CPI User's Manual

CHAPTER I
THE CONSUMER PRICE INDEX
1.1. Introduction
Consumer Price Index (CPI): What it measures
CPI is an indicator of the change in the average retail prices of a fixed

basket of goods and services commonly purchased by households relative to a
base year. It shows how much on the average, prices of goods and services
have increased or decreased from a particular reference period known as base
year. Since price is the cost or the amount of money for which something can be
bought or sold, CPI therefore compares the current cost of certain goods and
services with their cost at an earlier time.
What does the CPI mean?
The CPI stands for the percentage change in the average prices of goods
and services commonly bought by a group of consumers from the base year.
Thus, an index of 166.6 in 2002 means that consumer prices on the average
have increased by 66.6 percent from 1994. Also, it means that a set of
commodities which can be purchased by an average Filipino household with
P100 in 1994 can be bought with P166.60 in 2002.
Uses of the CPI:
Specifically, the CPI is use as follows:
As a means of comparing price movements in different areas of

the country;
As a definite measure of change in the value of money or of the

purchasing power of the currency;
As basis for determining inflation rates;
As basis in adjusting or escalating wages, contracts, pensions,

taxes and other transaction flows;
As deflator to express value series in real terms, that is measuring

the change in actual volume of transaction by removing effects of
price changes;
As basis for redirecting fiscal and monetary policies, and trade and
exchange rate policies;
As basis for forecasting business and economic conditions; and;
As an indicator of the economic well-being of a certain area,

business or industry.
1.2. Historical Background
The NSO CPI dates back to 1945 and has undergone several revisions.
Prior to that, CPI, which was then referred to as Cost of Living Index, was
constructed by the Labor Statistics Division of the Department of Labor. The task
of calculating the index was transferred to the Bureau of the Census and
Statistics (now the National Statistics Office) on January 1, 1941.
The first series constructed by the BCS was in 1945. The Cost of Living
Index series had 1941 as base year and covered Manila only. The market basket
contained 66 commodities representing goods and services commonly
purchased by low-income families (families living within minimum level of
subsistence). This series lasted for 18 years from 1945 to 1963.
2
The first revision was made in 1964. New weights were based on the
results of the 1961 Survey of Income and Expenditures while the average price
for 1960-1962 was used as the base price. This new series was referred to as
the Consumer Price Index for Low-Income Families in Manila (families whose
annual income did not exceed P2,400). The market basket contained 244 items.
Subsequent revisions were done in the following years:
1965: With 1961 as base year. The series covered Manila only.
1970: With 1966 as base year. This time, CPI was computed for various income
groups: Low, middle and all-income groups. The coverage was extended
to all provinces. Moreover, for Manila and suburbs, CPI for high-income
group was also computed.
The market basket consisted of 249 items for low-income, 368 for middle-
income, 242 for high-income and 479 for all-income groups.
1976: With 1972 as base year. This CPI series was limited only to all-income
households. It covered all regions and provinces in the country including
the National Capital Region (NCR).
1982: With 1978 as base year. Weights were derived based on the 1975 Family
Income and Expenditures Survey (FIES) results updated to 1978 prices.
This series covered all-income households. The market basket contained
407 items.
3
1992: With 1988 as base year. Weights were derived from the expenditure data
of the 1988 FIES. A market basket for each of the 13 regions was
established with the number of items ranging from 384 (for NCR) to 651
(for Region IV). Unlike in previous series where the composition of the
market basket was determined by a technical committee (the Inter-Agency
Committee on Price Statistics), the market basket used in this series was
determined through the 1985 Commodity and Outlet Survey (COS) which
was conducted using the sample households of the 1985 FIES. The 1985
COS was the first survey of its kind in the country with the purpose of
identifying the market basket by asking sample households the
commodities and services that they consumed most of the time and the
type of outlets where these commodities and services are commonly
purchased or availed of.
1996: With 1994 as base year. The expenditure data from the 1994 FIES survey
results were used as weights. Individual provincial and city market baskets
were constructed using the results of the 1994 COS undertaken by the
NSO and the results of the validation work on the availability and
saleability of the items in the 1988 market basket in the different
geographical areas. There were no such baskets in the 1988-based series
since the regional market baskets were used for the provincial CPIs.
2000: With 2000 as base year. Updating activity actually started in October 2000.
Updating of the 1994 market basket was done through an interview of key
informants in various outlets as to the availability and saleability of items
they sell. The expenditure data from the 2000 FIES were the basis of the
new CPI weights. Final reference files (base price, market baskets and
weights) were completed in 2002. Computation of the 2000 and 2001 CPI
series started in October 2002.
4
The new series with 2000 as base year is part of the Office regular
calendar of activities to update the present base year. The new series also
features the use of separate provincial and city market baskets and the
new set of 2000 weights also computed at the provincial and city level.
1.3. Features of the 2000-based CPI
1.3.1. Base Period
Base Period or Base Year is the period, usually a year, at which the index
number is set to 100. It is the reference point of the index number series.
The year 2000 was chosen as the base year for two major reasons: (1)
because it was perceived to be more politically, economically and socially stable
and (2) it was the year when the Family Income and Expenditures Survey (FIES)
which is the basis of weights was conducted.
1.3.2. Market Basket
Market basket is a term used to refer to a sample of goods and services

that are commonly purchased and bought by an average Filipino household.
The market basket used in the construction of the 2000 CPI was drawn
from the results of the updating activity of the 1994 market basket. Updating of
the 1994 market basket was done through an interview of key informants in
various outlets as to the availability and saleability of the items they sell.
Provinces and selected cities had their own market baskets.
5
Table 1. Number of Commodities in the CPI Market Basket
Percent No. of Percent of No. of New Percent of
Change of Common Common Items in the New Items
Region/ Old New
New Items in Items to New Market
Basket Basket to New
Province Basket to the Market Basket
New Market
(1994=100) (2000=100) Old Basket
Market Basket
Basket Basket
NCR 701 701 490 69.9 211 30.1
CAR
Abra 434 428 (1.4) 192 44.9 236 55.1
Benguet 464 440 (5.2) 314 71.4 129 29.3
Ifugao 364 371 1.9 234 63.1 137 36.9
Kalinga 492 454 (7.7) 320 70.5 134 29.5
Mt. Province 405 410 1.2 236 57.6 174 42.4
Baguio City 454 354 (22.0) 185 52.3 169 47.7
Apayao 454
REGION 1
Ilocos Norte 532 566 6.4 381 67.3 185 32.7
Ilocos Sur 439 524 19.4 302 57.6 232 44.3
La Union 526 574 9.1 247 43.0 327 57.0
Pangasinan 607 624 2.8 531 85.1 93 14.9
REGION 2
Batanes 285 285 285 100.0
Cagayan 565 587 3.9 344 58.6 243 41.4
Isabela 586 690 17.7 493 71.4 197 28.6
Nueva Vizcaya 502 545 8.6 296 54.3 249 45.7
Quirino 413 407 (1.5) 230 56.5 177 43.5
REGION 3
Bataan 546 565 3.5 395 69.9 170 30.1
Bulacan 594 592 (0.3) 564 95.3 28 4.7
Nueva Ecija 677 682 0.7 359 52.6 323 47.4
Pampanga 574 580 1.0 363 62.6 217 37.4
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Table 1. Continued

