October 2022 Inflation Report of Oriental Mindoro (Base Year: 2018)

Date: 

Wednesday, November 9, 2022

Reference Number: 

2022-029

SPECIAL RELEASE

OCTOBER 2022 INFLATION REPORT OF ORIENTAL MINDORO
(BASE YEAR: 2018)

 

Table 1. Year-on-Year Inflation Rates (%) in the Philippines, MIMAROPA Region,
and Oriental Mindoro Province
(2018=100)

Area

Oct 2021

Sep 2022

Oct 2022

Philippines

4.0

6.9

7.7

MIMAROPA Region

3.2

7.6

8.5

Oriental Mindoro

3.6

7.8

9.2

 
The headline inflation rate in Oriental Mindoro continued to uptrend as it moved further to 9.2 percent in October 2022, from 7.8 percent in September 2022. In October 2021, inflation rate was observed at 3.6 percent.
 
The continued uptrend of the October 2022 inflation was primarily due to the higher annual growth rate in the index for food and non-alcoholic beverages at 9.3 percent, from 6.3 percent in the previous month. This was followed by housing, water, electricity, gas and other fuels with 11.0 percent annual growth, from 9.9 percent in September 2022.
 
 
Higher annual increments in the indices of the following commodity groups also contributed to the uptrend of inflation in the province in October 2022:
  • Alcoholic Beverages and Tobacco, 10.9%;
  • Clothing and Footwear, 5.2%;
  • Furnishings, Household Equipment and Routine Household Maintenance, 4.3%;
  • Health, 1.1%;
  • Recreation, Sports and Culture, 0.9%;
  • Restaurants and Accommodation Services, 12.9%; and
  • Personal Care, and Miscellaneous Goods and Services, 7.5%.
On the other hand, slower annual increment was observed in the index of transport at 12.2 percent.

Meanwhile, information and communication (0.6%), education services (1.8%) and financial services (0.0%) maintained their previous month’s inflation rates.

 
 
INFLATION RATE BY FOOD GROUP
 
 
Inflation for food in Oriental Mindoro increased further to 9.7 percent in October 2022, from 6.5 percent in September 2022. In October 2021, food inflation was lower at 2.4 percent.

The increased inflation for rice at 10.1 percent; fish and other seafood at 13.1 percent; and meat and other parts of slaughtered land animals at 7.3 percent primarily influenced the higher food inflation in the province in October 2022.

Faster annual growth rates were also observed in the following food groups:

  • Corn, 22.7%;
  • Milk, Other Dairy Products and Eggs, 3.6%;
  • Oils and Fats, 19.4%
  • Fruits and Nuts, 1.7%;
  • Vegetables, Tubers, Plantains, Cooking Bananas and Pulses, 8.0%;
  • Sugar, Confectionery, and Desserts, 37.1%; and
  • Ready-made Food and Other Food Products, n.e.c., 9.1%.
Moreover,  flour, bread, and other bakery products, pasta products, and other cereals retained its previous month’s rate at 6.1 percent.
 
 
PURCHASING POWER OF PESO
 
The Purchasing Power of Peso (PPP) in Oriental Mindoro is at PhP 0.79 in October 2022. The PPP was registered at PhP 0.86 in October 2021. As a result, the amount of goods that could be presently purchased by consumers were fewer compared to when the PPP was higher. Furthermore, the decrease in PPP was attributed to the higher inflation rate, given that PPP and inflation rate have an inverse relationship.
 
 
 
(Sgd.) EFREN C. ARMONIA
Chief Statistical Specialist
Oriental Mindoro Provincial Statistical Office

DMDM

 
 
 
 
 
 
Technical Notes
 
  • Consumer Price Index is an indicator of the change in the average prices of a fixed basket of goods and services commonly purchased by households relative to a base year
  • Market Basket is a sample of goods and services, which is meant to represent the totality of all the goods and services purchased by households relative to a base year.
    • To determine the commodities that will form the market basket for the 2018-based CPI, the Survey of Key Informants (SKI) was conducted in March 2021. The survey, which was conducted nationwide to store managers, sellers or proprietors, obtained information on the most commonly purchased of goods and availed of services by the households.
    • The commodities in the 2018-based CPI market basket are grouped/classified according to the 2020 Philippine Classification of Individual Consumption According to Purpose (PCOICOP) which is based on the United Nations COICOP. Meanwhile, the commodities in the 2012-based CPI market basket used the 2009 PCOICOP version of classification of commodities.
  • Base year is a reference period, usually a year, at which the index number is set to 100. It is the reference point of the index number series. The CPI is rebased from base year 2012 to base year 2018.
  • Inflation Rate is the annual rate of change or the year-on-year change in the Consumer Price Index (CPI).
  • Purchasing Power of Peso is a measure of the real value of the peso in a given period relative to a chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100

Inflation Rate (reference month, reference year)

= [(CPI (reference month, reference year) - CPI (reference month, previous year)) / CPI (reference month, previous year)] x 100%

For example,
INFLATION RATE (October 2022) = [(CPI(October 2022) - CPI(October 2021)) / CPI(October 2021)] x 100%
                             = [(126.5 – 115.8) / 115.8] x 100%
                             = (10.7 / 115.8) x 100%
                             ≈ 9.2%

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