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.