Consumer Price Index

The Consumer Price Index (CPI) of Ilocos Region in August 2021 was posted at 128.5. This means that on the average, prices of goods and services in the region increased by 28.5 percent from the base year 2012.    

The region’s CPI in August 2021 increased by 4.98 percent from August 2020 and 0.86 percent from July 2021. 

By Province

Among the provinces, Pangasinan posted the highest price index in August 2021 at 131.0. Ilocos Norte followed at 130.9 and Ilocos Sur at 127.1. Meanwhile, La union recorded the lowest price index of 119.3 during period.

Compared to August 2020 levels, all provinces marked increases in price index. Ilocos Sur recorded the highest increase of 7.17 percent followed by Pangasinan with 5.22 percent, La Union with 3.92 percent and Ilocos Norte with 3.48 percent.

By Commodity Group

The top three commodity groups that recorded high price indices  in the region in August 2021 were: alcoholic beverages and tobacco (239.1); food and non-alcoholic beverages (138.9); and furnishings, household equipment and routine maintenance of the house (127.7).   On the other hand, the bottom three commodity groups with low price indices were: communication (101.9); education (111.3); and recreation and culture (112.3).

Inflation Rate

As shown in figure 3, the inflation rate in the Ilocos Region settled at 5.0 percent in August 2021. It is the highest inflation rate of the region in the past twelve months. Meanwhile, the lowest record was noted in September 2020 at 2.5 percent. The region’s annual rate in the previous month was 4.3 percent, while 2.6 percent in August 2020.

The inflation rate of the region in August 2021 is higher by 0.7 percentage point from July 2021 and 2.4 percentage points from August 2020.

By Province

Among the provinces in the region, Ilocos Sur posted the highest inflation rate at 7.2 percent in August 2021, followed by Pangasinan at 5.2 percent. Inflation rates in La Union and Ilocos Norte were pegged at 3.9 percent and 3.5 percent, respectively.

Compared to their respective levels in August 2020, all provinces recorded increasing inflation rates, except Ilocos Norte. Ilocos Sur recorded the highest increase of 4.7 percentage points. Meanwhile, La Union has increased by 1.4 percentage points and Pangasinan has increased by 2.6 percentage points. On the other hand, Ilocos Norte decreased by 0.4 percentage point in their inflation rate.

By Commodity Group

The alcoholic beverages and tobacco recorded the highest inflation rate among the commodity groups with 10.4. It was followed by the transport with 10.3, and food and non-alcoholic beverages with 6.8. Meanwhile, communication, and education have the lowest inflation rates of 0.2 and 1.4, respectively.

Purchasing Power of Peso

The Purchasing Power of the Peso (PPP) in the Ilocos Region in August 2021 was posted at Php0.78.  This means that the purchasing capability of Php1.00 in 2012 decreased by 22 centavos. 

Among the provinces, La Union posted the highest PPP in August 2021 with Php0.84. It was followed by Ilocos Sur with Php0.79 PPP.  Meanwhile, the least were recorded in Ilocos Norte and Pangasinan, both at Php0.76. 

It can be gleaned in Figure 5 that PPP in all the provinces in August 2021 were lower than their respective levels in August 2020. The PPP in Ilocos Norte and La Union went down by Php0.03. The PPP in Pangasinan and Ilocos Sur likewise declined by Php0.04 and Php0.05, respectively.