The CPI in Misamis Occidental for the month of August 2023 increased to 123.6 from 122.6 in the previous month. A CPI of 123.6 implies that the same basket of goods and services worth 100 pesos in 2018 had increased by 23.6 percent in August 2023. Compared to the CPI recorded in the months of July and August 2022, it increased from 117.5 and 118.3 to 122.6 and 123.6 in July and August 2023, respectively. 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.

Among the commodity groups, Alcoholic Beverages and Tobacco posted the highest CPI in August 2023 at 166.6, followed by Financial Services at 146.0, and Restaurants and Accommodation Services at 134.4. On the other hand, Information and Communication at 113.9, Recreation, Sport, and Culture at 105.4 and Education Services at 104.7 were the bottom three commodity groups with the lowest CPI recorded in the month of August 2023.

August 2023 Inflation Rate (IR) in the Province Increased at 4.5 percent

Provincial inflation in August 2023 slightly increased to 4.5 percent from 4.3 percent in July 2023. Furthermore, it is slower by 2.5 percentage points compared to 7.0 percent in August 2022. Inflation is the rate of increase in prices over a given period of time.

Purchasing Power of Peso (PPP) Dropped to PhP0.81 in August 2023

The Purchasing Power of Peso (PPP) shows the real value of peso relative to the base period. The PPP in Misamis Occidental in August 2023 dropped to PhP0.81, a decrease of PhP0.01 from PhP0.82 in the previous month. Moreover, it is lower by PhP0.04 compared to PhP0.85 last August 2022. A PPP of PhP0.81 means that a consumer’s PhP100.00 in 2018 can only purchase PhP81.00 worth of goods and services in August 2023.

Prepared by:

(SGD)MARK LESTHER P. PATIC
Statistical Analyst (COSW)

Approved by:

(SGD)JULIETA M. NACARIO 
Supervising Statistical Specialist
Officer-In-Charge
Provincial Statistical Office – Misamis Occidental

Table 1. Consumer Price Index for All Commodity Groups, Misamis Occidental:
July and August 2023 (2018=100)

TECHNICAL NOTES

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.

Use 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:

1. Base Period – The reference data or base period is the benchmark or reference date or period at which the index is taken as equal to 100.
2. 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.
3. Weighing System – The weighing pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.
4. 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.
5. 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.