SPECIAL RELEASE ON PAMPANGA INFLATION RATE AS OF MAY 2022

Reference Number: 

2022-004

Release Date: 

Wednesday, June 8, 2022

Pampanga recorded 6.2 Inflation Rate as
of May 2022

 

INFLATION RATE

Pampanga rate (IR) of 6.2 percent inflation in May 2022. This was 0.3 percentage point higher compared to the inflation rate (IR) a month ago and a 1.3 percentage point higher compare in the same period last year which was registered at 4.9 percent. This high increase is due to the effect of high prices of Food Items and oil fuels this year.

 

PURCHASING POWER OF PESO

The Purchasing Power of Peso (PPP) in Pampanga for the month of May2022 is 0.86. It was lowered compared to 0.91 in May 2021. From May 2021 to June 2021 PPP is equal to 0.91 and decreased to 0.89 from August 2021 to October 2021. PPP implies that 100 pesos in 2018 (base year) is now worth only 88 pesos in December 2021. But on January to March 2022 PPP decreased to 0.87 and lowered down on April and May to 0.86, but it implies that 100 pesos in 2018 (base year) is now worth only 86 pesos in May 2022.

CONSUMER PRICE INDEX:

Among commodity groups, price index for Transportation shows an increased from 124.3 in April 2022 to 125.6 in May 2022 followed by Health which shows an increased from 116.9 in April 2022 to 117.7 in May 2022. Some commodity group price index only shows a slight increase like Food and Non-Alcoholic Beverages, Furnishing, Household Equipment and Routine Household Maintenance, Clothing and Footwear and Alcoholic Beverages and Tobacco.

On the other hand, other commodity group price index like Information and Communication, Education Services, Restaurants and Accommodation Services, Financial Services, Personal Care, and Miscellaneous Goods and Services retained its previous month rate. For All Items price index, it only show a 0.4 increase compared last month.

 

CONCEPTS AND DEFINITIONS

Base Year - it identifies the base period with which the index relates. It is a period of time chosen as reference on which a price index is computed. The index for the base year is 100.

Consumer Price Index - a statistical measure of the change in average retail prices of a fixed basket of goods and services bought by a specific group of consumers in a given area in a given period of time.

Inflation Rate - the annual rate of change or the year-on-year change of the CPI. Inflation is interpreted in terms of declining purchasing power of money.

Market Basket - the total number of goods and services in constant amounts and qualities which are samples of the goods and services available in the market and included in the construction of the index. CPI market basket was selected to represent the composite price behavior of all goods and services purchased by consumers.

Percent Change - the percent point change expressed as percent of the index of the earliest date.

Purchasing Power of Peso (PPP) - a measure of the volume of goods and services which the currency can buy at any given period relative to that which it could
purchase during the base year. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.

 

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