Region/ Old New
New Market
(1994=100) (2000=100) Old Basket
Market Basket
Basket Basket
Tarlac 583 644 10.5 463 71.9 181 28.1
Zambales 558 578 3.6 428 74.0 150 26.0
Olongapo City 521 544 4.4 383 70.4 161 29.6
Aurora 461 455 (1.3) 245 53.8 210 46.2
REGION 4A
(CALABARZON)
Batangas 568 556 (2.1) 433 77.9 123 22.1
Cavite 622 626 0.6 546 87.2 80 12.8
Laguna 633 636 0.5 528 83.0 108 17.0
Quezon 601 582 (3.2) 533 91.6 49 8.4
Rizal 647 666 2.9 473 71.0 180 27.0
REGION 4-B
(MIMAROPA)
Marinduque 502 538 7.2 323 60.0 215 40.0
Occ. Mindoro 553 559 1.1 417 74.6 142 25.4
Or. Mindoro 565 573 1.4 540 94.2 33 5.8
Palawan 553 537 (2.9) 326 60.7 211 39.3
Romblon 467 499 6.9 375 75.2 124 24.8
REGION 5
Albay 593 624 5.2 453 72.6 171 27.4
Cam. Norte 534 508 (4.9) 411 80.9 97 19.1
Cam. Sur 566 571 0.9 541 94.7 30 5.3
Catanduanes 494 434 (12.1) 270 62.2 164 37.8
Masbate 527 516 (2.1) 367 71.1 149 28.9
Sorsogon 505 485 (4.0) 395 81.4 90 18.6
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Table 1. Continued

Region/ Old New
New Market
(1994=100) (2000=100) Old Basket
Market Basket
Basket Basket
REGION 6
Aklan 563 566 0.5 398 70.3 168 29.7
Antique 595 586 (1.5) 468 79.9 113 19.3
Capiz 591 571 (3.4) 400 70.1 161 28.2
Iloilo 667 627 (6.0) 502 80.1 125 19.9
Negros Occ. 771 750 (2.7) 514 68.5 236 31.5
Bacolod City 610 588 (3.6) 418 71.1 170 28.9
Iloilo City 508 500 (1.6) 410 82.0 90 18.0
Guimaras 500
REGION 7
Bohol 510 508 (0.4) 304 59.8 204 40.2
Cebu 602 552 (8.3) 381 69.0 171 31.0
Negros Oriental 597 614 2.8 504 82.1 110 17.9
Siquijor 384 387 0.8 216 55.8 171 44.2
Cebu City 545 533 (2.2) 192 36.0 341 64.0
REGION 8
E. Samar 462 558 20.8 201 36.0 357 64.0
Leyte 567 639 12.7 306 47.9 333 52.1
N. Samar 516 524 1.6 357 68.1 167 31.9
W. Samar 511 510 (0.2) 251 49.2 259 50.8
S. Leyte 507 552 8.9 318 57.6 234 42.4
Biliran 520
REGION 9
Zamboanga 598 470 (21.4) 311 66.2 159 33.8

Norte
Zamboanga . Sur 625 610 (2.4) 467 76.6 143 23.4
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Table 1. Continued

Region/ Old New
New Market
(1994=100) (2000=100) Old Basket
Market Basket
Basket Basket
Zamboanga City 558 568 1.8 382 67.3 186 32.7
REGION 10
Bukidnon 591 644 9.0 453 70.3 191 29.7
Camiguin 351 362 3.1 314 86.7 48 13.3
Mis. Occidental 515 523 1.6 467 89.3 56 10.7
Lanao Norte 578 604 4.5 217 35.9 375 62.1
Mis. Oriental 572 682 19.2 494 72.4 189 27.7
Cag.de Oro City 664
REGION 11
Davao Norte 631 522 (17.3) 333 63.8 189 36.2
Davao Sur 561 519 (7.5) 324 62.4 194 37.4
Davao Oriental 518 493 (4.8) 365 74.0 128 26.0
Davao City 587 562 (4.3) 362 64.4 200 35.6
REGION 12
North Cotabato 521 529 1.5 362 68.4 167 31.6
Sultan Kudarat 516 517 0.2 319 61.7 198 38.3
Cotabato City 476 480 0.8 410 85.4 70 14.6
South Cotabato 629 635 1.0 622 98.0 13 2.0
Gen.Santos City 492 503 2.2 489 97.2 14 2.8
Sarangani 503
Caraga
Agusan Norte 564 557 (1.2) 367 65.9 190 34.1
Agusan Sur 498 490 (1.6) 368 75.1 126 25.7
Surigao Norte 526 587 11.6 492 83.8 95 16.2
Surigao Sur 514 509 (1.0) 445 87.4 64 12.6
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Table 1. Continued

Region/ Old New
New Market
(1994=100) (2000=100) Old Basket
Market Basket
Basket Basket
ARMM
Basilan 509 486 (4.5) 408 84.0 78 16.0
Lanao Sur 472 460 (2.5) 449 97.6 21 4.6
Maguindanao 579 650 12.3 569 87.5 81 12.5
Sulu 469 469 469 100.0
Tawi-Tawi 484 530 9.5 444 83.8 86 16.2
Marawi City 397 394 (0.8) 389 98.7 5 1.3
1.3.3. Weights
A desirable system should consider the relative importance of the

components of the index. For the CPI, the weighting pattern uses expenditures
on various items by households as a proportion to total expenditure. Weight is a
value attached to a commodity or group of commodities to indicate the relative
importance of that commodity or group of commodities in the market basket.
The weights for the 2000-based CPI were derived from the expenditure
data of the 2000 FIES, a nationwide survey that covered 41,000 households. The
survey gathered income and expenditure data which include the levels of
consumption by item of expenditure up to the level necessary for the generation
of the CPI weights.
Each province of the country was considered a domain so that weights

were computed up to the provincial level. The weight for each item of expenditure
is a proportion of that item of expenditure to the total national expenditure. The
total (all items) national expenditure is equal to 100. The weight of the region is
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equal to the sum of the weights of the provinces belonging to that region. The
sum of the weights of the region equals the national weight.
In the computation of CPI weights based on the FIES, slight modifications

were introduced, as follows:
1) Total amount of Expenditures in the CPI is lower than that in the FIES
because there were items in the FIES that are not included in the CPI, to wit:
a) Other Expenditures: (H3 of FIES)
Item 1 gifts and assistance to private individuals outside the family;
Item 2 contributions to church religious institutions, and
b) Gifts, Contributions to Others: (H2 of FIES)
Item 4 other gifts and contributions
2) Weight for Food, Beverages and Tobacco in the CPI also includes
expenditures for items found in the Special Occasions of the Family (H1 of
FIES) thus, total FBT in the CPI is higher than in the FIES.
Modifications for the items found in the Special Occasions of the

Family are as follows:
Item 1 Food and refreshments prorated to all the items under food
Item 2 Alcoholic beverages were included in alcoholic beverages under

the beverages group
Item 3 Services of priests .. were included in personal and

recreational services
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Item 4 Rental of space . were included in rental and recreational
services
Item 5 Package tours were included in transportation and

communication
Item 6 Others (balloons, flowers, etc.) . were included in recreational

services
The CPI weights of the six major groups by area are shown below:
Table 2. Weights for All Income Households by Area by Commodity Group
PHILIPPINES NCR AONCR

