Maguindanao Consumer Price Index (as of February 2020)
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 124.5 for Maguindanao as of February 2020, 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 at an average price of Php 124.5 as of February 2020. This is 0.1 percent higher than that of January.
|Commodity Group||February 2020||February 2019||January 2020||January 2019|
|Food and Non-Alcoholic Beverages||128.1||130.0||127.7||130.9|
|Alcoholic Beverages and Tobacco||233.7||194.5||227.4||193.0|
|Clothing and Footwear||129.4||120.5||128.7||119.8|
|Housing, Water, Electricity, Gas, and Other Fuels||105.1||106.7||106.0||106.4|
|Furnishing, Household Equipment and Routine Maintenance of the House||133.1||126.9||132.7||126.6|
|Recreation and Culture||118.0||117.9||118.1||117.5|
|Restaurant and Miscellaneous Goods and Services||138.3||136.1||138.4||136.0|
Commodities under the groups of Alcoholic Beverages and Tobacco, Restaurant and Miscellaneous Goods and Services, Furnishing, Household Equipment and Routine Maintenance of the House, Clothing and Footwear and Food and Non-Alcoholic Beverages had the highest corresponding CPIs of 233.7, 138.3, 133.1, 129.4 and 128.1 in February 2020, respectively. These five commodity groups have CPIs higher than the total average CPI of all items in the province.
On the other hand, Education with CPI = 61.8 still have the lowest CPI during the same period and have been observed for eight straight months.
The average headline inflation rate in Maguindanao is at (0.2) percent as of February 2020 (2012=100). This implies that the prices of commodities and prices in the province on the average decreased by 0.2 percent compared to the same period in the previous year.
Commodity groups under Alcoholic Beverages and Tobacco, Clothing and Footwear, Furnishing, Household Equipment and Routine Maintenance of the House, Health, Transport, Education, Restaurant and Miscellaneous Goods and Services, Recreation and Culture and Communication have shown the most volatile annual prices in February 2020 with the inflation rates of 20.2 percent, 7.4 percent, 4.9 percent, 2.4 percent, 1.8 percent, 1.6 percent, 1.6 percent, 0.1 percent and 0.0 percent respectively. These nine commodity groups have inflation rates higher than the total average inflation rate of all items in the province.
|Commodity Group||February 2020||January 2020|
|Food and Non-Alcoholic Beverages||-1.5||-2.4|
|Alcoholic Beverages and Tobacco||20.2||17.8|
|Clothing and Footwear||7.4||7.4|
|Housing, Water, Electricity, Gas, and Other Fuels||-1.5||-0.4|
|Furnishing, Household Equipment and Routine Maintenance of the House||4.9||4.8|
|Recreation and Culture||0.1||0.5|
|Restaurant and Miscellaneous Goods and Services||1.6||1.8|
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, monthly PPP in February 2020 is equal compared to that of the year 2019.
The PPP in February 2020 was estimated at 0.80. This implies that the Php 1.00 in 2012, as the base year, values only Php 0.80 in February 2020.
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.
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.
(SGD) ENGR. AKAN G. TULA, MPA
(Supervising Statistical Specialist)