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 June 2018
= (1/165.9) * 100
= PhP 0.60
A peso in 2006 is only worth 60 centavos in June 2018, or you may need PhP 165.9 to purchase the same volume of goods and services worth P100.00 in 2006.