What is the CPI?
An indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to base year.
What is Inflation Rate?
Rate of change in the average price level as measured by the CPI between two periods.
It is equivalent to the decline in the internal purchasing power of the peso.
- It is a derived indicator by comparing the CPI between two periods, usually a year.
What is the Purchasing Power of the Peso?
shows how much the peso in the base year (2006) is worth in another year.
In Camarines Sur, PPP for November 2017
= (1/159.2) * 100
= PhP 0.63
A peso in 2006 is only worth 63 centavos in November 2017, or you may need PhP159.2 to purchase the same volume of goods and services worth P100.00 in 2006.