Release Date :
Reference Number :
PSALDN-SR-2023-03-001
CONSUMER PRICE INDEX (CPI)
Lanao del Norte’s Consumer Price Index posted at 121.7 for the month of February, which implies that the price of one basket of goods was 21.7 higher than the price of goods in the year 2018.
The Consumer Price Index (CPI) is used as an indicator to measure the changes in the average retail prices of one basket of goods and services over time that consumers commonly pay. Figure 1 shows the consumer price index in the province for the period of February 2022 and 2023, with 2018 as the base year.
Among the commodity groups, Alcoholic Beverages and Tobacco registered the highest CPI in February 2023 at 150.6 followed by Financial Services at 146.0, and Transport at 132.4. On the other hand, Clothing and Footwear at 116.0, Education Services at 106.0, and Information and Communication at 101.8 were the bottom three with the lowest CPI posted in the month of February 2023 as shown in figure 2.
Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index, Philippine Statistics Authority
INFLATION RATE (IR)
The inflation rate refers to the percent change in the average prices of goods and services purchased by consumers compared to prices a year ago. Figure 3 below displays the Inflation rate for all items in the province between February 2022 and February 2023. The inflation rate of the province of Lanao del Norte in February 2023 is at 8.4 percent, higher than its average retail price in February 2022 which is 3.3 percent. Also, the increasing trend line is evident in figure 3 which shows that the inflation rate in all items in Lanao del Norte has increased throughout the year.
Inflation occurs mostly when goods and services are in high demand giving a rise to a drop-in availability in the market. This may be caused by any reason like natural phenomena and/or man-made calamities.
PURCHASING POWER OF PESO (PPP)
The Purchasing Power of Peso (PPP) shows how much the currency of peso is worth in the current period based on the year 2018. The PPP in the province of Lanao del Norte is at P0.82 for the month of February 2023. This value means that the goods and services that are worth one peso (P1.00) in the year 2018, the current value of it decreases to eighty-two centavos (P0.82).
Figure 4 above shows the year-on-year purchasing power of peso of the province between February 2022 and 2023.
The province of Lanao del Norte had remained its purchasing power of peso declining at 0.82 centavos for the month of February 2022. This also implies that the consumers in the province had to increase their usual costs in order to attain the same quality of living.
Purchasing power has a great impact on different aspects of the economy. A massive decrease in purchasing power caused by excessive inflation may lead to an economic crisis.
OSLER M. MEJARES
Chief Statistical Specialist