Camiguin’s Inflation Rate Continued to Rise at 5.3%
The annual inflation rate of Camiguin continues to rise at a faster rate of 5.3 percent in May 2022 based on the computed price indices at constant 2018 prices. It is higher by 0.7 percentage points compared to the registered rate of 4.6 percent in April 2022. Moreover, comparing it with the posted rate in May 2021, this registered rate is lower by 0.1 percentage points. (See Figure 1)
The annual inflation rate of Camiguin had the highest ranking among the five provinces in the region. The next highest inflation rate was posted by Bukidnon at 5.2 percent in May 2022, higher than the registered rate of 5.0 percent in April 2022. On the other hand, the lowest inflation rate in the region for the month of May 2022 was posted by Lanao del Norte at 2.7 percent, lower than its registered rate of 3.2 percent in April 2022.
The regional annual inflation rate retained its rate of 4.6 percent in April 2022 for the month of May 2022. On the other hand, the national annual inflation rate in May 2022 posted a 0.5 percentage points increase from its registered 4.9 percent rate in April 2022.
Figure 2 presents the annual inflation rates of the provinces in Region X in May 2022.
The heavily weighted food and non-alcoholic beverages accelerated at a faster rate of 5.3 percent in May 2022 from its registered rate of 3.8 percent in April 2022. Faster rate of increases was also posted in the indices of alcoholic beverages and tobacco (5.5%), health (4.4%), recreation, sports and culture (4.2%), education services (18.1%), and personal care and miscellaneous goods and services (3.5%). (See Table 1)
On the other hand, slowdown was registered in the indices of clothing and footwear at 2.8 percent, housing, water, electricity, gas and other fuels at 2.7 percent, furnishings, household equipment and routine maintenance of the house at 2.9 percent, information and communication at 0.0 percent and restaurants and accommodation services at 1.0 percent. Meanwhile, financial services posted no increase in its May 2022 inflation rate.
The regional food index posted an increase of 1.7 percentage points from the 4.1 percent rate registered in April 2022. The increase was primarily supported by increases posted in the indices of fish and other seafood (18.5%), milk, other dairy products and eggs (25.9%), oils and fats (6.5%), fruits and nuts (21.8%), sugar, confectionery and desserts (8.0%), and ready-made foods and other food products not elsewhere classified (4.9%). (See Table 1a, p. A-1)
Meanwhile, slower rate of increases was posted in the indices of flour, bread and other bakery products, pasta products and other cereals (0.8%), and meat and other parts of slaughtered animals (4.3%).
On the other hand, declines were posted in the indices of rice at -3.2 percent and vegetables, tubers, cooking bananas and pulses at -3.0 percent.
FRANCISCO C. GALAGAR JR.
Chief Statistical Specialist
PSA Camiguin
PSA Camiguin
Technical Notes
This Special Release presents the results of the Survey of Retail Prices of Commodities and Services for the Generation of Consumer Price Index (CPI) conducted in May 2022.
CPI
The CPI is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households for their day-to-day consumption relative to a base year.
Uses of the CPI
As an indicator, the CPI is most widely used in the calculation of the inflation rate and purchasing power of the peso. It is a major statistical series used for economic analysis and as monitoring indicator of government economic policy.
The CPI is also used as a deflator to express value series in real terms, which is, measuring the change in actual volume of transaction by removing the effects of price changes. Another major importance of the CPI is its use as basis to adjust wages in labor management contracts as well as pensions and retirement benefits. The CPI also serves as inputs in wage adjustments through the collective bargaining agreements.
Components of the CPI
a. Base Period
This is a reference date or simply a convenient benchmark to which a continuous series of index numbers can be related. Since the CPI measures the average changes in the retail prices of a fixed basket of goods, it is necessary to compare the movement in previous years back to a reference date at which the index is taken as equal to 100.
The present series uses the 2012 as the base year. The year 2012 was chosen as the base year because it is the year when the Family Income and Expenditure Survey (FIES) was conducted. The FIES is the basis of the CPI weights.
b. Market Basket
Market basket refers to a sample of thousands of varieties of goods purchased for consumption and services availed by the households in the country. It was selected to represent the composite price behaviour of all goods and services purchased by the consumers.
c. Weighting System
The weighting system is a desirable system that considers the relevance of the components of the index. For the CPI, the weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditures.
d. Geographic Coverage
CPI values are computed at the national, regional, and provincial levels, and for selected cities. A separate CPI for NCR is also computed.
e. Classification Standards
The 2012-based CPI series is the first in the series that used the 1999 United Nations Classification of the Individual Consumption According to Purpose (COICOP) in determining the commodity groupings of the items and services included in the market basket. The 2012-based CPI also follows the 2015 Philippine Standard Geographic Classification codes.
Inflation Rate
The inflation rate (IR) is the annual or monthly rate of change of the CPI in percent. It is interpreted in terms of declining purchasing power of money.
