Consumer Price Index

The Consumer Price Index (CPI) of the Ilocos Region in December 2023 was posted at 122.2. This means that one needs PhP122.20 to purchase the same set of goods and services that were worth PhP100.00 in 2018.

Among the provinces, Pangasinan posted the highest price index in December 2023 at 123.5. Ilocos Sur followed at 123.1, and Ilocos Norte at 121.6. Meanwhile, La Union recorded the lowest price index of 117.4 during the period.

Compared to the December 2022 levels, all provinces marked increases in the price index, except Ilocos Sur. La Union recorded the highest increase of 4.6 percentage points, followed by Pangasinan with 3.3 percentage points, and Ilocos Norte with 1.4 percentage points. Meanwhile, Ilocos Sur’s price index went down by 2.0 percentage points.

By Commodity Group

The top three commodity groups that recorded high price indices in December 2023 were: alcoholic beverages and tobacco (158.7); financial services (146.0); and food and non-alcoholic beverages (129.4). On the other hand, the bottom three commodity groups with low price indices were:    information and communication (101.8); recreation, sport and culture (111.9); and housing, water, electricity, gas and other fuels (114.6).

Inflation Rate

As shown in Figure 3, the inflation rate of the Ilocos Region decreased from 2.9 percent in November 2023 to 2.3 percent in December 2023, lower by 0.6 percentage points. Likewise, it is lower by 5.9 percentage points from the recorded rate of 8.2 percent in December 2022.

The lower inflation in Ilocos Region in December 2023 was primarily influenced by the considerable decrease in the indices of the following commodity groups:

a.    Food and non-alcoholic beverages, 5.5 percent;

b.    Housing, water, electric, gas and other fuels, (5.5) percent;

c.    Furnishings, household equipment and routine household maintenance, 6.4 percent;

d.    Health, 2.0 percent; and

e.    Recreation, sport and culture, 1.3 percent.
 

On the other hand, increase in the indices of the following commodities was observed:

a.    Alcoholic beverages and tobacco, 7.6 percent;

b.    Transport, -1.2 percent; and

c.    Personal care, and miscellaneous goods and services, 4.1 percent.

The rest of the commodity groups retained their previous month’s inflation rates or had zero percent annual growths. (Table 2)

By Province

Among the provinces, La Union posted the highest inflation rate at 4.1 percent in December 2023 followed by Pangasinan at 2.7 percent. Meanwhile, Ilocos Norte recorded 1.2 percent inflation, and Ilocos Sur with -1.6 percent annual growth.
Compared to their respective levels in November 2022, all the provinces recorded lower inflation rate.

Purchasing Power of Peso

The Purchasing Power of the Peso (PPP) in the Ilocos Region in December 2023 was posted at PhP0.82. This means that the purchasing capability of PhPI.OO in 2018 has decreased by 18 centavos.

Among the provinces, La Union posted the highest PPP in December 2023 with PhP0.85. It was followed by Ilocos Norte with PhP0.82. Meanwhile, Ilocos Sur and Pangasinan both recorded the lowest PPP of PhP0.81.
It can be gleaned in Figure 5 that PPPs in all the provinces of the region in December 2023 were lower than their respective levels in December 2022 except Ilocos Sur which recorded increase in its PPP. La Union and Pangasinan decreased by PhP0.04 and PhP0.02, respectively. Ilocos Norte’s PPP decreased by PhP0.01.

SGD. ATTY. SHEILA O. DE GUZMAN, CPA
Regional Director, RSSO I