2018 Maguindanao Consumer Price Index

January 25, 2019Special Release Ref No.: 38SR-2019 -009

Maguindanao Consumer Price Index

Survey of Retail Prices of Commodities conducted by the Philippine Statistics Authority (PSA) has generated a Consumer Price Index (CPI) of 125.4 for Maguindanao by the end of 2018, using 2012 as the base year. This implies that the cost of a basket of goods and services commonly purchased by a typical Filipino household in the different municipalities of Maguindanao was Php 125.4 by the end of 2018. This is 6.6 percent higher than 2017 with CPI = 117.6.

Figure 1. Consumer Price Index for All Income Households in Maguindanao, by Commodity Group: as of 2018 (2012 = 100)

 

Source of Basic Data: Philippine Statistics Authority, Survey of Retail Prices of Commodities for the Generation of CPI

Commodities under the groups of Alcoholic Beverages and Tobacco, Food and Non-Alcoholic Beverages, and Restaurant and Miscellaneous Goods and Services had the highest CPIs, which were 177.7, 132.9 and 126.2 respectively, by the end of the year 2018. These three commodity groups have CPIs higher than the total average CPI of all items in the province.

On the other hand, Education with CPI = 87.8 have the lowest CPI during the same period.

 

Inflation Rate

The average headline inflation rate in Maguindanao is at 6.6 percent by the end of the year 2018 (2012=100). This implies that the prices of commodities and prices in the region on the average increased by 6.6 percent compared to the same period in the previous year.

 

Table 1. Inflation Rate in Maguindanao: by Month, 2017 - 2018 (2012 = 100)

Month 2017 2018
January 3.5 3.4
February 3.7 4.6
March 3.5 4.8
April 2.9 5.4
May 2.4 5.6
June 2.5 8.0
July 2.5 9.1
August 2.5 10.7
September 3.0 9.3
October 3.0 7.5
November 3.5 5.6
December 2.9 5.6
Average 3.0 6.6

 

In 2018, the months from June to October had the most volatile annual prices with inflation rates ranging from 7.5 percent to 10.7 percent. These months have inflation rates higher than the total average inflation rate of all items in the province. August is the month with the highest inflation rate, estimated at 10.7 percent. On the other hand, January of the same year had the lowest inflation rate at 3.4.

 

Figure 2. Year-on-Year Headline Inflation Rate in Maguindanao: by Month, 2018 (2012 = 100)

Source of Basic Data: Philippine Statistics Authority, Survey of Retail Prices of Commodities for the Generation of CPI

 

Purchasing Power of Peso

Purchasing Power of Peso (PPP) is inversely related to inflation rate. Thus, as the inflation rate increases, PPP declines. In Maguindanao, PPP decreased by 5.9 percent in 2018 and has been decreasing at an average rate of 0.40 percent monthly in the year 2018.

The PPP in 2018 as a whole is at 0.80. This implies that the Php1.0 in 2012, as the base year, values only Php 0.80 in 2018. 

 

Figure 3. Purchasing Power of Peso in Maguindanao: by Month, 2018 (2012 = 100)

Source of Basic Data: Philippine Statistics Authority, Survey of Retail Prices of Commodities for the Generation of CPI

 

 

 

Technical Notes

 

Consumer Price Index (CPI)

The CPI is an indicator of the changes in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

 

Uses of CPI

The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso. It is a major statistical series used for economic analysis and as a monitoring indicator of government economic policy.

 

Computation of CPI

The computation of the CPI involves consideration of the following important points:

a. Base Period

The reference date or base period is the benchmark or reference date or period at which the index is taken as equal to 100.

b. Market Basket

A sample of the thousands of varieties of goods purchased for consumption and services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers.

c. Weighting System

The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.

d. Formula

The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2006) weights.

e. Geographic Coverage

CPI values are computed at the national, regional, and provincial levels, and for selected cities.

 

Inflation Rate is the rate of change of the CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of peso.

Headline Inflation refers to the rate of change in the CPI, a measure of the average standard “basket” of goods and services consumed by a typical family.

 

Purchasing Power of Peso shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.

 

 

 

 

ENGR. AKAN G. TULA, MPA

(Supervising Statistical Specialist)

Officer-in-Charge