Release Date :
Reference Number :
PSAXSR-2019-01
The price of a basket of goods in December 2018 in Northern Mindanao is higher than its prices in 2012 by 24.0 percent…
The year-on-year Consumer Price Index (CPI) in Northern Mindanao for the period of November 2017 and 2018 and December 2017 and 2018 is displayed in Figure 1. December 2018 CPI
recorded at 124.0. This implies that the price of goods in December 2018 was 24.0 percent higher than the price of goods in 2012.
December 2018 inflation rate accelerates by 2.6 percentage points from the recorded inflation in the previous year…
Figure 2 shows the December 2018 inflation rate accelerated by 2.6 percentage points from the recorded rate in the previous year registering at 5.7 percent from 3.1 percent of the same period
in the previous year.
Misamis Occidental recorded the highest CPI in December 2018 at 125.6…
As shown in Figure 3, Misamis Occidental recorded the highest CPI in December 2018 at 125.6, followed Bukidnon at 124.1, among the provinces. On the other hand, Camiguin recorded the lowest CPI in December 2018 at 121.3.
Camiguin posted the highest increase of inflation by 5.4 percentage points from 1.5 percent of the previous year…
In terms of inflation, in December 2018, Bukidnon had the highest inflation at 7.2 percent. The inflation rate of Bukidnon accelerated by 4.7 percentage points from its recorded inflation in the previous year 2.5 percent. Meanwhile, Misamis Oriental recorded the lowest inflation rate in December 2018 at 4.8 percent, such rate increased by 2.5 percentage point compared to the recorded inflation
of 2.3 percent in the previous year. On the other hand, Camiguin posted the highest increase of inflation by 5.4 percentage points, that is, from 1.5 percent in December 2017 to 6.9 percent in December 2018. (See Figure 4)
PURCHASING POWER OF PESO (PPP)
The real value of the peso in Northern Mindanao in December 2018 is 81 centavos, a decrease of 4 centavos from its value last December 2017 of 85 centavos. Among the provinces, Camiguin recorded the highest PPP at 82 centavos while Misamis Occidental recorded the lowest PPP at 80 centavos. However, the PPP of the three provinces (Bukidnon, Lanao del Norte and Misamis Oriental) posted at 81 centavos, as shown in Figure 5.
BY COMMODITY GROUP
Among the commodity groups, Alcoholic Beverages and Tobacco registered the highest CPI in December 2018 at 191.0. This means that the prices of Alcoholic Beverages and Tobacco in December 2018 were 91.0 percent higher than its prices recorded in 2012. On the other hand, Communication registered the lowest CPI at 105.8, showing the slowest movement of price from the base year 2012. (See Figure 6)
In terms of inflation, Alcoholic Beverages and Tobacco registered the highest inflation in December 2018 at 16.6 percent, followed by Restaurant and Miscellaneous Goods and Services at 9.8 percent. Housing, Water, Electricity, Gas, and Other Fuels and Health registered 7.0 percent and 6.1 percent inflation, respectively, in December 2018. Meanwhile, Education recorded the lowest inflation rate
at -10.2 percent. The CPI of Communication in December 2018 still the same of what was recorded in the previous year at 105.8 resulted to its inflation of 0 percent.
Other Commodity groups recorded the following inflation rates: Food and Non-Alcoholic Beverages (6.0 percent); Transport (4.5 percent); Recreation and Culture (4.4 percent); Clothing and Footwear (4.0 percent); and Routine Maintenance of the House (3.7 percent).
CPI AND INFLATION IN JANUARY TO DECEMBER, 2018
Figure 7 shows the trend of CPI in Northern Mindanao from January to December 2018, with 2012 as the base year. It tells us that there was a consistent increase in the CPI of the region within the period January to October 2018. It reached to 125.1 for the month of October 2018. However, it decreased starting from November posted 124.5 to 124.0 in December 2018.
Likewise, the inflation rate of Northern Mindanao from January to October constantly increased except in April 2018. The lowest inflation rate was in January 2018 posted at 3.4 percent. However,
it reached to 7.6 percent in October 2018 as can be observed in Figure 8. On the other hand, it decreases starting from November to December 2018.
The annual average of the Consumer Price Index for 2018 was 121.6, indicating that the price of a basket of goods in Region X for 2018 is 21.6 higher than its prices in 2012. Also, the annual average inflation rate for 2018 was 5.3 percent, which means that the prices of goods in 2018 were 5.3 percent higher than the prices in 2017. Moreover, the inflation rate in 2018 was higher than the recorded inflation in 2017 of 3.0 percent. This means that the rate of price of increase in 2018 was faster than the rate of price increase in 2017.
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.
Uses 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 date or base period is the benchmark or reference date or period at which the index is taken as equal to 100.
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. Weighting System -The weighting 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- 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.
BRENDA LYNN M. CASTRO
(Supervising Statistical Specialist)
Officer-in-Charge
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