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.

1. The Philippines

The headline inflation in the Philippines continued its uptrend as it moved up to 8.1 percent in December 2022, from 8.0 percent in November 2022. This is the highest inflation rate reported for 2022 and the highest since November 2008. Inflation in December 2021 was lower at 3.1 percent (Table A).

 The Philippines’ average inflation rate from January to December 2022 stood at 5.8 percent.

2. Central Visayas

Inflation in Central Visayas accelerated to 8.5 percent in December 2022, from 8.3 percent in November 2022. This is the highest reported regional inflation since October 2008. In December 2021, the inflation rate in the region stood at 2.2 percent (Table A, B and Figure 1). 

With this month’s inflation, the region’s average inflation from January to December 2022 stood at 6.6 percent.

The acceleration of the regional inflation in December 2022 was mainly due to the higher year-on-year growth rates in the indices of Food and Non-alcoholic Beverages which retained its previous month’s inflation rate at 11.2 percent, Housing, Water, Electricity, Gas and Other fuels at 9.7 percent, from 8.7 percent in November 2022 and Restaurants and Accommodation Services with an inflation rate of 6.9 percent in December 2022, from 6.8 percent inflation in the previous month (Table 3).

Moreover, relative to their annual rates in December 2022, annual increases were also higher in the indices of the following commodity groups (Table 3):

a.  Alcoholic Beverages and Tobacco, 9.9 percent;

b.  Furnishing, Household Equipment and Routine Household Maintenance,      4.6 percent;

c.  Health, 2.5 percent;

d.  Recreation, Sport and Culture at 1.9 percent;

e.  Personal Care, and Miscellaneous Goods and Services; 3.5 percent.

On the other hand, slower year-on-year increases was observed in the index of Transport at 6.3 percent (Table 3).

Meanwhile, the indices of Clothing and Footwear, Information and Communication, Education Services, and Financial Services retained its previous month’s inflation rate at 2.5 percent, 1.2 percent, 5.2 percent, and 0.0 percent, respectively (Table 3).

Faster annual growth rates were observed in the following food groups (Table 5):

a.    Rice, 2.8 percent;

b.    Flour, bread and other bakery products, pasta products, and other cereals, 10.2 percent;

c.    Milk, other dairy products and eggs, 4.2 percent;

d.    Oils and fats, 25.4 percent;

e.    Vegetables, tubers, plantains, cooking bananas and pulses, 17.2 percent;

f.     Sugar, confectionery and desserts, 44.5 percent; and

g.    Ready-made food and other food products n.e.c., 7.2 percent.

On the other hand, the following food groups exhibited lower annual increases during the month (Table 5):

a.    Corn, 49.4 percent;

b.    Meat and other parts of slaughtered land animals, 12.5 percent;

c.    Fish and other seafood, 5.2 percent; and

d.    Fruits and nuts,11.4 percent.

Inflation for food at the regional level decreased to 11.5 percent in December 2022, from 11.7 percent in November 2022. In December 2021, food inflation was lower at 3.1 percent (Table 7).

3. By Province

Compared with the respective previous month’s annual rates of the provinces and Highly Urbanized Cities (HUCs) of Central Visayas, Cebu Province and the City of Cebu exhibited lower inflation in December 2022 (Figure 2).

Among the provinces, Negros Oriental posted the lowest inflation rate during the month at 7.9 percent while Bohol and Cebu had the highest inflation rate at 10.4 percent (Figure 2).

Moreover, among the HUCs in Central Visayas, the City of Mandaue retained its previous month’s annual rate posting the lowest inflation rate at 4.4 percent, followed by the City of Cebu at 5.1 percent. The highest inflation rate was noted in the City of Lapu-Lapu at 6.0 percent (Figure 2).

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 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.

Retail Price is the price at which a commodity is sold for spot in small quantities for consumption.

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.

Market Basket is a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.

Weight is a value attached to a commodity or ground of commodities to indicate the relative importance of that commodity or group of commodities in the market basket.

Inflation Rate 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,

Headline Inflation is the rate of change in the weighted average prices of all goods and services in the CPI basket. 

Approved by:

(SGD.) ARIEL E. FLORENDO
Regional Director