Summary Inflation Report Consumer Price Index (2018=100) June 2022

Reference Number: 

2022-06

Date Released: 

07 July 2022, 9:00 AM

                   

 

Date of Release: 07 July 2022, 9:00 AM

Reference No. 2022-06

 

 

                            Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index

    Philippine Statistics Authority

 

Headline Inflation

The headline inflation in the Surigao del Sur increased further to 5.9 percent in June 2022, from 5.0 percent in May 2022.  This is the highest recorded inflation since January 2019.  Inflation in June 2021 was lower at 3.2 percent.  The average inflation for the first six months of the year stood at 4.8 percent.  (Table A and Figure 1)

For comparison, the provincial headline inflation is lower than the regional headline inflation in June at 6.5 percent and close to the national headline inflation for the same month at 6.1 percent.

The increase in the province inflation was mainly brought about by the higher annual increase in the index of the five commodity groups namely, housing, water, electricity, gas, and other fuels at 11.5 percent; transport, 11.0 percent; alcoholic beverages and tobacco at 10.0 percent; food and non-alcoholic beverages at 4.9 percent and restaurant and accommodation services at 1.9 percent.

Food index

For food index, it increased further by 5.4 percent in June 2022, from 4.0 percent in the previous month.   In June 2021, food index was lower by 2.4 percent. (Table 6_7)

The annual growth rate of the Sugar, confectionery and desserts index went up to 18.6 percent during the month, from 14.9 in the previous month. In addition, the following food groups exhibited higher annual increments during the month:

  1. Vegetables, tubers, plantains, cooking bananas and pulses, 17.6 percent;

  2. Oils and Fats, 13.2 percent;

  3. Fish and other seafood, 11.0 percent;

  4. Meat and other parts of slaughtered land animals, 9.4 percent.

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.

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

a. Base Period – The reference data 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. Weighing System – The weighing 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 (2018) weights.

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

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

Purchasing Power of Peso (PPP) – 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.

 

Approved for released:

 

(Sgd.) RUEL L . DRES

Chief Statistical Specialist

 

 

                         

 

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