Inflation in Occidental Mindoro accelerated to 8.0 percent in December 2022, up from 7.1 percent in November 2022 and 3.9 percent in the same month of the previous year. The increase was largely due to the higher annual increment recorded in three (3) commodity groups. Meanwhile, inflation in MIMAROPA accelerated to 8.9 percent in December 2022, compared to the 2.5 percent rate seen in December 2021. 

Inflation Rate by Commodity Group 

➢ Food and Non-Alcoholic Beverages, 9.4% - (90.8% share to inflation trend) 

➢ Transport, 12.2 - (8.8% share to inflation trend) 

➢ Health, 3.2% - (0.5% share to inflation trend)

• Monthly uptick was higher in the inflation rates of the following commodity groups, when compared with the annual figures from the previous month: 

Lower annual gains were observed in the inflation rates of the following commodity groups when compared with the annual figures from the previous month: 

• Alcoholic Beverages  and Tobacco, 9.5% 
• Housing, Water, Electricity, Gas and Other Fuels,3.9 
• Furnishings, Household Equipment and Routine Household Maintenance, 3.0% 
• Information and Communication, 3.0% 
• Recreation, Sport and Culture, 4.0% 
• Restaurants and Accommodation Services, 15.2% 
• Personal Care, and Miscellaneous Goods and Services, 3.7% 

Meanwhile, the indices of Clothing and Footwear, Education Services, and Financial Services maintained their inflation rates in December 2022, with no significant change compared to the annual figure from the previous Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI). 

Inflation Rate by Food Group Inflation for food index in the province increased to 9.1 in December 2022 from 7.2 last November 2022. In December 2021, it was registered at 1.3 percent.

 The annual indices of commodities with top contributions to the inflation rate of the province are the following:

➢ Vegetables, tubers, plantains, cooking bananas and pulses, 22.5%, (47.7 percent share to inflation trend) 

➢ Rice, 7.1%, (16.9 percent share to inflation trend) 

➢ Fish and other seafood, 6.6%, (14.6 percent share to inflation trend) 

Additionally, Fruits and nuts, Milk, other dairy products, and eggs; Flour, Bread and Other Bakery Products, Pasta Products, And Other Cereals; Sugar, confectionery and desserts; and Ready-made food and other food products n.e.c have an upward trend when compared last month, resulting with the inflation rate of food group to continue its upward trend to 9.1 percent. While Corn; Meat and other parts of slaughtered land animals; and Oils and fats; have downward trends.

Purchasing Power of the Peso (PPP) 

• The purchasing power of the peso in Occidental Mindoro in December 2022 is at Php 0.79 peso. This figure means that a peso in 2018 is only worth 79 centavos in December 2022, while the PPP registered at 0.86 in December 2021. As a result, the amount of goods that can 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 they have an inverse relationship.

What is Consumer Price Index (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 relative to a base year. 

What are the uses of CPI?

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 a monitoring indicator of government economic policy.

How is the CPI computed?

The CPI is computed using the weighted arithmetic mean of price relatives, a variant of the Laspeyres formula with fixed base year period weights. In computing the CPI, the formula is

where:

 Pn = current price

 Po = base period price

 W = PoQo = weights 

Base Period - a reference date or simply a convenient benchmark to which a continuous series of index numbers can be related. The base period is year and the index is taken as equal to 100. The present series uses 2012 as the base year.

 Market Basket - selected sample of the varieties of goods purchased by consumption and services availed by households in the country to represent the composite price behavior of all goods and services purchased by consumers. 

Weighting System - 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 expenditure.

What is Inflation Rate?

Inflation rate is the annual rate of change or the year-on-year change of the CPI expressed in percent. That is,

where: CPI1 - is the CPI in the Previous period 

            CPI2 - is the CPI in the Current period

What is Purchasing Power of Peso(PPP)

The PPP is a measure of the real value of the peso in a give period relative to a chosen reference period. It is computed as the reciprocal of the CPI and multiplying the result by 100. That is,