What is Consumer Price Index?
The Consumer Price Index (CPI) is an indicator of the change in the average prices of a fixed basket of goods and service commonly purchased by an average Filipino household for their day-to-day consumption relative to a base year.
The market basket represents selected goods and services commonly purchased by an average Filipino household. The baseyear for the current CPI is 2006.
As an indicator, the CPI is most widely used in the calculation of the inflation rate and the Purchasing Power of Peso (PPP).
What is Inflation Rate?
Inflation rate is the equivalent to a decline in the PPP. It is the change in the CPI over a specific period of time.
What is Purchasing Power of Peso?
The Purchasing Power of Peso, gives an indication of how much the Philippine Peso is worth in a given period relative to its value in a base period.
