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 1.7%
Inflation rate in Lapu-Lapu City in all items, further increased to 1.7 percent in June 2022, this is higher compared to 1.5 percent in May 2022. An increase of 0.6 percentage points compared to the inflation in June 2021 at 1.1 percent. The average inflation from January to June 2022 remained at 1.5 percent. (See Table A.)
Lowest inflation recorded in the month of December 2021
An up and down movement of the inflation was noted for the period of June 2021 to June 2022. The lowest inflation was recorded in the month of December 2021 at 0.6 percent of the same period. (See Figure 1. and Table B.)
Lapu-Lapu City’s inflation is driven by Transport
The upsurge in the inflation was mainly driven by the increase in the inflation of Transport index from 14.2 percent in May 2022 to 16.3 percent inflation in June 2022. Meanwhile, indices of the rest of the commodity groups retained their previous month’s inflation rates:
o Health, 0.6 percent
o Information and Communication, 0.1 percent
o Recreation, Sport and Culture, 0.5 percent
o Personal Care, and Miscellaneous Goods and Services, 0.2 percent
Indices among commodity groups: Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; Education Services; Restaurants and Accommodation Services, Financial Services at 0.0 percent.
On the contrary, decrease in the inflation both recorded in Alcoholic Beverages and Tobacco at 1.8 percent in June 2022, from 1.9 percent in May; and Housing, Water, Electricity, Gas, and Other Fuels at 4.4 percent in June 2022, from 4.1 percent in May 2022. (See Table C.)
CPI in June 2022 in Lapu-Lapu City was recorded at 106.3
The Consumer Price Index (CPI) in Lapu-Lapu City was posted at 106.3 in June 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 106.3 in June 2022. The CPI in June 2022 is higher compared to the CPI in the month of May 2022 at 106.0. The month of June 2022 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 remained constant at 0.94 for the month of June 2022 compared to May 2022. The PPP in the city for the period June 2021 to June 2022 showed an up and down trend from 0.96 in June 2021 to 0.94 in 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
