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 Cebu Province further accelerated to 8.6%

The inflation rate in Cebu Province excluding its highly urbanized cities namely Cebu City, Lapu-Lapu City and Mandaue City, in all items, continued to move to a faster pace at 8.6 percent in June 2022, compared to 8.3 percent in May of the same period. This brings the provincial average inflation from January to June 2022 at 8.0 percent. In June 2021 the inflation was lower at 0.7 percent. (See Table A.)

Highest inflation recorded in the month of February and June 2022

An up and down movement of the inflation rate was noted in the province for the period of January to June 2022. The same inflation was noted in the month of February and June 2022 at 8.6 percent for the period June 2021 to June 2022 which is also the highest inflation of the same period. 
(See Figure 1 and Table B.)

The increase of the inflation in Cebu was driven by Transport and Food and Alcoholic Beverages

The upsurge in the inflation in Cebu province was mainly driven by the increase in the inflation for Transport, and Food and Non-Alcoholic Beverages with 30.5 percent and 12.8 percent, respectively, in June 2022, compared to 29.0 percent and 12.3 percent in May of the same period.

Indices in the following commodity groups remained constant in June 2022 from their previous month’s inflation rates:

• Alcoholic Beverages and Tobacco, 1.1 percent

• Clothing and Footwear, 0.1 percent

• Furnishing, Household Equipment and Routine Household Maintenance, 2.6 percent

• Health, 0.3 percent

• Restaurant and accommodation services, 2.3 percent

• Personal Care, and Miscellaneous Goods and Services, 0.8 percent and

• Information and Communication; Recreation, Sport and Culture; Education Services; and

• Financial Services, 0.0 percent.

Meanwhile, inflation slowed down in the index of Housing, Water, Electricity, Gas and Other Fuels at 1.9 percent. (See Table C.)

June 2022 CPI in Cebu was recorded at 113.5

The Consumer Price Index (CPI) in Cebu province was posted at 113.5 in June 2022. This means that on average, prices of goods and services in the province increased by 13.5 units from the base year 2018 at 100. This was higher than the 113.1 from the previous month. The month of June had the highest CPI in Cebu for the period June 2021 to June 2022. (See Figure 2.)

PPP in Cebu province remained at 0.88 in June 2022

The purchasing power of peso (PPP) in Cebu province remained constant at 0.88 for the month of June 2022 compared to the PPP in May 2022. The PPP in Cebu province for the period June 2021 to June 2022 showed a decreasing trend from 0.96 in the months of June to October 2021 to 0.88 in May and 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