Consumer Price Index

The Consumer Price Index (CPI) of the Ilocos Region in August 2023 was posted at 121.9. This means that one needs PhP121.90 to purchase the same set of goods and services that were worth PhP100.00 in 2018.

The region’s CPI in August 2023 decreased by 4.6 percent from 6.2 percent in August 2022. Meanwhile, it has increased by 1.8 percent from the July 2023 CPI. (see Table 2)
 

Among the provinces, Ilocos Sur posted the highest price index in August 2023 at 124.9. Ilocos Norte followed at 122.8, and Pangasinan at 122.7. Meanwhile, La Union recorded the lowest price index of 116.0 during the period.

Compared to the August 2022 levels, all provinces marked increases in the price index. La Union recorded the highest increase of 5.8 percentage points, followed by Pangasinan with 5.7 percentage points. Ilocos Norte and Ilocos Sur increased by 4.5, and 3.7 percentage points, respectively.

By Commodity Group

The top three commodity groups that recorded high price indices in August 2023 were: alcoholic beverages and tobacco (158.0); financial services (146.0); and food and non-alcoholic beverages (129.5). On the other hand, the bottom three commodity groups with low price indices were: information and communication (101.8); recreation, sport and culture (111.4); and housing, water, electricity, gas and other fuels (113.2).

As shown in Figure 3, the inflation rate of the Ilocos Region increased from 3.6 percent in July 2023 to 4.6 percent in August 2023, higher by 1.0 percentage point. On the other hand, it is lower by 1.6 percentage points from the recorded rate of 6.2 percent in August 2022.

Three (3) out of the thirteen commodity groups exhibited higher inflation rates that contributed to the uptrend of inflation in Ilocos Region in August 2023:

a.    Food and non-alcoholic beverages at 10.6 percent;

b.    Transport, -1.7 percent; and

c.    Education services, 4.1 percent.

The rest of the commodity groups have decreased inflation compared to previous month’s rates. Meanwhile, financial services retained its previous month’s inflation rate or had zero percent annual growth. (see Table 2)

By Province

Among the provinces, La Union posted the highest inflation rate at 5.3 percent in August 2023 followed by Pangasinan and Ilocos Norte, at 4.9 percent and 3.8 percent, respectively. Ilocos Sur registered the lowest inflation rate at 3.1 percent.

Compared to their respective levels in August 2022, all provinces exhibited decreases in inflation rates except La Union which increased by 2.0 percentage points. Ilocos Sur decreased by 4.6 percentage points while Ilocos Norte and Pangasinan exhibited decreased inflation rate by 3.6 percentage points and 1.6 percentage points, respectively.

Purchasing Power of Peso

The Purchasing Power of the Peso (PPP) in the llocos Region in August 2023 was posted at PhP0.82. This means that the purchasing capability of PhP 1.00 in 2018 has decreased by 18 centavos.

Among the provinces, La Union posted the highest PPP in August 2023 with PhP0.86. It was followed by Ilocos Norte and Pangasinan, both with PhP0.81 PPP. 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 August 2023 were lower than their respective levels in August 2022. La Union has the highest decrease of PhP0.05 followed by Ilocos Norte and Pangasinan, both decreased by PhP0.04. Meanwhile, Ilocos Sur’s PPP decreased by PhP0.03.

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