Among the provinces, Ilocos Sur posted the highest price index in August 2022 at 121.2. Ilocos Norte followed at 118.3 and Pangasinan at 117.0. Meanwhile, La Union recorded the lowest price index of 110.2 during the period.

Compared to the August 2021 levels, all provinces marked increases in the price index. Ilocos Sur recorded the highest increase of 8.7 percentage points followed by Ilocos Norte with 8.2 percentage points. Pangasinan and La Union have increased by 7.1 and 3.5 percentage points, respectively.

 

By Commodity Group

The top three commodity groups that recorded high price indices in August 2022 were: alcoholic beverages (146.5); financial services (146.0); and transport (126.2). On the other hand, the bottom three

commodity groups with low price indices were: information and communication (101.2); recreation, sport and culture (108.5); and furnishings, household equipment and routine maintenance of the house

(109.1).

 

As shown in Figure 3, the inflation rate of the Ilocos Region eased from 6.3 percent in July 2022 to 6.2 percent in August 2022, a decrease of 0.1 percentage point. However, it is higher by 1.6 percentage points from the recorded rate of 4.6 percent in August 2021.

 

The commodity groups that contributed in the deceleration of the August 2022 inflation rate in the region were:

a. Transport, 14.7 percent;

b. Food and Non-alcoholic beverages, 4.8 percent; and

c. Clothing and Footwear, 3.0 percent.

 

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

a. Housing, Water, Electricity, Gas, and Other Fuels, 10.8 percent;

b. Alcoholic Beverages and Tobacco, 6.9 percent;

c. Personal Care, and Miscellaneous Goods and Services, 4.5 percent;

d. Furnishings, Household Equipment, and Routine Household Maintenance, 4.2 percent;

e. Health, 4.0;

f. Recreation, Sport and Culture, 3.3 percent;

g. Restaurants and Accommodation Services, 2.6 percent;

h. Education, 0.9 percent; and

i. Information and Communication, 0.5 percent;

Financial services remained stable in August 2022. (see Table 2)

 

By Province

Among the provinces, Ilocos Sur posted the highest inflation rate at 7.7 percent in August 2022, followed by Ilocos Norte and Pangasinan at 7.4 percent and 6.5 percent, respectively. The lowest inflation rate was registered in La Union at 3.3 percent.

Compared to their respective levels in August 2021, all the provinces, except La Union, have increased inflation rates. Ilocos Norte and Ilocos Sur have increased by 3.6 percentage points, and 1.2 percentage points, respectively, while Pangasinan has 1.9 percentage points increase. Meanwhile, La Union’s inflation rate went down by 0.5 percentage point.

Purchasing Power of Peso

The Purchasing Power of the Peso (PPP) in the Ilocos Region in August 2022 was posted at Php0.86. This means that the purchasing capability of Php1.00 in 2018 has decreased by 14 centavos.

Among the provinces, La Union posted the highest PPP in August 2022 with Php0.91. It was followed by Pangasinan and Ilocos Norte both with Php0.85 PPP. Meanwhile, Ilocos Sur recorded the lowest PPP of Php0.83.