Special Release on Summary Inflation Report of Olongapo City Consumer Price Index (2018=100), July 2022

Reference Number: 

2022-014

Release Date: 

Monday, August 8, 2022

 

Annual headline inflation in the City of Olongapo continued its uptrend as it moved up further to 6.2 percent in July 2022, from 5.0 percent in June 2022.  This is the highest recorded inflation in the city since 2019.  With this month’s inflation, the average inflation in Olongapo City from January to July 2022 stood at 3.8 percent.  In July 2021, inflation rate was lower at 4.3 percent.  (Table A and Figure 1)

The main source of the upward trend of the July 2022 inflation was the higher annual growth rate in the index for food and non-alcoholic beverages at 6.9 percent, from 4.9 percent in the previous month.  Transport index followed with 25.5 percent annual growth, from 16.0 percent in June 2022.  Also contributing to the uptrend in the overall inflation during the period were the higher annual increments in the indices of the following commodity groups:

a. Alcoholic Beverages and Tobacco, 10.2 percent;
b. Clothing and footwear, 3.3 percent;
c. Furnishings, household equipment, and routine household maintenance, 2.1  percent;
d. Health, 2.6 percent;
e. Information and communication, 2.8 percent; and
f. Recreation, sport and culture, 1.5 percent.

 

 

On the other hand, the annual mark-up in the indices of housing, water, electricity, gas an dother fuels; and personal care, and miscellaneous goods and services decreased to 6.3 percent and 1.3 percent, respectively.  Moreover, the indices  of education services; restaurants and accommodation services; and financial services all maintained their inflation rates from their previous month’s rates. (Table B)

Food inflation increased further to 7.3 percent in July 2022, from 5.1 percent in June 2022.  Food inflation was lower in July 2021 at 4.0 percent. (Table C)

By food group, the increase in the inflation for meat and other parts of slaughtered land animals at 11.2 percent; fish and other seafood at 12.8 percent; and milk, other dairy products and eggs at 7.8 percent contributed largely to the acceleration in the food inflation during the month.

Vegetables, tubers, plantains, cooking bananas and pulses registered lower inflation of -0.4 percent. The rest of the food groups exhibited faster annual growth rates of their indices.  (Table C)

 

 

 

Purchasing Power of Peso recorded at Php0.84 in July 2022
Purchasing Power of Peso (PPP) continue to weaken through the years and reached Php0.84 in July 2022. The PPP of 0.84 implies that the Php1.00 in 2018, as the base year, values only Php0.84 in July 2022.

 

TECHNICAL NOTES

Consumer Price Index (CPI)
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. Prices are compared to a base year and weighted by the appropriate consumption pattern. The present series uses 2012 as the base year.

Components of the CPI

Base Year/Base period
A reference date at which the index is equal to 100. The base year is 2018.

Market Basket
A sample of the variety of goods and services commonly consumed by an average Filipino household to represent the price behavior of all goods and services brought by consumers.

Weight
A value attached to the commodity or group of commodities depending on the magnitude of its distribution to the index.

Sample Outlets
Establishments where prices of commodities are quoted.

Prices of Items in Market Basket
Baseline information for prices of the items in the base year is established and monitoring the prices of items is done on a regular basis.

Inflation Rate
The annual rate of change or the year-on-year changes in the average retail prices expressed in percent.

Purchasing Power of the Peso (PPP)
The measure of how much the peso in the base period is worth in the current period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100.

 

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