COMMODITY GROUP
2000=100 1994=100 2000=100 1994=100 2000=100 1994=100
ALL ITEMS 100.000000 100.000000 30.006117 27.983035 69.993883 72.016965
FBT 50.030966 55.118450 12.075321 12.736434 37.955645 42.382016
CLOTHING 3.003919 3.664997 0.776052 0.850825 2.227867 2.814172
HOUSING & REPAIR 16.796037 14.690926 7.387689 6.272547 9.408348 8.418379
FUEL, LIGHT & WATER 6.949620 5.736605 2.109550 1.839072 4.840070 3.897533
SERVICES 15.889070 12.275750 5.786812 4.196235 10.102258 8.079515
MISCELLANEOUS 7.330388 8.513272 1.870693 2.087922 5.459695 6.425350
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Table 2a. Weights for All Income Households by Region and Province and by Commodity Group
ALL ITEMS FBT CLOTHING HOUSING & FUEL LIGHT & SERVICES MISCELLANEOUS
REGIONS/ REPAIRS WATER
PROVINCES
2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100
CAR 1.676637 1.690886 0.859606 0.924188 0.049861 0.061384 0.276249 0.280717 0.108831 0.097064 0.264217 0.187367 0.117873 0.140166
ABRA 0.189166 0.177852 0.100260 0.117696 0.006711 0.004389 0.024770 0.017773 0.013572 0.013317 0.029601 0.012731 0.014252 0.011946
BENGUET 0.427733 0.523914 0.222581 0.304439 0.015129 0.020740 0.065122 0.079474 0.024426 0.030351 0.068028 0.051773 0.032447 0.037137
IFUGAO 0.115455 0.126625 0.073765 0.081882 0.003127 0.003352 0.010543 0.015634 0.007587 0.006779 0.013210 0.013103 0.007223 0.005875
KALINGA 0.145747 0.295169 0.079976 0.136181 0.004573 0.012141 0.022206 0.062543 0.009487 0.012330 0.018644 0.036381 0.010861 0.035593
MT.
PROVINCE 0.108873 0.128170 0.062477 0.081788 0.005182 0.007333 0.012610 0.009315 0.007689 0.006463 0.011144 0.013530 0.009771 0.009741
BAGUIO CITY 0.626246 0.439156 0.279975 0.202202 0.013135 0.013429 0.134889 0.095978 0.041553 0.027824 0.117544 0.059849 0.039150 0.039874
APAYAO 0.063417 0.040572 0.002004 0.006109 0.004517 0.006046 0.004169
REGION 1 4.307629 4.481873 2.387283 2.662496 0.161764 0.197322 0.516478 0.452021 0.308186 0.277925 0.614359 0.534598 0.319559 0.357511
ILOCOS
NORTE 0.648401 0.597588 0.347492 0.372222 0.030943 0.033456 0.081393 0.040106 0.041754 0.032055 0.087888 0.063065 0.058931 0.056684
ILOCOS SUR 0.629863 0.685326 0.344677 0.420373 0.020747 0.028135 0.077955 0.068848 0.045438 0.043572 0.092603 0.072245 0.048443 0.052153
LA UNION 0.715185 0.794688 0.388722 0.454972 0.025975 0.039424 0.102423 0.099374 0.047427 0.048087 0.097917 0.088213 0.052721 0.064618
PANGASINAN 2.314180 2.404271 1.306392 1.414929 0.084099 0.096307 0.254707 0.243693 0.173567 0.154211 0.335951 0.311075 0.159464 0.184056
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Table 2a. Continued
PROVINCES
2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100
REGION 2 2.788837 3.228977 1.662633 1.927406 0.089975 0.141824 0.317748 0.352298 0.181865 0.167996 0.344365 0.380372 0.192251 0.259081
BATANES 0.021169 0.029165 0.011656 0.013553 0.000953 0.006341 0.002287 0.002318 0.001343 0.000947 0.002606 0.003597 0.002324 0.002409
CAGAYAN 0.841271 1.193484 0.540995 0.653019 0.023993 0.043346 0.070837 0.153455 0.056554 0.068279 0.092593 0.176070 0.056299 0.099315
ISABELA 1.317624 1.320961 0.753668 0.822214 0.040577 0.050670 0.165369 0.135044 0.090183 0.071354 0.180530 0.133779 0.087297 0.107900
NUEVA VISCAYA 0.476826 0.534155 0.275094 0.337197 0.019708 0.032807 0.063934 0.046405 0.025570 0.022220 0.055392 0.055832 0.037128 0.039694
QUIRINO 0.131947 0.151212 0.081220 0.101423 0.004744 0.008660 0.015321 0.015076 0.008215 0.005196 0.013244 0.011094 0.009203 0.009763
REGION 3 10.514047 11.271387 5.600572 6.573380 0.331215 0.426791 1.431341 1.415271 0.804975 0.635079 1.546189 1.313004 0.799755 0.907862
BATAAN 0.959979 0.842250 0.521956 0.483453 0.027468 0.028347 0.122098 0.097237 0.062592 0.049770 0.150479 0.100747 0.075386 0.082696
BULACAN 3.139981 3.266856 1.644397 1.832589 0.096869 0.131915 0.426665 0.428069 0.248100 0.167693 0.497217 0.427541 0.226733 0.279049
NUEVA ECIJA 1.846088 2.179502 0.967291 1.327891 0.072192 0.090649 0.276593 0.229924 0.148538 0.118374 0.240084 0.224499 0.141390 0.188165
PAMPANGA 2.413494 2.886310 1.235071 1.723474 0.075427 0.099571 0.323274 0.354683 0.191043 0.167550 0.385032 0.326034 0.203647 0.214998
TARLAC 1.124976 1.100067 0.667699 0.630668 0.033831 0.045717 0.135507 0.156177 0.075645 0.062018 0.132757 0.117765 0.079537 0.087722
ZAMBALES 0.477338 0.541658 0.278769 0.323632 0.009655 0.017438 0.065322 0.072141 0.035265 0.036330 0.059713 0.060352 0.028614 0.031765
AURORA 0.185081 0.234245 0.106109 0.126995 0.007198 0.009346 0.018346 0.019382 0.012015 0.011929 0.024555 0.030874 0.016858 0.035719
OLONGAPO CITY 0.367110 0.454744 0.179280 0.251673 0.008575 0.013154 0.063536 0.077040 0.031777 0.033344 0.056352 0.056066 0.027590 0.023467
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Table 2a. Continued
PROVINCES
2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100
REGION 4A 14.648747 7.274781 0.429811 2.276158 1.061316 2.507638 1.099043
BATANGAS 2.385303 2.528764 1.187648 1.358943 0.077839 0.103762 0.384415 0.416682 0.173865 0.143566 0.379783 0.311276 0.181753 0.194535
CAVITE 3.333756 2.451400 1.699854 1.404374 0.089426 0.074142 0.498464 0.383813 0.247484 0.126919 0.553553 0.245948 0.244975 0.216204
LAGUNA 3.445892 3.221479 1.743549 1.734297 0.098143 0.115705 0.523810 0.435186 0.233200 0.173075 0.582848 0.505676 0.264342 0.257540
QUEZON 1.839219 1.983815 0.957536 1.120760 0.063984 0.096179 0.260599 0.258333 0.131404 0.102426 0.272871 0.235349 0.152825 0.170768
RIZAL 3.644577 1.691723 1.686194 0.920454 0.100419 0.049653 0.608870 0.284185 0.275363 0.109705 0.718583 0.189374 0.255148 0.138352
REGION 4B 1.959582 1.092059 0.074420 0.262635 0.121606 0.241224 0.167638
MARINDUQUE 0.176945 0.283278 0.107280 0.172117 0.005251 0.012800 0.019102 0.025279 0.010837 0.013201 0.019758 0.031288 0.014717 0.028593
MINDORO ORIENTAL 0.331603 0.451954 0.179987 0.251394 0.015460 0.025318 0.039405 0.040769 0.020358 0.018166 0.041751 0.053599 0.034642 0.062708
MINDORO OCC. 0.598220 0.749343 0.322067 0.412435 0.026768 0.039052 0.080545 0.098821 0.035991 0.038883 0.081610 0.090918 0.051239 0.069234
PALAWAN 0.691296 0.532244 0.382466 0.344626 0.023392 0.023174 0.104981 0.049269 0.044020 0.027654 0.081555 0.040994 0.054882 0.046527
ROMBLON 0.161518 0.128569 0.100259 0.082830 0.003549 0.006078 0.018602 0.010115 0.010400 0.007225 0.016550 0.011142 0.012158 0.011179
