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 decelerated in the month of May 2022
The inflation rate in Mandaue City continued its downward trend as it decelerated further to 3.2 percent in May 2022, from 3.3 percent in April 2022. Inflation rate in the city is lower compared to the inflation rate in Central Visayas at 5.3 percent in the same period. The average inflation from January to May 2022 remained at 3.7 percent. (See Table A.)
January 2022 had the highest inflation at 4.9 percent
A downward movement of the inflation rate was noted in the city from February 2022 at 3.5 percent to May 2022 at 3.2 percent, respectively. The month of January had the highest inflation among months from May 2021 to May 2022 reaching 4.9 percent. (See Figure 1 and Table B.)
The decrease in the inflation in Mandaue City is driven by Alcoholic Beverages and Tobacco
The slowdown in the inflation was mainly due to the decrease in the inflation in Alcoholic Beverages and Tobacco at 3.4 percent in May 2022, from 5.1 percent in April 2022. Also, contributing to the downward trend was the lower increments registered in the indices of the following commodity groups:
Food and Non-Alcoholic Beverages, 4.5 percent
Clothing and Footwear, 0.1 percent
Housing, Water, Electricity, Gas, and Other Fuels, 1.7 percent
Health, 0.1 percent
Personal Care, and Miscellaneous Goods and Services, 0.2 percent
Meanwhile, indices of these commodity groups retained their previous month’s inflation rates:
Furnishings, Household Equipment and Routine Maintenance of the House, 0.1 percent
Restaurants and Accommodation Services, 0.2 percent
On the other hand, increase was higher in Transport at 14.3 percent in May 2022, from 12.9 percent in April 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 C)
May 2022 CPI in Mandaue City was recorded at 107.6
The Consumer Price Index (CPI) in Mandaue City was posted at 107.6 in May 2022. This means that on average, prices of goods and services in the province increased by 7.6 units from the base year 2018 at 100. This was higher than the CPI from the previous month at 107.5. The month of January had the highest CPI in Mandaue City at 107.7 for the period May 2021 to May 2022. (See Figure 2.)
PPP in the Mandaue City remained constant at 0.93
Mandaue City’s Purchasing Power of Peso (PPP) remained at 0.93 for May 2022, indicating that a peso in 2018 in only worth 0.93 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 93.00 in May 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
OIC- Chief Statistical Specialist
