Inflation rate in Cagayan Valley remained at 2.9 percent in September 2020. In the previous month, inflation in the region was the same at 2.9 percent and in the same period of last year at 0.1 percent. Among the provinces of the region, Batanes posted the highest inflation rate at 5.4 percent in September 2020 despite the only province that decreased from same month last year. This was followed by Nueva Vizcaya at 3.5 percent and Isabela at 3.4 percent. Meanwhile, the lowest inflation rate was observed in Quirino at 1.6 percent.
recreation and culture, -0.1 percent;
- education, 0.9 percent;
- housing, water, electricity, gas and other fuels, 1.3 percent;
- furnishings, household equipment and routine maintenance of the house, 3.0 percent;
- health, 4.0 percent; and
- transport, 20.2 percent.
Meanwhile, alcoholic beverages and tobacco and food and non-alcoholic beverages registered slower annual rates at 0.8 percent and 8.2 percent, respectively. The rest of the commodity groups retained their previous month’s annual growth rates.
Table 1. Consumer Price Index for All Items by Commodity Group and Province, Cagayan Valley: September 2020
The Consumer Price Index (CPI) in the region was recorded at 125.2 in September 2020. This was higher by 3.5 index points from the 121.7 CPI from same period last year. Batanes province posted the highest CPI at 131.3 while Quirino had the lowest CPI at 117.9.
Among the commodity groups, alcoholic beverages and tobacco had the highest CPI with 271.5 index points. The province of Cagayan incurred the highest index on this commodity with 293.2 index points. Education registered the lowest CPI in the region with 96.0 index points with Cagayan having the least CPI at 75.0 index points.
The Purchasing Power of Peso (PPP) in the region maintained its record from June to September 2020 at PhP 0.80. This means that the value of PhP 1.0 in 2012 is only worth PhP 0.80 in September 2020. Compared to its value in 2019, the value of PPP weakened by PhP 0.02 from its PhP 0.82 of same period last year.
During the month, the province of Batanes displayed the weakest PPP at PhP 0.76 while Quirino remains the strongest across provinces at PhP 0.85. Meanwhile, all the provinces in the region except Batanes retained their PPPs for the months of July to September 2020.
Consumer Price Index (CPI) is a general measure of the change in the average retail prices of a market basket or collection of goods and services commonly purchased by the average Filipino household.
Inflation Rate (IR) is the rate of change in the average price level between two periods (year- on year/month-on-month as measured by the CPI).
Purchasing Power of the Peso (PPP) measures how much the peso in the reference year is worth in another year.
Base Year (BY) is the reference point of the index number series, at which the index number is set to 100. It is the reference point of the index number series.
The CPI is now rebased to 2012 base year from the current 2006 base year. The year 2012 was chosen as the next base year because it was the latest year when the Family Income and Expenditure Survey (FIES) results were made available. It is also the synchronized rebasing of the price indices to base year 2006 and every six years thereafter.
Rebasing CPI is necessary to ensure that this barometer of economic phenomena is truly reflective of current situation. Consumer taste, fashion and technology change over time causing the fixed market basket of goods and services to become outmoded. To capture such changes for a more meaningful price comparison, revision or updating of the fixed market basket, sample outlets, weights, and base year had to be done periodically. The CPI is an indicator that derives its usefulness in its representation of how much a typical market basket behaves over a specific period.
Market Basket (MB) is a sample of goods and services used to represent all goods and services produced or bought.