HIGHLIGHTS OF THE CONSUMER PRICE INDEX IN CITY OF ILIGAN FOR THE MONTH OF MAY 2022 (2018=100)
Reference Number: PSALDN-SR-2022-05-003
Release Date:

Iligan City’s Consumer Price Index posted at 115.1 for the month of May which implies that the price of one basket of goods was 15.1 higher than the price of goods in 2018.

Consumer Price Index (CPI) is used as an indicator to measure the changes in the average retail prices of one basket of goods and services over time that consumers commonly pay. Figure 1 shows the Consumer Price Index in the city of Iligan for the period of May 2021 and 2022 with 2018 as the base year.

Figure 1

Among the commodity groups, Financial Services registered the highest CPI in May 2022 at 145.9 followed by Alcoholic Beverages and Tobacco at 132.1 and Housing, Water, Electricity, Gas, and Other Fuels at 121.6.

In the other hand, Information and Communication at 102.9, Education Services at 105.9 and Clothing and Footwear at 107.5 were the bottom three with the lowest CPI posted in the month of May 2022 as shown in figure 2.

Figure 2

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index, Philippine Statistics Authority

INFLATION RATE

The inflation rate refers to the percent change in the average prices of goods and services, in most cases, purchased by consumers compared to prices a year ago. Figure 3 below displays the inflation rate for all items in the city from May 2021 to May 2022.

The inflation rate of the City of Iligan is 5.2 percent, which is higher than its average retail price in May 2021.

Inflation occurs mostly when goods and services are in high demand, giving rise to a drop in availability in the market. This may be caused by any number of reasons, like natural phenomena and/or man-made calamities.

Figure 3

PURCHASING POWER OF PESO (PPP)

The Purchasing Power of Peso (PPP) shows how much the currency of the peso is worth in the current period based on the year 2018.

The PPP in the City of Iligan is at P0.87 for the month of May 2022. This value means that the goods and services that are worth one peso (P1.00) in the year 2018 have a current value of eighty-seven centavos (P0.87).

Figure 4 below shows the year-on-year purchasing power of peso of the City of Iligan from May 2021 and 2022.

Figure 4

The City of Iligan had retained its purchasing power of peso declining at 0.87 centavos for the month of May 2022. This also implies that the consumers in the City had to increase their usual costs in order to attain the same quality of living from year 2018.

Purchasing power has a great impact on different aspects of the economy. A massive decrease in purchasing power caused by excessive inflation may lead to an economic crisis.

OSLER M. MEJARES
Chief Statistical Specialist
PSA Lanao del Norte