Consumer Price Index

CPI Press Release

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

Release Date: 7 July 2022
Reference Number: 2022-SR22-011

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.)

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.