Inflation Rate in Region 10 for January 2019 is 4.6 Percent

The Consumer Price Index for Region X in January 2019 was 124.0. This was of the same index as with last December 2018. However, the CPI last January 2018 was 118.5, translating to an inflation rate of 4.6 percent in Region 10 for January 2019. This inflation rate was 1.1 percentage points lower compared to December 2018, but 1.2 percentage points higher than in January 2018.

Region 10 ranks 7^th highest in inflation rate in the Philippines

Across regions, The Autonomous Region of Muslim Mindanao (ARRM) recorded the highest inflation in the Philippines in January 2019 with 6.1 percent. This was followed by Region IV-B by 5.6 percent. Regions IX and CAR were at the bottom two for the inflation rates, with 3.6 and 3.1, respectively.

Education deflated at 10.23 in January 2019, Communication has no movement

Among commodity groups, the Alcoholic Beverages and Tobacco displayed the highest inflation rate in Region 10 for January 2019 at 12.8 percent. This was followed by the Restaurant and Miscellaneous Goods and Services at 8.2 percent. The inflation rate for Food and Non-alcoholic Beverages was 4.5 percent. Communication showed no movement in the prices for January 2019 when compare to the same period last year. On the other hand, Education deflated by as much as 10.2 percent in January 2019, which was the only commodity that had a negative inflation rate in January 2019.

Inflation Rate in Region 10 is highest at Bukidnon

Among the five provinces in Region 10, Bukidnon had the highest inflation in January 2019 with 6.4 percent. This was followed by Camiguin at 5.0 percent, Lanao del Norte at 4.5 percent then Misamis Occidental at 4.2 percent. Misamis Oriental had the lowest inflation rate in Region 10 for January 2019 with an inflation rate of 3.6 percent.

Purchasing Power of Peso in Region 10 is ₱ 0.81

Camiguin had the strongest PPP in Region 10 for January 2019 with ₱ 0.83. This means that the worth of one peso in 2012 was now worth ₱ 0.17 less. Bukidnon, Lanao del Norte and Misamis Oriental had the same PPP at ₱ 0.81. Misamis Occidental recorded a ₱ 0.80 PPP.

Figure 6 shows the trend of increase in price of a 100-peso worth of basket of goods in Region 10 in 2012. The graph shows that in January 2017, the 100-peso worth basket of good last 2012 can be purchased for 14.6 pesos more. In January 2018, the same 100-peso worth basket of good was now priced at 18.5 pesos more than in 2012. Between the periods January 2017-January 2019, the same basket of good had the highest increase in October 2018 at 25.1 pesos more than in 2012. After this said month, there was a change in the trend of price increase for the basket of good. The basket of good which cost 125.1 last October 2018 now cost lesser at 124.0 in January 2019.

JANITH C. AVES, CE, DM
Officer-in-Charge

For the Regional Director

(Sgd) GERASOL LOURDES G. MUGOT
(Senior Statistical Specialist)
OIC-SOCD

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 - The 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 date 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. Weighting System -The weighting 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 - 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.

For further inquiries, you may contact:

Statistical Operations & Coordination Division
Philippine Statistics Authority Regional Statistical Service Office 10
2nd Floor, Bldg. 4, Pride Rock Business Park
Gusa Highway, Cagayan de Oro City

Email: psaregion10@gmail.com
Telefax: (088) 856-4778