Consumer Price Index (CPI) in Misamis Occidental remained at 126.1
The CPI in Misamis Occidental for the month of May 2024 retained its value at 126.1 from the previous month. A CPI of 126.1 implies that the same basket of goods and services worth 100 pesos in 2018 had increased by 26.1 percent in May 2024. Compared to the CPI recorded in the months of April and May 2023, it increased from 121.9 and 123.0 to 126.1 both in April and May 2024. 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 May 2024 which declined at 189.2 from 189.4 in the previous month, followed by Financial Services which remained at 146.0, and Restaurants and Accommodation Services which increased at 135.4 from 134.8 in the previous month. On the other hand, Information and Communication at 115.8, Recreation, Sport, and Culture at 108.6 and Education Services at 105.1 remained the bottom three commodity groups with the lowest CPI recorded in the month of May 2024. (Figure 2)
May 2024 Inflation Rate (IR) in the province slowed down to 2.5 percent
Provincial inflation in May 2024 decelerated at 2.5 percent from 3.4 percent in the previous month. Furthermore, it is lower by 3.4 percentage points compared to 5.9 percent in May 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 May 2024
The Purchasing Power of Peso (PPP) shows the real value of peso relative to the base period. The PPP in Misamis Occidental in May 2024 retained its value at PhP0.79 since February this year. 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 April 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:
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.
