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 October 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. Headline inflation in the Province of Cavite rocketed to 6.2 percent this October 2022, higher by 0.9 percent compared to last month’s inflation rate of 5.3 percent. With this month’s inflation, the province’s average inflation from January to September 2022 stood at 4.1 percent. In October 2021, inflation rate was posted at 3.7 percent (see Table 1 and Figure 1). The acceleration in the province’s inflation rate in October 2022 was primarily due to the higher annual growth rate in the index for food and non-alcoholic beverages at 9.6 percent, from 6.7 percent last September 2022. This was followed by commodity group “Personal Care, and Miscellaneous Goods and Services” with 3.9 percent annual growth, from 2.4 percent last month. Also contributing to the uptrend in the overall inflation in October 2022 were the higher annual increases in the indices of the following commodity groups: Alcoholic Beverages and Tobacco, 12.9 percent Restaurant and Accommodation Services, 1.4 percent Health, 2.4 percent Furnishing, Household Equipment and Routine Household Maintenance, 4.8 percent Information and Communication, 0.4 percent Clothing and Footwear, 3.7 percent Recreation, Sports and Culture, 5.0 percent On the other hand, two (2) commodity groups showed lower annual increment in the indices compared to last month’s inflation: Transport, 9.7 percent Housing, Water, Electricity, Gas, and Other Fuels, 4.4 percent Meanwhile, Education Services (1.2 percent) and Financial Services (0.0 percent) was 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 October 2022 was measured at 118.1 index point, higher by 1.1 index point compared to September 2022 CPI recorded of 117.0 index point. This means that for a typical Caviteño household needed an additional of Php18.10 to afford same goods and services purchased or availed at PhP100.00 in 2018. CPI for all commodity groups for the month of October 2022 compared to September 2022 and October 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 October 2022 was 0.85 centavos, lowest for the year 2022. This means that the value of Php1.00 in 2018 only worth Php0.85 centavos for the month of October 2022. The highest purchasing power of peso for the period of October 2021 to October 2022 was 0.90 centavos, observed on October 2021 while the lowest was recorded at 0.85 centavos for the months of September and October 2022.
