Consumer Price Index (CPI) in Misamis Occidental increased to 126.2

The CPI in Misamis Occidental for the month of March 2024 increased to 126.2 from 125.8 in the previous month. A CPI of 126.2 implies that the same basket of goods and services worth 100 pesos in 2018 had increased by 26.2 percent in March 2024. Compared to the CPI recorded in the months of February and March 2023, it increased from 123.2 and 123.4 to 125.8 and 126.2 in February and March 2024, 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. (Figure 1)

Among the commodity groups, Alcoholic Beverages and Tobacco posted the highest CPI in March 2024 at 177.2, followed by Financial Services at 146.0, and Restaurants and Accommodation Services at 134.6. On the other hand, Information and Communication at 116.1, Recreation, Sport, and Culture at 107.2 and Education Services at 105.1 remained the bottom three commodity groups with the lowest CPI recorded in the month of March 2024. (Figure 2)

March 2024 Inflation Rate (IR) in the province rose to 2.3 percent

Provincial inflation in March 2024 rose to 2.3 percent from 2.1 percent in February 2024­­­­­. Furthermore, it is lower by 5.3 percentage points compared to 7.6 percent in March 2023. Inflation is the rate of increase in prices over a given period of time. (Figure 3)

Purchasing Power of Peso (PPP) maintained at PhP0.79 in March 2024

The Purchasing Power of Peso (PPP) shows the real value of peso relative to the base period. The PPP in Misamis Occidental in March 2024 retained its value from the previous month at PhP0.79. A PPP of PhP0.79 means that a consumer’s PhP100.00 in 2018 can only purchase PhP79.00 worth of goods and services in March 2024. (Figure 4)

Prepared by:

(SGD)MARK LESTHER P. PATIC
COSW

Approved by:

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

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 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.