PSA-BARMM conducts 2nd Level Training on Various Systems for the Generation of CPI
Philippine Statistics Authority in BARMM (PSA-BARMM) conducted the 2nd Level Training on Various Systems for the Generation of Monthly Consumer Price Index (CPI) last 18 to 20 September 2019 at PSA-BARMM Regional Office, Cotabato City. A total of 13 participants composed of Provincial Statistics Officers, together with Regional and Provincial Focal Persons (R/PFPs), attended this training.
The said training was facilitated by Nurosalam C. Caludtiag, Assistant Statistician of PSA-BARMM, the alternate RFP of CPI, and supervised by Naldo G. Pendaliday, Senior Statistical Specialist, the RFP of CPI. Jose Alvin P. Almedilla, Senior Statistical Specialist of Sectoral Statistics Office - Economic Sector Statistics Service – Price Statistics Division (SSO-ESSS-PSD) also attended the training as one of the resource persons and representative from PSA Central Office.
The Consumer Price Index (CPI) is a “statistical measure of the changes in average retail prices of commodities bought by a specific group of consumers in a given area during a given period of time”. This index is prepared by the former National Statistics Office (NSO) (now part of the PSA) for each commodity group on monthly and regional bases to closely monitor price. The first index was constructed in 1945, specifically in Manila, and was called the Cost of Living Index. Over the years, there were efforts to improve the procedures for constructing the index with the end in view of capturing consumer behavior more realistically.
CPI is important because of its usefulness in economic analysis – as an indicator of economic performance/stability along with other macroeconomic variables. This guides business and labor in formulating economic decisions. It is also viewed as an indicator of the effectiveness of government economic policies and as guide in making sound forecasts. The CPI is a widely used measure of inflation. As such, it provides detailed information on price movements. In addition, CPI is commonly used as an indicator in studying changes in the levels of living over time. It is also used to deflate incomes to determine real monetary increments and losses. A related concept is the use of the CPI as deflator of the value of the peso to find its real purchasing power. As inflation erodes the purchasing power of the peso, the CPI, among others, is used to estimate minimum wages and/or periodically adjust wages and other income payments like social security.
PSA provincial offices compute the provincial CPI. These preliminary figures are submitted to the PSA Central Office for review. The central office generates the final CPI figures for national, regional and provincial levels. The results are usually available within one week after the reference month.
The use of android device in the recording and processing of data for the generation was implemented beginning October 2015 by the former NSO now PSA. This project was in collaboration with Statistical Research and Training Center now the Philippine Statistical Research and Training Institute (PSRTI). The two agencies created various teams to conceptualize the implementation of the use of mobile device for CPI. The systems developers from the former NSO were capacitated on the development of the system using android device. The systems that was developed were Price Tag System, CPI Data Processing System (CPI DPS) and CPI Store Merger System. Three batches of trainings in September and October 2015 were conducted nationwide in all field offices to capacitate all users on these three systems. During the first implementation, the use of both paper and pen interviewing (PAPI) and computer assisted personal interviewing (CAPI) methods used. The two methods were done to make sure that the price data were available for the generation of CPI should there be problems encountered during its first implementation. The full implementation of the use of CAPI in all field offices took effect in January 2016.
The works for the development of new systems on CAPI and CPI started in 2017. Two workshops were undertaken by the group on 18 to 22 March 2019 and 8 to 12 July 2019 to finalize the systems. In July 2019, the first version of the four applications was finalized for the purposes of the generation of the CPI. These are the CPI Store Management Application, CPI CAPI Management Application, Price Tag, and CPI Data Processing System.
- Inflation is the rate of change of overall in CPI.
- Purchasing Power measures the change in the quantity of goods and services that can be bought by a peso at various points in time i.e. as prices increase, the purchasing power of peso weakens.
- Price Tag system for the recording and processing of prices using the android tablets/mobile devices.
- CPI DPS the system for validating prices and generating CPI.
- CPI Store Merger System is a system used for the cleaning and merging of the lists of sample stores.
- CPI Store Management Application system for the updating/cleaning the list of stores/outlets to be used in price collection.
- CPI CAPI Management Application the system for the registration of android tablets/mobile devices and price collectors, and for downloading of price data.