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Table 2a. Continued
PROVINCES
2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100
REGION 5 4.654932 4.718745 2.650751 2.876643 0.133940 0.169152 0.584860 0.476637 0.303353 0.280538 0.620521 0.529709 0.361507 0.386066
ALBAY 1.133852 1.192639 0.601743 0.714484 0.036987 0.040776 0.161919 0.119151 0.067844 0.065043 0.176601 0.146413 0.088758 0.106772
CAMARINES NORTE 0.424396 0.444679 0.227382 0.260068 0.014433 0.020674 0.058651 0.042045 0.032759 0.028203 0.057845 0.052983 0.033326 0.040706
CAMARINES SUR 1.364796 1.647761 0.744130 0.983853 0.040193 0.061012 0.181966 0.164345 0.093219 0.102471 0.204787 0.202062 0.100501 0.134018
CATANDUANES 0.204025 0.220701 0.102493 0.136034 0.005433 0.008791 0.034288 0.028724 0.012476 0.012731 0.031363 0.016645 0.017972 0.017776
MASBATE 1.007129 0.538119 0.655994 0.344792 0.024213 0.015963 0.091467 0.058000 0.061199 0.034148 0.089563 0.044002 0.084693 0.041214
SORSOGON 0.520734 0.674846 0.319009 0.437412 0.012681 0.021936 0.056569 0.064372 0.035856 0.037942 0.060362 0.067604 0.036257 0.045580
REGION 6 6.319246 7.630737 3.399905 4.412558 0.218271 0.312344 0.842789 0.882632 0.425568 0.406913 0.925253 0.886453 0.507460 0.729837
AKLAN 0.424926 0.542323 0.230307 0.319190 0.016459 0.027785 0.054438 0.038909 0.028302 0.023248 0.057146 0.072068 0.038274 0.061123
ANTIQUE 0.409366 0.457084 0.234857 0.309007 0.016150 0.015118 0.038521 0.038811 0.027388 0.023317 0.054690 0.039748 0.037760 0.031083
CAPIZ 0.611112 0.616953 0.319221 0.397028 0.025475 0.020652 0.084432 0.062843 0.042145 0.033902 0.089852 0.058396 0.049987 0.044132
ILOILO 1.441829 1.787536 0.803328 1.046748 0.046956 0.074185 0.169813 0.209287 0.105308 0.104400 0.204065 0.164788 0.112359 0.188128
NEGROS OCC. 1.641054 2.602521 1.012288 1.636864 0.049441 0.107615 0.179954 0.251680 0.112388 0.137348 0.172532 0.249989 0.114451 0.219025
BACOLOD CITY 0.747352 0.708925 0.351289 0.340384 0.026630 0.033693 0.117528 0.129705 0.046184 0.034810 0.144158 0.108461 0.061563 0.061872
ILOILO CITY 0.920070 0.915395 0.375875 0.363337 0.031915 0.033296 0.184480 0.151397 0.055768 0.049888 0.188442 0.193003 0.083590 0.124474
GUIMARAS 0.123537 0.072740 0.005245 0.013623 0.008085 0.014368 0.009476
16
Table 2a. Continued
REGIONS/ ALL ITEMS FBT CLOTHING HOUSING & FUEL LIGHT & SERVICES MISCELLANEOUS
PROVINCES REPAIRS WATER
2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100
REGION 7 5.152319 5.232211 2.832169 3.117316 0.130229 0.157824 0.758357 0.744388 0.343474 0.279441 0.725839 0.539959 0.362251 0.393283
BOHOL 0.733810 0.634253 0.422781 0.410920 0.019031 0.017757 0.074338 0.061582 0.062245 0.036854 0.104306 0.054651 0.051109 0.052489
CEBU 2.351429 2.201338 1.322385 1.374262 0.054222 0.064628 0.336440 0.273028 0.145871 0.115820 0.332319 0.212086 0.160192 0.161514
NEGROS ORIENTAL 0.877690 1.018064 0.515004 0.639789 0.030152 0.035723 0.097722 0.118962 0.053448 0.044109 0.109746 0.098196 0.071618 0.081285
SIQUIJOR 0.049417 0.052460 0.028860 0.034987 0.001742 0.001777 0.003918 0.007525 0.003232 0.002972 0.007212 0.003458 0.004453 0.001741
CEBU CITY 1.139973 1.326096 0.543139 0.657358 0.025082 0.037939 0.245939 0.283291 0.078678 0.079686 0.172256 0.171568 0.074879 0.096254
REGION 8 2.841040 3.035097 1.635027 2.065710 0.068213 0.085758 0.365746 0.253818 0.193698 0.186543 0.352263 0.223949 0.226093 0.219319
EASTERN SAMAR 0.246966 0.371387 0.157053 0.238291 0.005912 0.012235 0.022688 0.034751 0.015726 0.023536 0.026789 0.030491 0.018798 0.032083
LEYTE 1.476637 1.478527 0.798222 0.993356 0.033301 0.040720 0.203328 0.133808 0.094567 0.092774 0.223439 0.113588 0.123780 0.104281
BILIRAN 0.091342 0.053610 0.002397 0.014564 0.006453 0.007763 0.006555
NORTHERN SAMAR 0.303477 0.435891 0.186459 0.303691 0.006810 0.012941 0.041111 0.029835 0.022250 0.026223 0.027363 0.032632 0.019484 0.030569
WESTERN SAMAR 0.449800 0.434267 0.279180 0.324219 0.010629 0.010918 0.052389 0.023158 0.036797 0.024661 0.036245 0.024645 0.034560 0.026666
SOUTHERN LEYTE 0.272818 0.315025 0.160503 0.206153 0.009164 0.008944 0.031666 0.032266 0.017905 0.019349 0.030664 0.022593 0.022916 0.025720
17
Table 2a. Continued
2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100
REGION 9 2.137861 2.586068 1.256314 1.614150 0.065980 0.101943 0.254248 0.210093 0.135604 0.130268 0.260826 0.250755 0.164889 0.278859
ZAMBOANGA DEL NORTE 0.592652 0.617319 0.341850 0.383728 0.019309 0.023551 0.060509 0.040834 0.035897 0.027323 0.083396 0.059254 0.051691 0.082629
ZAMBOANGA DEL SUR 0.844713 1.074991 0.516601 0.685189 0.026255 0.047566 0.115494 0.064103 0.046982 0.051942 0.083068 0.113991 0.056313 0.112200
ZAMBOANGA CITY 0.700496 0.661768 0.397863 0.392709 0.020416 0.023953 0.078245 0.075221 0.052725 0.039624 0.094362 0.063225 0.056885 0.067036
REGION 10
3.138435 2.632444 1.700647 1.550344 0.115624 0.109147 0.402682 0.297298 0.223837 0.145230 0.435084 0.266396 0.260561 0.264029
BUKIDNON 0.854478 0.801249 0.497248 0.500969 0.039440 0.041366 0.080678 0.064589 0.057470 0.045743 0.098555 0.074729 0.081087 0.073853
CAMIGUIN 0.058248 0.039622 0.032776 0.027897 0.001846 0.000658 0.007057 0.002868 0.004506 0.003430 0.007330 0.001750 0.004733 0.003019
LANAO DEL NORTE 0.658759 0.669077 0.339775 0.403194 0.019819 0.026764 0.089910 0.063267 0.041057 0.028905 0.107453 0.072462 0.060745 0.074485
MISAMIS OCCIDENTAL 0.340130 0.490129 0.194527 0.291100 0.009792 0.022016 0.042668 0.043309 0.027712 0.026378 0.041139 0.057350 0.024292 0.049976
MISAMIS ORIENTAL 0.483330 1.301444 0.281554 0.730378 0.016299 0.045107 0.060779 0.186532 0.033455 0.069679 0.054574 0.132567 0.036669 0.137181
CAGAYAN DE ORO CITY 0.743490 0.354767 0.028428 0.121590 0.059637 0.126033 0.053035
18
Table 2a. Continued
2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100
REGION 11 3.627178 5.456760 1.938508 3.147303 0.129126 0.245477 0.461153 0.527616 0.226550 0.238273 0.559092 0.662704 0.312749 0.635387
DAVAO DEL NORTE 1.118280 1.082005 0.634252 0.678962 0.044841 0.036942 0.114626 0.073933 0.076305 0.045610 0.144471 0.097888 0.103785 0.148670
DAVAO DEL SUR 0.529265 0.607589 0.316327 0.395034 0.016554 0.031788 0.053169 0.042737 0.028225 0.026740 0.069146 0.042699 0.045844 0.068591
DAVAO ORIENTAL 0.347286 0.354347 0.186703 0.234387 0.011957 0.013901 0.040497 0.021207 0.020799 0.018557 0.049465 0.035054 0.037865 0.031241
