Consumer Price Index
The Consumer Price Index (CPI) of the Ilocos Region in July 2022 was posted at 115.6. This means that one needs Php115.60 to purchase the same set of goods and services that were worth Php100.00 in 2018.
The region’s CPI in July 2022 increased by 6.3 percent from 3.9 percent in July 2021. (see Table 2)
Among the provinces, Ilocos Sur posted the highest price index in July 2022 at 119.8. Ilocos Norte followed at 117.5 and Pangasinan at 115.8. Meanwhile, La Union recorded the lowest price index of 110.7 during the period.
Compared to the July 2021 levels, all provinces marked increases in the price index. Ilocos Norte recorded the highest increase of 9.0 percentage points followed by Ilocos Sur with 8.5 percentage points. Pangasinan and La Union have increased by 6.6 and 4.6 percentage points, respectively.
By Commodity Group
The top three commodity groups that recorded high price indices in July 2022 were: financial services (146.0); alcoholic beverages and tobacco (144.7); and transport (132.3). On the other hand, the bottom three commodity groups with low price indices were: information and communication (101.0); recreation, sport and culture (108.0); and furnishings, household equipment and routine maintenance of the house (108.7).
As shown in Figure 3, the inflation rate of the Ilocos Region dropped from 6.5 percent in June 2022 to 6.3 percent in July 2022, a decrease of 0.2 percentage point. However, it is higher by 2.4 percentage points from the recorded rate of 3.9 percent in July 2021. The average inflation from year-to-date stood at 5.0 percent.
The increase in the region’s inflation was mainly brought about by the higher annual increase in the indices for transport at 20.3 percent; housing, water, electricity, gas, and other fuels, 7.1 percent; and food and non-alcoholic beverages, 6.2 percent. 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. Furnishings, household equipment and routine household maintenance, 3.9 percent;
b. Personal care and miscellaneous goods and services, 3.5 percent;
c. Recreation, sport and culture, 3.2 percent; and
d. Clothing and footwear, 3.1 percent.
The rest of the commodity groups either registered lower growth rates or had zero percent annual growths. (see Table 2)
Among the provinces, Ilocos Norte posted the highest inflation rate at 8.3 percent in July 2022, followed by Ilocos Sur and Pangasinan at 7.6 percent and 6.0 percent, respectively. The lowest inflation rate was registered by La Union at 4.3 percent.
Compared to their respective levels in July 2021, all the provinces have increased inflation rates. Ilocos Norte and Ilocos Sur have increased by 5.2 percentage points, and 2.4 percentage points, respectively, while Pangasinan has 1.8 percentage points increase. Moreover, La Union’s inflation rate went up by 1.2 percentage points.
Purchasing Power of Peso
The Purchasing Power of the Peso (PPP) in the Ilocos Region in July 2022 was posted at Php0.87. This means that the purchasing capability of Php1.00 in 2018 has decreased by 13 centavos.
Among the provinces, La Union posted the highest PPP in July 2022 with Php0.90. It was followed by Pangasinan and Ilocos Norte with Php0.86 and Php0.85 PPPs, respectively. Meanwhile, Ilocos Sur recorded the lowest PPP of Php0.83.
It can be gleaned in Figure 5 that PPPs in all the provinces in July 2022 were lower than their respective levels in July 2021. Ilocos Norte and Ilocos Sur both recorded the highest decrease of Php0.07. Moreover, Pangasinan and La Union decreased by Php0.06 and Php0.04, respectively.
SGD. ATTY. SHEILA O. DE GUZMAN
Regional Director, RSSO I