This report presents the Inflation Rate (IR), Consumer Price Index (CPI), and Purchasing Power of Peso (PPP) for all income households in the province of Cavite during the month of July 2022.
Inflation Rate (IR) is the annual rate of change or the year-on-year change of the CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of money.
The headline inflation in the Province of Cavite for the month of July 2022 was measured at 5.5 percent, higher by 0.4 percent than its previous month record of 5.1 percent and 2.6 percent higher than 2.9 percent inflation rate last July 2021.
Relative to the inflation last June 2022, seven (7) commodity groups in the province exhibited higher inflation raes for the month of May 2022, four (4) showed negative inflation and two (2) commodity groups sustained their inflation rate.
The increase in the province’s inflation was mainly brought about by the higher annual increase in the index for Food and Non – alcoholic Beverages at 6.0 percent. Similarly, contributing to the uptrend in the overall inflation during the period were the higher annual increments in the indices of the following commodity groups as compared with their previous month’s inflation rates:
· Alcoholic Beverages and Tobacco, 9.0 percent
· Clothing and Footwear, 2.4 percent
· Furnishing, Household Equipment and Routine Household Maintenance, 3.0 percent
· Transport, 14.1 percent
· Recreation, Sports and Culture, 1.3 percent
· Restaurant and Accommodation Services, 2.0 percent
Meanwhile, the four (4) commodity groups that showed a negative inflation rate compared to last month’s inflation includes:
· Housing, Water, Electricity, Gas and Other Fuels, 5.0 percent
· Health, 3.3 percent
· Information and Communication, 0.2 percent
· Personal Care, and Miscellaneous Goods and Services, 2.4 percent
Education Services and Financial Services both at 0.0 percent were stable this month.
Consumer Price Index (CPI) is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.
The CPI in the Province of Cavite for the month of July 2022 was measured at 116.2 index point, higher by 0.7 index point compared to June 2022 CPI recorded of 115.5 index point. This means that for a typical Caviteño household needed an additional of Php16.20 to afford same goods and services purchased or availed at PhP100.00 in May 2018.
CPI for all commodity groups for the month of July 2022 compared to June 2022 and July 2021 was shown in Table 2.
Purchasing Power of the Peso (PPP) shows how much the peso in the base period is worth in the current period. It gives an indication of the real value of the peso in a given period relative to the peso value in the base period. Purchasing Power of Peso is inversely related to inflation rate. Thus, as inflation rate increases, PPP decrease.
The province purchasing power of the peso (PPP) or real value of the peso for the month of July 2022 was 0.86 centavos, lowest for the year 2022. This means that the value of Php1.00 in 2018 only worth Php0.86 centavos for the month of July 2022.
The highest purchasing power of peso for the period of June 2021 to June 2022 was 0.91 centavos, observed on July 2021 while the lowest was recorded in July 2022 at 0.86 centavos.