BARMM Consumer Price Index (Formerly ARMM) as of December 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 127.9 in December 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 167.4, 133.5 and 128.2 in December 2019. On the other hand, Communication, Transport, and Housing, Water, Electricity, Gas, and Other Fuels have the lowest CPIs of 102.7, 108.6, and 114.3, respectively.
The Province of Sulu recorded the highest CPI in the region in December 2019 at 136.8, as shown in Figure 3. This was followed by Basilan and Lanao del Sur with CPIs of 131.5 and 125.3, respectively. Figure 3 also shows that Cotabato City, Maguindanao and Tawi-Tawi have the lowest corresponding CPIs of 122.3, 124.8 and 124.9.
Figure 4 shows that the inflation rate of BARMM decelerated to 0.8 percent in December 2019 from the 7.5 percent inflation rate in December 2018. This implies that the average retail prices of goods and services in the market basket in BARMM increased by 0.8 percent in December 2019 compared to the prices in December 2018.
Commodity groups of Transport, Health and Restaurant and Miscellaneous Goods and Services have the highest inflation rates in December 2019 recorded at 6.7 percent, 5.0 percent, and 4.7 percent, respectively. On the other hand, commodity groups of Education, Recreation and Culture and Furnishing, Household Equipment, and Routine Maintenance of the House have the lowest corresponding inflation rates of 1.8 percent, 2.6 percent, and 2.8 percent; while the average prices in Communication and Food and Non-Alcoholic Beverages decreased by 0.8 percent and 1.0 percent in December 2019 (see Figure 5).
It is shown in Figure 6 that Basilan has the highest inflation rate of 3.2 percent in December 2019. This is followed by Tawi-Tawi and Lanao del Sur with 2.3 percent and 1.5 percent, respectively. On the other hand, the average prices of All Items for the provinces of Cotabato City, Maguindanao and Sulu decreased by 0.6 percent, 0.7 percent and 0.7 percent, respectively.
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 0.78 as of December 2019. This is 1.28 percent lower than the PPP in December 2018. The 0.78 PPP implies that the Php1.00 in 2012, as the base year, values only Php0.78 in December 2019.
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.