Inflation in Occidental Mindoro slowed down to 6.6 percent in July 2023 from 7.5 percent in June 2023. This is higher than the inflation rate of 5.3 percent in July 2022. Inflation in MIMAROPA also decelerated, from 7.2 percent in June to 5.7 percent in July 2023. In July 2022, the inflation rate in the region was 7.1 percent.
Inflation Rate by Commodity Group
In July 2023, seven (7) commodity groups recorded lower inflation rates. Recreation, sports, and culture; and restaurants and accommodation services showed higher inflation rates. Education services and financial services remained unchanged in terms of inflation rate compared to June 2023.
Inflation Rate by Food Group
The inflation rate for the food index in the province decelerated to 7.7 percent in July 2023 from 8.8 in June 2023. In July 2022, the inflation rate for the food index in the province was recorded at 4.1 percent.
The annual indices for food commodities with the highest contribution to the downtrend of the food index in July 2023 in the province were Meat and other parts of slaughtered land animals, with a decline of 4.5 percent, Fruits and Nuts showed an decline of negative 19.9 percent, Sugar, confectionery and desserts slowed down at 36.6 percent while Cereal and cereal products had a decline of 10.1 percent and Milk, other dairy products and eggs decelerated to 10.3 percent. These indices indicate slower year-on-year growth rates for the food group.
Additionally, Fish and other seafood accelerated at 3.9 percent, and Vegetables, tubers, plantains, cooking bananas and pulses slowed down to 16.4 percent, while corn remained at 16.1 percent, resulting in the overall inflation for the food group to have an upward trend, with 8.8 percent.
Purchasing Power of the Peso (PPP)
The Purchasing Power of the Peso in Occidental Mindoro in July 2023 remained at Php 0.77. This figure means that a peso in 2018 is only worth 77 centavos in July 2023, while the PPP was registered at 0.82 in July 2022. As a result, the amount of goods that can presently be purchased by consumers is lower compared to when the PPP was higher.
Technical Report
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
sum [(Pn/Po)W]
CPI = sum (W) x 100
where:
Pn = current price
Po = base period priceW = 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 the CPI, the weighting pattern uses the expenditures on various consumer items purchased by households - a desirable system that considers the relevance of the components of the index. For 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 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,
