Consumer Price Index (CPI) in Misamis Occidental Eased at 123.9
The CPI in Misamis Occidental for the month of January 2024 slightly increased to 123.9 from 123.6 in the previous month. A CPI of 123.9 implies that the same basket of goods and services worth 100 pesos in 2018 had increased by 23.9 percent in January 2024. Compared to the CPI recorded in the months of December 2022 and January 2023, it increased from 120.1 and 123.6 to 123.6 and 123.9 in December 2023 and January 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 January 2024 at 171.4, 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 were the bottom three commodity groups with the lowest CPI recorded in the month of January 2024. (Figure 2)
January 2024 Inflation Rate (IR) in the Province sank at 0.2 percent
Provincial inflation in January 2024 dropped to 0.2 percent from 2.9 percent in December 2023. Furthermore, it is lower by 8.1 percentage points compared to 8.3 percent in January 2023. This is the lowest inflation rate since the -0.5 percent recorded inflation rate in October 2019. Inflation is the rate of increase in prices over a given period of time. (Figure 3)
Purchasing Power of Peso (PPP) remained at PhP0.81 in January 2024
The Purchasing Power of Peso (PPP) shows the real value of peso relative to the base period. The PPP in Misamis Occidental in January 2024 maintained its previous month’s value at PhP0.81. Moreover, it is also the same as the recorded PPP in January 2023. 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 January 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
Table 1. Consumer Price Index for All Commodity Groups, Misamis Occidental:
November and December 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:
- 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.
- 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.
- Weighing System – The weighing pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.
- 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.
- 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.
