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 Lapu-Lapu City further accelerated to 1.5%
Inflation rate in Lapu-Lapu City in all items, further accelerated to 1.5 percent in May 2022, compared to 0.9 percent in April 2022. An increase of 0.6 percentage points from the inflation in April 2022 and a decreased of 0.3 percentage points in the inflation in May 2021 at 1.8 percent. The average inflation from January to May 2022 remained at 1.5 percent. (See Table A.)
Highest inflation recorded in the month of January 2022
An up and down movement of the inflation was noted for the period of May 2021 to May 2022. The highest inflation was recorded in the month of January 2022 at 2.8 percent of the same period. (See Figure 1 and Table B.)
Lapu-Lapu City’s inflation is driven by Transport and Furnishing, Household Equipment and Routine Household Maintenance
The upsurge in the inflation were mainly driven by the increase in the inflation for Transport at 14.2 percent; and Housing, Water, Electricity, Gas, and Other Fuels at 4.4 percent.
Meanwhile, inflation slowed down in the following indices:
- Food and Non-Alcoholic Beverages at -1.9 percent.
- Alcoholic Beverages and Tobacco at 1.9 percent.
- Clothing and footwear at 0.0 percent.
- Furnishing, Household Equipment and Routine Household Maintenance at 0.0 percent
- Health at 0.6 percent
- Personal Care, and Miscellaneous Goods and Services at 0.2 percent.
The rest of the commodity groups remained constant from their previous month’s inflation rates. (See Table C.)
CPI in May 2022 in Lapu-Lapu City was recorded at 106
The Consumer Price Index (CPI) in Lapu-Lapu City was posted at 106 in May 2022. This implies that the cost of a basket of goods and services commonly purchased by typical households in the city, with an average value at 100 in the year 2018, is worth 106 in May 2022. A 0.9 percent increase in the CPI was noted for the month of May 2022 compared to the month of April 2022 at 105.1. The month of May had the highest CPI in Lapu-Lapu City. (See Figure 2.)
PPP in the city was recorded at 0.94 in May 2022
Purchasing power of peso (PPP) in Lapu-Lapu City was recorded at 0.94 for the month of May 2022 which is lower compared to the PPP in April 2022 at 0.95. The PPP in the city for the period May 2021 to May 2022 showed an up and down trend from 0.96 in May 2021 to 0.94 in May 2022. The month of May had the lowest PPP in the city of the same period. (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