DAVAO CITY 1.632347 2.081824 0.801226 1.029953 0.055774 0.100602 0.252861 0.255338 0.101221 0.092716 0.296010 0.346426 0.125255 0.256789
REGION 12 2.893063 2.315110 1.630850 1.374640 0.112134 0.108342 0.306928 0.208592 0.186023 0.117518 0.390392 0.269327 0.266736 0.236691
NORTH COTABATO 0.746572 0.815556 0.467414 0.496816 0.030723 0.044353 0.057194 0.065893 0.049001 0.038456 0.079748 0.092312 0.062492 0.077726
SOUTH COTABATO 0.728119 1.007101 0.382790 0.628947 0.027522 0.047777 0.087238 0.088612 0.044173 0.041515 0.113620 0.100649 0.072776 0.099601
SULTAN KUDARAT 0.411110 0.495706 0.249700 0.299856 0.014914 0.023857 0.034517 0.033180 0.029366 0.027683 0.049436 0.060291 0.033177 0.050839
COTABATO CITY 0.191406 0.248795 0.095849 0.128308 0.007011 0.009710 0.026897 0.034370 0.015178 0.016858 0.031128 0.035476 0.015343 0.024073
GEN. SANTOS CITY 0.540044 0.323894 0.270754 0.180020 0.018905 0.014467 0.075341 0.045789 0.028566 0.013135 0.089818 0.039988 0.056660 0.030495
SARANGANI 0.275812 0.164343 0.013059 0.025741 0.019739 0.026642 0.026288
19
Table 2a. Continued
2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100 2000=100 1994=100
Caraga 1.585601 1.971747 0.928284 1.235655 0.053965 0.085349 0.165716 0.170617 0.106827 0.087949 0.189947 0.179526 0.140862 0.212651
AGUSAN DEL NORTE 0.483574 72.016965 0.266942 42.382016 0.013792 2.814172 0.061086 8.418379 0.030653 3.897533 0.067679 8.079515 0.043422 6.425350
AGUSAN DEL SUR 0.361575 0.334826 0.221494 0.211297 0.016591 0.019139 0.029056 0.022604 0.027194 0.016219 0.035246 0.030653 0.031994 0.034914
SURIGAO DEL NORTE 0.345100 0.463209 0.203129 0.306739 0.009442 0.016931 0.041732 0.048365 0.024002 0.022612 0.039829 0.032032 0.026966 0.036530
SURIGAO DEL SUR 0.395352 0.670319 0.236719 0.398764 0.014140 0.031036 0.033842 0.054057 0.024978 0.025664 0.047193 0.071572 0.038480 0.089226
ARMM 1.748729 1.508109 1.106256 0.971002 0.063339 0.056306 0.185260 0.124547 0.108357 0.074047 0.125049 0.108958 0.160468 0.173249
BASILAN 0.189981 0.231990 0.123215 0.152524 0.007140 0.006873 0.019630 0.029935 0.009702 0.011379 0.014329 0.014285 0.015965 0.016994
LANAO DEL SUR 0.374758 0.383187 0.215267 0.215930 0.017531 0.020066 0.055617 0.034737 0.024680 0.020901 0.021494 0.025469 0.040169 0.066084
MAGUINDANAO 0.527940 0.509130 0.332886 0.339310 0.019103 0.022413 0.048430 0.030431 0.030794 0.020738 0.049710 0.042650 0.047017 0.053588
SULU 0.382927 0.329190 0.270068 0.233719 0.009832 0.006801 0.027332 0.025240 0.025058 0.019848 0.020980 0.018770 0.029657 0.024812
TAWI-TAWI 0.185601 0.286602 0.113505 0.182043 0.007134 0.007026 0.019103 0.034139 0.010977 0.012560 0.013938 0.022069 0.020944 0.028765
MARAWI CITY 0.087522 0.085976 0.051315 0.046466 0.002599 0.003658 0.015148 0.011882 0.007146 0.005616 0.004598 0.008786 0.006716 0.009568
20
1.3.4. Formula Used in Computing CPI
The formula used in computing the CPI is the weighted arithmetic mean of
price relatives, a variant of the Laspeyres formula with fixed base year period weights.
In computing the CPI, the formula is
sum [(Pn/Po)W)]
CPI = ------------------------- * 100
sum(W)
where:
Pn = current price
Po = base period price
W = PoQo = weights
The steps in constructing the CPI are shown below using the data for Pangasinan for
February 2002:
Step 1. Get the average price of an item with the 7-digit commodity code from the
results of phases I & II price surveys. Note that there are six price quotations
(one each from six outlets) for Phase I and two price quotations from two
outlets for Phase II. The two price quotations of Phase II are taken from the
same two outlets of Phase I.
14 FISH PHASE I PHASE II
1 2 3 4 5 6 1 2
Canned Fish
1411129 Canned Mackerel, Hokaddo, 425 g. 22.50 21.25 23.50 23.50 22.25 21.00 22.00 21.75
1411135 Canned Mackerel, Hokkaido, 215 g. 10.39 10.75 13.18 14.00 12.62 13.00 10.39 10.75
1411140 Canned Mackerel, Ligo, 215 g. 10.40 10.42 12.36 10.50 15.05 10.40 10.42
1411160 Canned Sardines, 555, 155 g. 8.00 8.50 8.50 8.00 8.05 7.75 8.00 8.50
1411196 Canned Sardines, Youngs Town, 155 g 8.50 8.55 8.50 8.60 8.40 8.50 8.50 8.55
1411205 Canned Squid, Saba, 155 g. 11.00 11.40 11.50 11.55 12.00 11.00 11.40
21
14 FISH PHASE I PHASE II
1 2 3 4 5 6 1 2
1411212 Canned Squid, Youngs Town, 155 g. 10.75 10.65 11.50 10.25 10.50 11.50 10.75 10.65
1411217 Canned Tuna, Century, 184 g. 22.59 22.44 23.00 24.02 22.23 23.92 22.59 22.44
Dried & Smoked Fish and Fish Extracts
1421112 Daing, Bisugo, med., kg. 90.00 90.00 95.00 120.00 90.00 95.00 85.00
1421149 Dried Fish, Dilis, med., kg. 100.00 100.00 150.00 100.00 150.00 120.00 100.00 100.00
1421170 Dried Fish, Tunsoy, med., kg. 90.00 90.00 100.00 85.00 90.00 90.00 90.00
1421182 Smoked Fish, Galunggong, Tumpok 20.00 20.00 15.00 20.00 15.00 20.00 19.50 20.50
1441125 Bagoong, Alamang, Leche 10.00 10.00 12.00 10.00 10.00 12.00 10.00 10.00
1441129 Bagoong, Dilis, 14 oz 7.00 7.00 7.00 8.00 6.00 12.00 7.00 7.00
1441147 Bagoong, Isda, Ganta (2.4 kgs) 7.00 7.00 7.00 7.00 13.00 12.00 7.00 7.00
Fish Shrimps, Crabs, etc.
1431118 Fresh Fish, Bangus, kg. 90.00 100.00 80.00 75.00 90.00 90.00 95.00 95.00
1431141 Fresh Fish, Dalagang Bukid, kg. 100.00 130.00 90.00 90.00 95.00 110.00 120.00
1431145 Fresh Fish, Dalag, med., kg. 26.67 30.00 33.33 25.00 50.00 30.00 26.67 30.00
1431148 Fresh Fish, Dilis, kg. 70.00 80.00 50.00 65.00 80.00 80.00 70.00
1431153 Fresh Fish, Galunggong, kg. 60.00 80.00 60.00 60.00 65.00 70.00 60.00 80.00
1431160 Fresh Fish, Hito, kg. 80.00 85.00 70.00 70.00 70.00 65.00 75.00 90.00
1431204 Fresh Fish, Tambakol, kg. 60.00 60.00 50.00 60.00 60.00 60.00
1431209 Fresh Fish, Tilapia, med., kg. 60.00 80.00 60.00 60.00 60.00 60.00 70.00 70.00
1432114 River Shrimps, kg. 200.00 200.00 200.00 180.00 320.00 200.00 200.00 200.00
1432133 Shrimps, Puti, kg. 400.00 450.00 180.00 180.00 250.00 250.00 400.00 450.00
1432135 Shrimps, Suaje, Endeavor Prawn, kg. 350.00 350.00 450.00 350.00 320.00 350.00 350.00
1433112 Crabs, Alimango, kg. 300.00 350.00 200.00 300.00 250.00 200.00 300.00 350.00
1433115 Crabs, Alimasag, kg. 100.00 150.00 90.00 90.00 100.00 80.00 125.00 125.00
1434129 Clams, Kuhol, kg. 30.00 40.00 10.00 5.00 8.00 30.00 40.00
1434136 Green Mussels, kg. 25.00 30.00 20.00 25.00 20.00 30.00 25.00 30.00
1434 161 Talaba, Glass 20.00 25.00 10.00 12.00 15.00 13.00 25.00 20.00
22
To get the average price for outlets 1 and 2 of code 1411129:
outlet 11 + outlet 12 22.50 + 22.00

