BARMM Consumer Price Index (Formerly ARMM) as of July 2019
Consumer Price Index
The Consumer Price Index (CPI) is an indicator of the changes in the average retail prices of fixed basket of goods and services commonly purchased by households relative to a base year. BARMM recorded a CPI of 127.1 in July 2019. The region’s CPI is the highest in the entire country during this period.
Figure 2 shows that commodity groups of Alcoholic Beverages and Tobacco, Food and Non-Alcoholic Beverages, and Restaurant and Miscellaneous Goods and Services have the highest corresponding CPIs of 163.5, 133.8 and 125.3 in July 2019. On the other hand, Communication, Transport, and Housing, Water, Electricity, Gas, and Other Fuels have the lowest CPIs of 103.3, 104.9, and 112.0, respectively.
The Province of Sulu recorded the highest CPI in the region in July 2019 at 133.3, as shown in Figure 3. This was followed by Basilan and Lanao del Sur with CPIs of 130.7 and 125.9, respectively. Figure 3 also shows that Tawi-Tawi, Cotabato City, and Lanao del Sur have the lowest corresponding CPIs of 124.7, 124.8 and 124.9.
Figure 4 shows that the inflation rate of BARMM decelerated to 2.1 percent in July 2019 from the 7.5 percent inflation rate in July 2018. This implies that the average retail prices of goods and services in the market basket in BARMM increased by 2.1 percent in July 2019 compared to the prices in July 2018.
Commodity groups of Alcoholic Beverages and Tobacco, Restaurant and Miscellaneous Goods and Services, and Transport have the highest inflation rates in July 2019 recorded at 10.0 percent, 8.3 percent, and 5.1 percent, respectively. On the other hand, commodity groups of Communication, Food and Non-Alcoholic Beverages and Furnishing, Household Equipment, and Routine Maintenance of the House have the lowest corresponding inflation rates of 0.1 percent, 1.7 percent, and 2.7 percent; while the average prices in Education decreased by 4.2 percent in July 2019 (see Figure 5).
It is shown in Figure 6 that Basilan has the highest inflation rate of 7.8 percent in July 2019. This is followed by Tawi-Tawi and Sulu with 7.7 percent and 5.2 percent, respectively. On the other hand, Lanao del Sur and Cotabato City recorded the lowest corresponding inflation rates of 0.2 percent and 1.5 percent during the reference period; while the average prices of All Items in Maguindanao decreased by 0.8 percent.
Purchasing Power of Peso
Purchasing Power of Peso (PPP) is inversely related to inflation rate. Thus, as the inflation rate increases, PPP declines, as shown in Figure 7. In BARMM, PPP is at 0.79 as of July 2019. This is 1.25 percent lower than the PPP in July 2018. The 0.79 PPP implies that the Php1.00 in 2012, as the base year, values only Php0.78 in July 2019.