Inflation Rate by Commodity Group

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

Transport1 1.3% - (53.6% share to inflation trend) Housing, Water, Electricity, Gas and Other Fuels, 15.6% - (24,5% share to inflation trend)

Personal Care, and Miscellaneous Goods and Services, 4.7% - (9.2% share to inflation trend) Clothing and Footwear, 2.8%(5.2% share to inflation trend) Furnishings, Household 

Equipment and routine household maintenance, 3.3% - (4.3% share to inflation trend)

Information and Communication, 3.1% - (3.2% 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:

Food and Non-Alcoholic Beverages, 7.6%

Health, 3.0%

Recreation, Sport and Culture, 4.2%

Meanwhile, the indices of Alcoholic Beverages and Tobacco; Education, Restaurants, and Accommodation; and Financial Services maintained their inflation rates for the month of November 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 7.2 in November 2022 from 6.7 last October 2022. In November 2021, it was registered at 3.6 percent.

The annual indices of commodities with top contributions to the inflation rate of the province are the following:
    Rice, 6.0%,    (66.2 percent share to inflation trend)
    Sugar, confectionery, and desserts, 51.8% (14.9 percent share to inflation trend) 
    Milk, other dairy products, and eggs, 6.2%,    (10.3 percent share to inflation trend)

Additionally, Corn; Flour, Bread and Other Bakery Products, Pasta Products and Other Cereals; and Ready-made food and other food products n.e.c have an upward trend when compared last month. While Meat and other parts of slaughtered land animals; Fish and other seafood; Oils and Fats; Fruits and nuts; and Vegetables, tubers, plantains, cooking bananas and pulses have downward trends, resulting with the inflation rate of food group to continue its upward trend to 7.2 percent.
 

Purchasing Power of the Peso (PPP)
• The purchasing power of the peso in Occidental Mindoro in November 2022 is at Php 0.80 peso. This figure means that a peso in 2018 is only worth 80 centavos in November 2022, while the PPP registered at 0.86 in November 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.
 

Technical Notes

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 fornula with fixed base year period weights. In computing the CPI, the formula is sum

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 pattem 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:
   CPII - is the CPI in the Previous period
   CP12- is the CPI in the Current period

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,