outlet 1 = = = 22.25
2 2
outlet 21 + outlet 22 21.25 + 21.75

outlet 2 = = = 21.50
2 2
Average price of code 1411129, Feb. 2002
Ave. of outlet 1 + Ave. of outlet 2 + 3 + 4 + 5 + 6

=
6
22.25 + 21.50 + 23.50 + 23.50 + 22.25 + 21.00

=
6
134.00
=
6
= 22.33
The same procedure is followed in getting the average price of the other commodities.
Step 2. The price relative (PR) is computed for each of these 7-digit commodity
groups. The relative is the simplest form of an index number.
current average price

PR = x 100
base year average price
22.33
For commodity code 1411129 : PR = x 100
17.31
= 129.00
Step 3. The index of 4-digit group is the simple average of the price relatives
belonging to that group.
23
n
PR
I 4 digit = 11
I4-digit = index of the 4-digit group

PR = price relative of the 7-digit group
n = no. of commodities under the 4-digit group
Example: 1411: Canned fish in oil or in sauce ------- 146.03
PR
1411 = 132.68
1411129 = (22.33/17.31) x 100 = 129.00
1411135 = (12.32/9.12) x 100 = 135.09
1411140 = (11.75/7.92) x 100 = 148.36
1411160 = (8.13/6.24) x 100 = 130.29
1411196 = (8.51/6.61) x 100 = 128.74
1411205 = (11.49/9.01) x 100 = 127.52
1411212 = (10.86/9.13) x 100 = 118.95
1411217 = (23.03/16.05) x 100 = 143.49
For 1421: Dried and /or Smoked Fish
1421 = 177.14
1421112 = (97.00/63.47) x 100 = 152.83
1421149 = (120.00/62.07) x 100 = 193.33
1421170 = (91.00/57.74) x 100 = 157.60
1421182 = (18.33/8.95) x 100 = 204.80
For 1431:
1431 = 156.37
1431118 = (87.50/70.07) x 100 = 124.88
1431141 = (101.00/55.00) x 100 = 183.64
1431145 = (32.50/20.63) x 100 = 157.54
1431148 = (69.00/41.06) x 100 = 168.05
1311153 = (65.83/29.03) x 100 = 226.77
24
1431160 = (73.33/55.00) x 100 = 133.33
1431204 = (57.50/45.00) x 100 = 127.78
1431209 = (63.33/49.12) x 100 = 128.93
For 1432
1432 = 188.27
1432114 = (216.67/137.50) x 100 = 157.58
1432133 = (285.00/163.44) x 100 = 174.38
1432135 = (364.00/156.32) x 100 = 232.86
For 1433
1433 = 176.67
1433112 = (266.67/125.33) x 100 = 212.77
1433115 = (101.67/72.33) x 100 = 140.56
For 1434
1434 = 218.31
1434129 = (18.60/5.33) x 100 = 348.97
1434136 = (25.00/20.88) x 100 = 119.73
1434161 = (15.83/8.50) x 100 = 186.24
For 1441
1441 = 151.56
1441125 = (10.67/10.00) x 100 = 106.70
1441129 = (7.83/6.38) x 100 = 122.73
1441147 = (8.83/3.92) x 100 = 225.26
25
Step 4. The index for the three-digit group is the weighted average of the 4-digit
group index belonging to that group.
I 4 -digit W4 digit
I 3 digit = i =1
n
W
i =1
4 digit
I3-digit = index of 3-digit group

W4-digit = weight of the 4-digit group
To get the index for 141 (Canned fish)
Since there is only one 4-digit group, 1411 in this 3-digit group, the index of the said 4-
digit group is automatically the index of the 3-digit group
I141 ----------------------- 132.68

I1411 ----------------------- 132.68
To get the index of 142 (Dried, Smoked Fish)
For the same reason as in 141 the index of 1421 is the index of 142
I142 ----------------------- 177.14

I1421 ----------------------- 177.14
To get the index of 143 (Fresh fish)
I 1431W1431 + I 1432W1432 + I 1433W1433 + I 1434W1434

I 143 =
W1431 + W1432 + W1433 + W1434
156.37(0.029369) + 188.27(0.029370) + 176.67(0.029370) + 218.31(0.029370)

I 143 =
0.029369 + 0.029370 + 0.029370 + 0.029370
I 143 = 184.91
26
To get the index of 144
Since there is only one 4-digit group in this 3-digit group, the index of the said
4-digit group is automatically the index of the 3-digit group.
I 144 = 151.56
I 1441 = 151.56
Step 5. The index for 2-digit group is the weighted average of the 3-digit group index
belonging to that group. It is computed using the formula.
I 3 digit W3 digit
I 2 digit = i =1
n
W
i =1
3 digit

To compute for the index of code 14 (Fish)
I 141W141 + I 142W142 + I 143W143 + I 144W144

I 14 =
W141 + W142 + W143 + W144
132.68(0.014705) + 177.14(0.020160) + 184.91(0.117491) + 151.56(0.012680)

I 14 =
0.014705 + 0.020160 + 0.117491 + 0.012680
I 14 = 176.74
The preceding procedure is followed in computing for the other two-digit

groups index.
27
Step 6. To compute for the index of the one-digit group:
I 2 digit W2 digit
I 1digit = i =1
n
W
i =1
2 digit
I1-digit = index of one-digit group

I2-digit = index of 2-digit group belonging to this 1-digit group
( I 11W11 + I 12W12 + I 13W13 + I 14W14 + I 15W15

+ I W16 + I 17W17 + I 18W18 + I 19W19 )
I 1 (Food, Bev. & Tobacco) = 16
(W11 + W12 + W13 + ... + W19 )
I 2 (Clothing) =
(I W + I W + I
21 21 22 22 23 W23 )
(W + W + W 21 22 23 )
I 3 (Housing & Repairs) =

(I W 31 31 + I 32W32 )
(W 31 + W32 )
I 4 (Fuel, light & Water) =

(I W + I W + I
41 41 42 42 43 W43 )
(W + W + W 41 42 43 )
I 5 (Services) =
(I W51 + I 52W52 + I 53W53 + I 54W54 + I 55W55 + I 56W56 )
51
(W 51 + W52 + W53 + W54 + W55 + W56 )
I 6 (Miscellaneous) =
(I 61W61 + I 62W62 + I 63W63 + I 64W64 )
(W 61 + W62 + W63 + W64 )
28
Example:
I cereal & cereal preparations x W cereal & cereal preparations

+ I dairy products x W dairy products + I eggs x W eggs + I fish x W fish
+ I fruits & vegetables x W fruits & vegetables + I meat x W meat
+ I misc. foods x W misc. foods + I beverages x W beverages + I tobacco x W tobacco
I 1 (FBT) =
W cereal & cereal prep. + W dairy prods. + W eggs + W fish +
W fruits & vegs. + W meat + W misc. foods + W beverages + W tobacco
152.04(0.516645) + 163.31(0.63143) + 146.78(0.031303) +

176.74(0.165024) + 165.70(0.138453) + 130.80(0.148989) +
157.74(0.259243) + 132.91(0.055648) + 141.12(0.36481)
=
0.516645 + 0.063143 + 0.031303 + 0.165024 + 0.138453 + 0.148989 + 0.259243 + 0.055648 + 0.036481
The above procedure is followed for computing 1-digit indexes using the
preceding formula for I2, I3, I4, I5, & I6.
Step 7:
To compute for the All Items index: This is computed by getting the weighted
average indexes of the six major groups items (m). The six major groups are:
1. Food Beverages and Tobacco

