Consumer Price Index

The Consumer Price Index (CPI) of the Ilocos Region in March 2023 was posted at 120.6. This means that one needs Php120.60 to purchase the same set of goods and services that were worth Php100.00 in 2018.

The region’s CPI in March 2023 increased by 6.7 percent from 4.6 percent in March 2022. Meanwhile, it has increased by -0.3 percent from February 2023. (see Table 2)

Among the provinces, Ilocos Sur posted the highest price index in March 2023 at 124.5. Pangasinan and Ilocos Norte followed with 121.8 and 119.9, respectively. Meanwhile, La Union recorded the lowest price index of 114.0 during the period.

Compared to the March 2022 levels, all provinces marked increases in the price index. Pangasinan recorded the highest increase of 8.7 percentage points, followed by Ilocos Sur with 7.1. percentage points. Ilocos Norte and La Union have increases of 6.1 and 5.3 percentage points, respectively.
 

By Commodity Group

The top three commodity groups that recorded high price indices in March 2023 were: alcoholic beverages and tobacco (153.1); financial services (146.0); and transport (123.8). On the other hand, the bottom three commodity groups with low price indices were: information and communication (101.8); recreation, sport and culture (112.3); and education services (113.2).

As shown in Figure 3, the inflation rate of the Ilocos Region deccelerated from 8.3 percent in February 2023 to 6.7 percent in March 2023, a decrease of 1.6 percentage points. Similarly, it is higher by 2.1 percentage points from the recorded rate of 4.6 percent in March 2022.

The commodity groups that contributed in the decceleration of the March 2023 inflation rate compared to the previous month in the region were:

a.    Food and Non-Alcoholic Beverages, 9.6 percent;

b.    Health, 6.1 percent;

c.    Housing, Water, Electricity, Gas and Other Fuels, 5.1 percent;

d.    Restaurants and Accommodation Services, 5.0 percent; and

e.    Transport, 1.5 percent.

On the other hand, incereases were recorded in the indices of the following commodity groups:

a.    Alcoholic Beverages and Tobacco, 9.0 percent;

b.    Furnishings, Household Equipment and Routine Household Maintenance, 9.0 percent;

c.    Personal Care, and Miscellaneous Goods and Services, 7.3 percent

d.    Clothing and Footwear, 6.0 percent;

e.    Recreation, Sport and Culture, 4.4 percent; and

f.    Information and Communication, 1.0 percent.

Education services and Financial services remained stable in March 2023. (see Table 2)

By Province

Among the provinces, Pangasinan posted the highest inflation rate at 7.7 percent in March 2023, followed by Ilocos Sur and Ilocos Norte at 6.0 percent, and 5.4 percent, respectively. The lowest inflation rate was registered in La Union at 4.9 percent.

Compared to their respective levels in March 2022, half of the provinces have increased inflation rates. La Union and Pangasinan have increased by 1.9 percentage points, and 3.7 percentage points, respectively. On the other hand, Ilocos Norte and Ilocos Sur have decreased inflation rates by 0.5 percentage point, and 2.2 percentage points, respectively.

Purchasing Power of Peso

The Purchasing Power of the Peso (PPP) in the Ilocos Region in March 2023 was posted at Php0.83. This means that the purchasing capability of Php1.00 in 2018 has decreased by 17 centavos.

Among the provinces, La Union posted the highest PPP in March 2023 with Php0.88. It was followed by Ilocos Norte and Pangasinan with Php0.83 and Php0.82, respectively. Meanwhile, Ilocos Sur recorded the lowest PPP of Php0.80.

It can be gleaned in Figure 5 that PPPs in all the provinces of the region in March 2023 were lower than their respective levels in March 2022. Pangasinan has the highest decrease of Php0.06 followed by Ilocos Norte and Ilocos Sur both with Php0.05. Meanwhile, La Union registered decrease in its PPP at Php0.04.

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