapu City. (See Figure 2.)

PPP in the city was recorded at 0.94 in May 2022

Purchasing power of peso (PPP) in Lapu-Lapu City remained constant at 0.94 for the month of June 2022 compared to May 2022. The PPP in the city for the period June 2021 to June 2022 showed an up and down trend from 0.96 in June 2021 to 0.94 in June 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

 

 

 

CPI Press Releases by Year

Technical Notes

*  2012 Base Year

Rationale for Rebasing the CPI from 2006 to 2012

Rebasing is necessary when the basket of the reference year no longer represents what is commonly purchased by the households. The CPI then becomes irrelevant and would tend to give wrong market signals. The CPI is an indicator that derives its usefulness from its representation of how much a typical market basket behaves over a specific period of time.

Economic, social and technological changes may have influenced Filipinos’ tastes and preferences and these, in effect may have resulted in changes in the consumption patterns of the population. As household expenditure patterns vary (they tend to spend less on some items and more on others), weights are used to ensure that the CPI reflects the relative importance of each item or group of items in the market basket. The weights are expressed as a proportion of household expenditure for an item to the total national expenditure.

The rebasing of the CPI from 2006 to 2012 is in consonance with the recommendation of the PSA Board in its Resolution No. 01 series of 2017-146 (Approving the Synchronized Rebasing of Price Indices to Base Year 2006 and every six (6) years thereafter) to reflect the latest composition of goods and services consumed and availed of by households across provinces of the country.

The main data source of consumption pattern (CPI weights) for this latest rebasing was the 2012 Family Income and Expenditure Survey (FIES). Meanwhile, the Survey of Key Informants was conducted from 07 October to 15 November 2013 to determine the commodities that will form the market basket for the 2012-based CPI.