2. Clothing
3. Housing and Repairs
4. Fuel, Light and Water
5. Services
6. Miscellaneous
I Wm
m
I all items = i =1
6
W m
m
Im = index of the major commodity group (one-digit group)

Wm = weight of the major group (one-digit group)
29
I 1W1 + I 2W2 + I 3W3 + I 4W4 + I 5W5 + I 6W6
I (all items ) =
W1 + W2 + W3 + W4 + W5 + W6 = Wall items
I FBT WFBT + I clothing Wclothing + I H & RW H & R + I FLW W FLW + I servicesWservices + I misc.Wmisc.
=
WFBT + Wclothing + WH & R + WFLW + Wservices + Wmisc
153.32 + (1.414929) + 177.27(0.989342) + 185.66(0.243693)

+ 145.15(0.154211) + 216.56(0.311075) + 138.58(0.184056)
=
0.414929 + 0.989342 + 0.243693 + 0.154211 + 0.311075 + 0.184056
= 163.17
Step 8. To compute the regional index, the weighted average of provincial indexes is
computed.
I Ilo cos Norte x WIlo cos Norte + I Ilo cos Sur xWIlo cos Sur + I LaUnion xWLaUnion + I Panga sin an xWPanga sin an
I Reg.1 =
WIlo cos Norte + WIlo cos Sur + WLaUnion + WPanga sin an
162.51(0.597588) + 149.06(0.685326) + 164.11(0.794688) + 163.17(2.404271)

=
0.597588 + 0.685326 + 0.794688 + 2.404271
= 161.09
Step 9. The national index is the weighted average of all the regional indexes.
I R1WR1 + I R 2WR 2 . . . . I ARMM W ARMM

In =
WR1 + WR 2 . . . . W ARMM = 100
In = national index
IR1 = index of region 1 . . . . ARMM
WR1 = weight of region 1 . . . . ARMM
30
1.4. Important Indicators Derived from the CPI
1.4.1. Inflation Rate
Former Central Bank Governor Jose L. Cuisia, Jr. urged both monetary and
fiscal authorities to put their acts together to bring down the inflation rate, warning
that, otherwise it will exact a heavy toll on the macroeconomic variables. A low
inflation regime was essential in achieving sustainable economic growth.
- The Manila Bulletin

March 24, 1994
What is inflation rate and why is it important?
Inflation rate is defined as the annual rate of change or the year-to year change
in the CPI.
That is,
CPI2 CPI1
IR=------------------x 100
CPI1
where CPI2 is CPI in the second period

CPI1 is the CPI in the previous period
Example: What is the inflation rate in 1993?
Given: CPI(1993) = 178.2
CPI(1992) =165.6
178.2
IR = 1 100% = 7.6%
165.6
31
Interpretation:
Average price level of consumer goods and services increased by 7.6 percent
in 1993 from its previous years level.
Note that inflation rate can be computed using other price indexes but the most
widely and more appropriately used is the CPI, which among the different indices has
the widest coverage, the consumer being the last stage in the flow of goods and
services.
Inflation is equivalent to the decline in the internal purchasing power of the

peso. As prices increases, more money will be needed to buy same amount of goods
and services.
While inflation is a term used to mean the

Inflation
25 Rate
general upward trend in prices, deflation refers to a
20
situation where the general level of prices is falling.
15
However, if the rate of inflation is declining (that is, 10
the general level of prices is increasing but at a 5
decreasing rate), we refer to the situation as 0

85 86 87 88 89 90 91 92 93
disinflation. -5
A chart on the right shows these three situations. Deflation occurred in 1986
with an inflation rate of -0.6. Then, inflation occurred from 1986 to 1991, where
inflation rate rose to 18.5 percent by 1991, while the situation between 1991 and 1993
is called disinflation. Prices were increasing, as shown by the positive rates, but at a
decreasing pace.
32
1.4.2. Purchasing Power of Peso
Another important indicator computed using the CPI is the purchasing power of
the peso (PPP). As mentioned earlier, inflation causes the internal purchasing power
of money to drop. Purchasing power of the peso is a measure of the real value the
peso in a given period relative to a chosen reference period. It is computed by getting
the reciprocal of the CPI and multiplying the result by 100.
Purchasing Power (PPP) = (1/CPI) x 100
Example 1.
How much is the peso in 1994 worth in:
a) 1957
b) January 2003
To compute, the following formula is used:
1
PPP= ---------* 100
CPIj
where CPIj is the CPI in the jth period with 1994 as base year.
Answer:
a) In 1957, the purchasing power of the peso is 37.04, which means that what
can be bought with one peso in 1957 can be bought with P37.04 in 1994.
PPP =1/2.7 x 100

= 37.04
b) In January 2003, the purchasing power of the peso is 59 centavos, or one

peso in 1994 is worth 59 centavos in January 2003. Hence, the same
33
amount of goods that can be bought with 59 centavos in 1994 can be
bought with one peso in January 2003.
It can be observed that as price index goes up, the purchasing power or the
real value of the peso goes down.
Example 2.
Determine equivalent value of P111,000 (January 1997) in 1932.
To determine the equivalent peso value in one period to another period (with
both periods having the same base year, i.e., 1994 = 100), the formula below is used:
Value (i) Value (j)

----------- = ------------
CPI (i) CPI (j)
Hence, Value (1932) = CPI(1932)/CPI(1997)*111,000
However, available CPI data only started in 1957. So, the 1932 value cannot
be derived using the above formula because CPI(1932) is unknown.
One way of solving this is through the method known as EXTRAPOLATION.
1) First, the equivalent value of P111,000 in 1957 was determined using the equation
above.
CPI1957 (1994=100) = 2.7
CPI 1997 (1994 =100) = 124.7
CPI (57)
Value(57) = ------------* 111,000
CPI(97)
Value(57) = (2.7/124.7)*111,000 = P2,403.37
34
2) Assuming that the rate of increase of CPI between 1932 and 1957 is the same as
1957 - 1982 (An interval of 25 years).
CPI 1957 (1994 =100) = 2.7
CPI1982(1994 =100) = 24.3
Value(32) = (2.7/24.3) * Value(57)
= 0.1111* 2403.37 =P267.04
1.5. Deflating Time Series
Aside from economic indicators derived from CPI, it has another important
usethat is, as a deflator of economic variables.
Deflation is a process of adjusting current values by dividing them with CPI in

the corresponding period to express the values in real terms or base year peso value.
The formula is:
Real Value = (Nominal Value/CPI)x100
Example 1:
Table 3. AVERAGE MONTHLY EARNINGS OF PAID EMPLOYEES BY

MAJOR INDUSTRY GROUP, PHILIPPINES: 1989-1992
(Value in Pesos)
MAJOR INDUSTRY 1989 1990 1991 1992

GROUP NOMINAL REAL NOMINAL REAL NOMINAL REAL NOMINAL REAL
ALL 3,592 6,057 4,398 6,554 NA - NA -
AGRICULTURE,
FORESTRY & 2,286 3,855 2,882 4,295 NA - NA -
FISHERY
NON-AGRICULTURAL 3,689 6,221 4,508 6,718 4,618 5,809 5,126 5,940
MINING &QUARRYING 3,936 6,637 4,375 6,520 5,119 6,439 6,091 7,058
MANUFACTURING 3,441 5,803 4,087 6,091 4,005 5,038 4,286 4,966
35
Table 3. Continued
MAJOR INDUSTRY 1989 1990 1991 1992

