Cebu’s CPI reached to 130.3 in October 2021

In Cebu province, the CPI for the month of October 2021 reached to 130.3 in all items and in all income households this is higher compared to the CPI in September 2021 at 130.1 with a monthly percent change of 0.2%. A cumulative CPI was observed from October 2020 until October 2021 in which the month of October 2021 recorded the highest CPI at 130.3 from the series. (See Figure 1)

Higher indices in the commodity groups

The increase in the CPI in the month of October 2021 was mainly driven by the increase of the CPI in almost all of the commodity groups. Commodity group alcoholic beverages and tobacco recorded the highest CPI among commodity groups in Cebu province in the month of October 2021 with 231.8. This resulted to an inflation rate of 5.8% from the CPI in October 2020 at 219.1. On the other hand, the commodity group furnishings, household equipment and routine maintenance of the house posted the highest inflation among commodity group at 8.7% from 136.9 in October 2020 to 148.8 in October 2021. Indices in commodity groups: communication, recreation and culture, and education posted a constant index with 102, 103.4, and 126.1 respectively, compared to the index in October 2020. (See Table 1)

Year on Year Inflation rate in Cebu Province further accelerated to 3.6%

The inflation rate in Cebu Province further accelerated to 3.6% in October 2021 compared to 3.4% in September 2021. The inflation was higher by 2.6 percentage points compared to the inflation rate in October 2020 at 1.0%. (See Table 2)

Highest inflation recorded in the month of October 2021

An up and down movement of the inflation rate was noted for the period October 2020 until October 2021 in which October 2021 had the highest inflation recorded at 3.6%. The year-to-date average inflation from January to October 2021 was at 1.6%. (See Figure 2)
 

PPP in Cebu province remains constant at 0.77 in October 2021

Purchasing power of peso in Cebu province for the month of October 2021 remains constant at 0.77 compared to the month of September 2021.  The PPP in Cebu province for the period October 2020 to October 2021 showed a decreasing trend from 0.79 in the months of October 2020 until January 2021 to 0.77 in the months of May to October 2021. (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,

(SGD) FIRMO C. DIPUTADO
Chief Statistical Specialist