Occidental Mindoro's Inflation continued its uptrend as it moved up further to 7.3. percent in October 2022, from 6.5 percent in September 2022. Inflation in October 2021 was posted at 5.6 percent. The upward trend in the province's inflation was primarily due to the higher annual increment registered in eight (8) commodity groups. Similarly, Inflation in MIMAROPA accelerated to 8.5 percent in October 2022. In October 2021, inflation in the region was lower at 3.2 percent.

Inflation Rate by Commodity Group

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

➤ Food and Non-Alcoholic Beverages, 7.0%                                         - (89.8% share to inflation trend)
➤ Restaurants and Accommodation Services, 15.6%                                - (4.4% share to inflation trend)

➤ Clothing and Footwear, 3.3%                                                                    - (1.8% share to inflation trend)
➤ Furnishings, Household Equipment 
and Routine Household Maintenance, 3.8%
➤ Personal Care, and Miscellaneous Goods
and Services, 5.5%
➤ Alcoholic Beverages and Tobacco, 9.6%
➤ Recreation, Sport and Culture, 4.1% 

➤ Health, 2.9%


• Lower annual gains were observed in the inflation rates of the following commodity groups when compared with the annual figures from the previous month:
➤ Housing, Water, Electricity, Gas and Other Fuels 4.8%
➤ Transport, 13.7%
➤ Information and Communication, 3.7%

• Meanwhile, the indices of Education Services, and Financial Services maintained their inflation rates for the month of October 2022. There was no significant change compared to the annual figure from the previous Retail Price Survey (RPS) of Selected Commodifies and Services for the Generation of Consumer Price Index (CPI):

Inflation Rate by Food Group

Inflation for food index in the province increased to 6.7 in October 2022 from 5.1 last September 2022. In October 2021, it was registered at 5.0 percent.
The annual indices of commodities with top contributions to the inflation rate of the province are the following:
➤ Meat and other parts of slaughtered land animals, 12.4%,         (29.9 percent contribution to inflation) 

➤ Fish and other seafood, 7.8%,                                                         (17.3 percent contribution to inflation)(17.3 percent contribution to inflation)
➤ Sugar, confectionery, and desserts, 46.7%                                    (21.1 percent contribution to inflation)
 

Additionally, Cereals; Vegetables, tubers, plantains, cooking bananas and pulses; and Ready-made Food and Other Food Products have an upward trend when compared last month. While Milk, other dairy products, and eggs; and Fruits and nuts have downward trends, resulting with the inflation rate of food group to continue its upward trend to 7.0 percent.

Purchasing Power of the Peso (PPP)

• The purchasing power of the peso in Occidental Mindoro in October 2022 is at Php 0.81 peso. This figure means that a peso in 2018 is only worth 81 centavos in October 2022, while the PPP registered at 0.86 in October 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

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,

What is Purchasing Power of the 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,