Consumer Price Index

The Consumer Price Index (CPI) of the Ilocos Region in May 2023 was posted at 120.1. This means that one needs Php120.10 to purchase the same set of goods and services that were worth Php100.00 in 2018.

The region’s CPI in May 2023 decreased by 5.2 percent from 5.7 percent in May 2022. Meanwhile, it has decreased by 0.3 percent from April 2023. (see Table 2)

Among the provinces, Ilocos Sur posted the highest price index in May 2023 at 123.9. Pangasinan followed at 121.4, and Ilocos Norte at 119.3. Meanwhile, La Union recorded the lowest price index of 113.3 during the period.

Compared to the May 2022 levels, all provinces marked increases in the price index. Pangasinan recorded the highest increase of 7.0 percentage points, followed by Ilocos Sur with 5.7 percentage points. Ilocos Norte and La Union increased by 3.9, and 3.7 percentage points, respectively.
 

By Commodity Group

The top three commodity groups that recorded high price indices in May 2023 were: alcoholic beverages and tobacco (155.8); financial services (146.0); and food and non-alcoholic beverages (122.7). On the other hand, the bottom three commodity groups with low price indices were: information and communication (101.8); recreation, sport and culture (111.8); education services and (113.2).

As shown in Figure 3, the inflation rate of the Ilocos Region decreased from 5.9 percent in April 2023 to 5.2 percent in May 2023, lower by of 0.7 percentage point. Furthermore, it is lower by 0.5 percentage point from the recorded rate of 5.7 percent in May 2022

Nine out of the thirteen commodity groups exhibited lower inflation rates that contributed to the slower inflation in Ilocos Region in May 2023:

a.    Housing, water, electricity, gas and other fuels, 4.2 percent;

b.    Transport, -4.9 percent;

c.    Food and non-alcoholic beverages at 7.7 percent;

d.    Alcoholic beverages and tobacco at 9.3 percent;

e.    Health, 5.9 percent;

f.    Personal care, and miscellaneous goods and services, 6.8 percent;

g.    Recreation, sport and culture, 3.8 percent;

h.    Furnishings, household equipment and routine household maintenance, 8.8 percent; and

i.    Clothing and footwear, 6.1 percent.
The rest of the commodity groups retained their previous month’s inflation rates or had zero percent annual growths. (see Table 2)
 

By Province

Among the provinces, Pangasinan posted the highest inflation rate at 6.1 percent in May 2023 followed by Ilocos Sur at 4.8 percent. The lowest inflation rate of 3.4 percent was registered in La Union and Ilocos Norte.

Compared to their respective levels in May 2022, Ilocos Norte, and Ilocos Sur both decreased by 3.7 percentage points. Meanwhile, La Union exhibited decreased inflation rate by 0.8 percentage point. On the other hand, the province of Pangasinan exhibited increase in inflation rate by 0.9 percentage point.

Purchasing Power of Peso

The Purchasing Power of the Peso (PPP) in the Ilocos Region in May 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 May 2023 with Php0.88. It was followed by Ilocos Norte with Php0.84 PPP, and Pangasinan with Php0.82 PPP. Meanwhile, Ilocos Sur recorded the lowest PPP of Php0.81.
It can be gleaned in Figure 5 that PPPs in all the provinces of the region in May 2023 were lower than their respective levels in May 2022. Pangasinan has the highest decrease of Php0.05 followed by Ilocos Sur with Php0.04. Meanwhile, Ilocos Norte, and La Union both registered decrease in its PPP at Php0.03.

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