Tuesday, July 30, 2019
Figure 1 shows the Consumer Price Index in Northern Mindanao for the period of May 2018 & 2019 and June 2018 & 2019. June 2019 CPI posted at 125.2 which imply that the price of a basket of goods in March was 25.2 percent higher than the price of goods in 2012.
Among the commodity groups, Alcoholic Beverages and Tobacco registered the highest CPI in June 2019 at 195.6, followed by Housing, Water, Electricity, Gas, and Other Fuels at 140.2 and Health at 129.6 On the other hand, Recreation and Culture with 113.8, Transport at 107.2 and Communication at 106.0 were the bottom three with the lowest CPI registered, respectively, in June 2019 (Figure 2).
Table 1 presents the Consumer Price Index of Commodity Groups by province in Northern Mindanao for the month of June 2018 and 2019. Among the provinces, Misamis Occidental recorded the highest CPI in June 2019 at 128.1. Meanwhile, Misamis Oriental posted a CPI of 125.6 from 120.9 of June 2018. On the other hand, the province of Camiguin remained the lowest registered CPI (Table 1).
Figure 3 displays the Inflation rate of all items in Northern Mindanao from June 2018 to June 2019. The region’s inflation rate reduces by 1.2 percentage points from 4.9 percent same period last year to 3.7 percent in June 2019.
Among all the provinces in Northern Mindanao, the province of Misamis Occidental displays the highest inflation rate at 4.4 percent in June 2019, followed by the province of Bukidnon at 4.1 percent, Misamis Oriental at 3.9 percent and Lanao del Norte at 2.6 percent. Meanwhile, the province of Camiguin posted the lowest inflation rate at 2.4 percent in June 2019 (Table 2).
PURCHASING POWER OF PESO (PPP)
The Purchasing Power of Peso (PPP) in Northern Mindanao dropped to P0.80 in June 2019 from P0.83 in the previous year. This value means that the goods and services that is worth one peso (P1.00) in the year 2012, decreases and worth eighty centavos (P0.80) in June 2019. Also, it means that a basket of goods bought worth 100 pesos in the year 2012, is worth 125.2 pesos in June 2019.
Among the provinces, all of the provinces demonstrated a declined trend from June 2018 to June 2019 as shown in Figure 4 below.
The Purchasing Power of Peso in June 2019, among the provinces, the province of Camiguin has the lowest declined by 0.02 pesos while the other four provinces declined by 0.03 pesos.
(Sgd.) JANITH C. AVES, CE, DM
(Chief Statistical Specialist)
Consumer Price Index (CPI) – The CPI is an indicator of the changes in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.
Used of CPI – CPI is most widely used in the calculation of the inflation rate and purchasing power of peso. It is a major statistical series used for economic analysis and as a monitoring indicator of government economic policy.
Computation of CPI – The computation of the CPI involves consideration of the following important points:
a. Base Period – The reference data or base period is the benchmark or reference date or period at which the index is taken as equal to100.
b. Market Basket – A sample of the thousands of varieties of goods purchased for consumption and services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers.
c. Weighing System – The weighing pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.
d. Formula – The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2012) weights.
e. Geographic Coverage – CPI values are computed at the national, regional, and provincial levels, and for selected cities.
Inflation Rate (IR) – is the rate of change of the CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of peso.
Purchasing Power of Peso (PPP) – shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.
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