Siquijor CPI increases at 133.5 in December

The survey of retail prices of commodities conducted by Philippine Statistics Authority (PSA) in Siquijor Province has generated a CPI of 133.5 in December 2021 using 2012 as the base year. It was the highest CPI in the fourth quarter of 2021 compared to 133.3 November and 132.8 in October.  From October 2021 the CPI increased by 0.5 in November and continuously increased by 0.7 in December 2021.  

CPI is an indicator of the changes in the average retail prices of a fixed basket of goods and services commonly purchased by Siquijodnons relative to the base year. Thus, CPI implied that the cost of a basket of goods and services commonly purchased by typical Filipino households in the Province of Siquijor, with an average value at 100 in 2012, was at 133.5 in December 2021.
Figure 1:  Consumer Price Index (CPI) for all Items:  Siquijor, October 2020 to December 2021

Alcoholic Beverages and Tobacco contributed with the highest index

As shown in Table 1 below, commodities under Alcoholic Beverages and Tobacco remains with the highest CPI during fourth quarter of 2021 with194.9 in October, 195.1 in November and slightly increased at 195.2 in December. This is followed by the commodity group of Furnishings, Household Equipment and Maintenance of the House which recorded a CPI at 142.3 in the fourth quarter of 2021.  Housing, Electricity, Gas and other Fuels placed in third with CPI at 137.1 in October to November and increased in December at 137.3.  Food and Non-Alcoholic Beverages showed a big increase from 129.7 in October then goes up in November with 130.7 and goes higher in December with 132.2. Others sub-groups were lesser than 130.0 level. Lowest CPI is the sub-group in Recreation and Culture with 111.4 in December.  See table 1 for the complete list of CPI by commodity group.

Siquijor Province Inflation remains at 3.0 percent in November and December 2021

Siquijor inflation in December 2021 remained at 3.0 percent from the previous month, November 2021, but with slight increase from October 2021 with inflation at 2.9 percent.  From the same period in December 2020 the inflation was slightly low at 2.0 percent. The inflation in October last year was at 2.4 percent and decreased to 1.7 percent in November 2020.

Inflation Rate is the rate of change of the CPI expressed in percent.  See Table 2 for the year on year inflation rate for all items.

Figure 2 below shows the graph of Inflation Rate from October 2020 to December 2021.

Purchasing Power of Peso (PPP) remains at 0.75 in Fourth Quarter of 2021

For the past three months, October 2021 to December 2021, the purchasing power of peso in Siquijor Province remains at 0.75.  Fourth quarter of 2021 PPP has lowered by two centavos from same quarter in 2020 with a PPP of 77 centavos.

With the value of Php 1.0 in 2012, as the base year, PPP values only at Php 0.75 in October to December 2021.  See Table 3 for the comparable fourth quarter data of PPP for 2020-2021.

Purchasing Power of Peso (PPP) is computed as the reciprocal of the CPI multiplied by 100.   The PPP is inversely related to inflation rate.  Thus, as the inflation rate increases, PPP declines.

Figure 2 below shows the declining graph of purchasing power of peso from October 2020 to December 2021.

TECHNICAL NOTES

Uses of CPI

The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso.  It is a major statistical series used for economic analysis and as monitoring indicator of the government economic policy.

Computation of CPI

The computation of CPI involves consideration of the following important points:

a.    Base Period – The reference date or base period is the benchmark or reference date or period at which the index is taken as equal to 100.

b.    Market Basket – A sample of the thousands of varieties of goods purchased for consumption and the services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers.

c.    Weighting System – The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.

d.    Formula – The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2012) weights.

e.    Geographic Coverage – CPI values are computed at the national, regional, and provincial levels, and or selected cities.