Philippines CPI Analysis: Trends, Inflation, and Economic Indicators

This presentation provides an in-depth analysis of the Philippines' Consumer Price Index (CPI), covering various aspects of the country's economic landscape. It identifies the government body responsible for determining the basket of goods and details the frequency of its updates. The presentation compares the Philippines' basket of goods to Canada's, highlighting similarities and differences. It analyzes the 10-year historical CPI trend, supported by relevant article references, and examines the current and historical inflation rates. The presentation also explores food inflation trends, providing insights into the causes of inflation and deflation in the economy. Furthermore, it correlates the country's GDP per capita with the inflation rate, offering an understanding of the relationship between the standard of living and the cost of living. The analysis draws from trading economics.com and includes references to relevant academic research to support its findings.

Macroeconomic
assignment
Inflation and consumer price index

Institution for the determination of
good basket
The Philippines Statistics
authority determines the
basket and the products that
comprises the basket.
Generally after every 24
months the consumer basket
is updated to include and
exclude some of the goods.
The base year used for the
calculation of the CPI for this
country is 2012.

Comparison of the basket of
goods
Both the basket of the goods of
Canada and Philippines include
the basic thing which food and
shelter in different forms.
However, while the basket of
Philippines include restaurant
as an item, it is not the case for
Canada.
Other than that most of the
items are common and basic in
both the baskets.

Historical data of CPI of Philippines
and trend analysis
•The trend that
can be seen
from the figure
below follows
the business
cycle.
•The trend in
the CPI for the
country shows
an overall
increase with
time.

Article analysis that supports the
trend analysis
Mazuki & Asyran,
(2020) states that
position of the
economy in the
business cycle
determines the
consumer savings.
Again the paper also
states that, the CPI of
Philippines have
increased over the
time which matches
with the justification.

Current inflation rate and trend in
the inflation rate
•The current
inflation rate of
the country is
2.2% as of
February 2020.
•The oscillating
trend in the
inflation rate can
be seen which
increases with the
GDP growth rate of
the country (Solina
& Ocampo, 2020).

Food inflation
The food inflation rate
trend shows there is a
huge oscillation.
The GDP per capita has
increased as well with the
increase in the inflation.
The sudden decrease in
food inflation is due to
the intervention of the
government (Brillantes,
Raquiza & Lorenzo,
2019).

Reference
Brillantes, A. B., Raquiza, M. V. R., & Lorenzo, M. P. M.
(2019). Social equity in the Philippines: A continuing but
elusive promise. In Social Equity in the Asia-Pacific
Region (pp. 187-213). Palgrave Macmillan, Cham.
Mazuki, A., & Asyran, A. A. (2020). A study on
determinants of household saving in Asean Countries:
Malaysia, Philippines and Thailand/Ahmad Aimi Asyran
Ahmad Mazuki.
Solina, A. M., & Ocampo, L. V. G. (2020). Monetary
Policy Indicators and Economic Growth in the
Philippines 1986-2017. Review of Integrative Business
and Economics Research, 9, 160-170.

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