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 climbs to 3.6% in June 2022
Mandaue City’s inflation rate increased to 3.6 percent in June 2022, posting a slight growth from 3.2 percent in May 2022. It showed a 2.4 percentage points higher than the 1.2 percent inflation rate recorded in the same month last year. (See Figure 1.)
The increase in the inflation in Mandaue City is driven by Transport
The step up in the inflation was mainly due to upsurge in the inflation in Transport at 16.7 percent in June 2022, from 14.3 percent in May 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, 5.4 percent
- Alcoholic Beverages and Tobacco, 5.0 percent
- Furnishing, Household Equipment and Routine Household Maintenance, 0.4 percent
Meanwhile, indices of these commodity groups retained their previous month’s inflation rates:
- Clothing and Footwear, 0.1 percent
- Health, 0.1 percent
- Restaurants and Accommodation Services, 0.2 percent
- Personal Care, and Miscellaneous Goods and Services, 0.2 percent
On the other hand, decrease was posted in Housing, Water, Electricity, Gas, and Other Fuels at 1.4 percent in June 2022, from 1.7 percent in May 2022.
Indices among commodity groups: Information and Communication; Recreation, Sport and Culture; Education Services; and Financial Services posted a constant inflation at 0 percent. (See Table B.)
May 2022 CPI in Mandaue City recorded at 108.3
The Consumer Price Index (CPI) in Mandaue City was recorded at 108.3 in June 2022. Moreover, a higher index by 3.8 points is generated in June 2022 compared to generated from the same month in 2021. This month had the highest CPI in Mandaue City for the period June 2021 to June 2022. (See Figure 2.)
PPP in the Mandaue City posted at 0.92
Mandaue City’s Purchasing Power of Peso (PPP) posted at 0.92 for June 2022, indicating that a peso in 2018 in only worth 0.92 centavos 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 June 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)