GROUP NOMINAL REAL NOMINAL REAL NOMINAL REAL NOMINAL REAL
ELECTRICITY, GAS & 5,861 9,884 6,771 10,091 6,568 8,262 8,735 10,122
WATER
CONSTRUCTION 2,539 4,282 3,049 4,544 3,323 4,180 3,589 4,159
WHOLESALE &
RETAIL TRADE 3,651 6,157 4,101 6,112 4,511 5,674 5,007 5,802
TRANSPORTATION,
COMM. &STORAGE 5,395 9,098 6,101 9,092 7,077 8,902 8,280 9,594
FINANCING,
INSURANCE,
REAL ESTATE & 5,158 8,698 6,023 8,976 6,509 8,187 6,965 8,071
BUSINESS SVCS
COMMUNITY, SOCIAL
& PERSONAL SVCS 2,943 4,963 4,041 6,022 5,011 6,303 5,462 6,329
Note: Nominal earnings are monthly equivalent of annual earnings derived from ANNUAL SURVEY OF
ESTABLISHMENTS
Source: National Statistics Office
Nominal earnings are the actual peso value received by workers. Real
earnings, on the other hand, are the equivalent 1994 peso value of what they
received. So, the P4,286 monthly earnings received by a manufacturing employee on
the average in 1992 is equivalent to P4,966 (P4,286/86.3 x 100) assuming that prices
have remained the same as in 1994. Thus, in nominal terms, average earnings in
1992 of manufacturing workers increased from 1989 by 24.6 percent but in real terms,
it decreased by 14.4 percent.
Example 2:
Given the monthly compensation of a Statistician II from 1994 to 2001. Has the
statisticians compensation increased in real terms?
36
Average Monthly Compensation of Statistician II: 1994 -2001
(Value in Pesos)
YEAR AVE. MONTHLY % INCREASE REAL % INCREASE
COMPENSATION COMPENSATION
1994 5,163 15.68 5,163 6.78
1995 6,163 19.37 5,706 10.53
1996 7,737 25.54 6,568 15.10
1997 11,515 48.83 9,234 40.60
1998 11,515 - 8,417 (8.85)
1999 11,515 - 7,892 (6.24)
2000 12,667 10.00 8,317 5.38
2001 13,300 5.00 8,230 (1.05)
This means that the compensation of a Statistician II in nominal terms has

increased from 1994 onwards. However, increases in average prices for years 1998,
1999 and 2001 outpaced the increases in compensation resulting to lower real
compensation as compared to 1994. And so, assuming that the Statistician II purchases
the same commodities (same brand and quality), he will be purchasing lesser amount
or quantity than he used to in 1994.
Expressing values in real terms is the same as saying that the values are
expressed at constant base year (e.g. 1994) prices.
1.6. Splicing
Earlier, it was mentioned that CPI has undergone several rebasing. It would
therefore be wrong to compare indices with different base years. Thus, in order to be
comparable, one must first establish a continuous series.
Splicing is a method used to combine two or more overlapping series of index

numbers into one continuous series. The method is simply a problem of finding the
unknown using ratio and proportion.
37
Example: Suppose you want to have a continuous series from 1988 to 1993.
However, the current series starts with 1994, i.e., 1994 = 100, while
previous series (1987 and earlier) has 1988 as base.
YEAR CPI CPI CONTINUOUS SERIES

(1988=100) (1994=100) (1988=100) (1994=100)
1991 152.0 X1 152.0 78.2
1992 165.6 X2 165.6 85.2
1993 178.2 X3 178.2 91.7
1994 194.3 100.0 194.3 100.0
1995 210.0 108.0 210.0 108.0
1996 227.6 117.8 227.6 117.8
1997 239.1 124.7 239.1 124.7
1998 260.6 136.8 260.6 136.8
1999 Y1 145.9 277.9 145.9
2000 Y2 152.3 290.1 152.3
Solution:
xi a
=
c b
or
a
xi = c
b
So, letting xi = X3, c = 100.0, a=178.2, b=194.3
x3 178.2
=
100 194.3
X3 = 91.7
Note that this method assumes that the items in the market basket and the
weights in both series are the same. If they are not, the results are just approximates.
38
CHAPTER II
FIELD OPERATIONS
2.1. Collection of Prices
Agencies Responsible for the Collection of Prices
Collection of data for the CPI is done through the collective effort of the Bureau
of Agricultural Statistics (BAS) and the NSO. BAS collects price data for agricultural
commodities in NCR and in provincial capitals where there are BAS offices while NSO
collects prices for all other commodities in all other areas.
Data are collected from the sample outlets (outlets or establishments where
prices of commodities/services are collected or quoted) which were chosen using the
following criteria:
1. Popularity of an establishment along the line of goods to be priced this means

the sample outlet is publicly noted in the locality for selling goods included in
the CPI survey forms and the outlet is patronized by the large segment of the
population.
2. Consistency and completeness of stock
Consistency of stock the outlet has a constant, steady or regular stock of

commodities listed in the CPI survey forms as well as of those commodities of
the same kind and belonging to the same commodity.
Completeness of stock- the sample outlet carries in its stock many if not all of
the items included in the CPI survey forms relative to the other outlets in the
area.
39
3. Permanency of outlet the outlet to be chosen should be an established store
or stall in the market area. It should not be an ambulant or transient vendor.
4. Geographical location- the outlet should be in a convenient place and is

accessible to the majority if not all consumers in the area.
Except for FBT which is monitored on a weekly basis in NCR, price collection is
done twice a month to effectively monitor price changes. First collection phase is done
during the first five days of the month while the second phase is on the 15th to 17th day
of the month.
a. First Collection Phase Areas Outside the National Capital Region

(AONCR)
Prices for all commodities and cost of services must be taken from the same
establishments already selected as regular price outlets. Six (6) price quotations
are required for every commodity or service listed in the forms. In areas outside
NCR, two (2) of these six (6) price quotations are taken from the provincial
capital and the other four quotations from the sample municipalities.
b. Second Collection Phase AONCR
Only two (2) price quotations are required for every commodity or service listed
in the forms. These are taken from the provincial capital.
c. For selected cities, six (6) price quotations are required for every
commodity or service listed in the forms during the first and second
collection phases.
d. National Capital Region (NCR)
40
All unprocessed food items are priced every Tuesday of the reference week
while all processed food items, beverages and tobacco are priced every
Friday/Saturday of the reference week. Prices of non-food items are gathered
during the first five days of the month and on the 15th day of each month.
Special attention is given to the pricing of highly perishable goods, e.g., fresh
fish, vegetables and fruits. Prices of these goods are taken during the time of the
day when most housewives do their marketing, i.e., usually before 10:00 a.m., so
to attain a reasonable degree of consistency in pricing identical groups of items
in the market.
e. Special Items
Prices of some service items are gathered less frequently. School tuition fees are
taken twice a year, every beginning of the school semester (June or July and
October or November as the case may be).
Elementary and high school tuition fees account for the monthly/annual fees. The
entry is carried all through the succeeding months until the next school year.
College fees accounts for the per semester fees. The entry is carried through the
succeeding months until the next semester.
Items for personal, recreational, medical and other services are priced semi-
annually in NCR, monthly in the sample municipalities, and twice a month in the
provincial capitals.
Changes in transportation fares, once implemented, are immediately included in

the computation of CPI for NCR and included in the next survey round in areas
outside NCR if the implementation date falls after the survey period.
41
In the case of house rentals, the same addresses or the same housing unit
regardless of its occupants must be the source of data in every survey period. If
the structure does no longer exist or if it has ceased to be rented, an appropriate
substitute should be selected. Thus, if the sample house which is to be replaced
has only one bedroom then the replacement must also be a house with only one
(1) bedroom. The amount of rental paid monthly by the households must exclude
payments made on electricity and/or water. This survey of house rentals is done
monthly.
2.2. Survey Forms
The survey of retail prices of commodities and services utilizes the following
forms:
Prices Form 1-A - Survey of Retail Prices of Agricultural Food Items
Prices Form 1-B - Survey of Retail Prices of Processed Food Items,

Beverages and Tobacco
Prices Form 1-C - Survey of Retail Prices of Non-Food Items
Prices Form 1-D - Survey of Costs of Fuel, Light and Water, House
Rentals and Services
42
2.3. Instructions for Filling-Up the Price Survey Forms
Column for Commodity and Unit of Measure The list of commodities to be

priced is found in this column. The list includes the brand name, size and other
descriptions of the commodity. The specific commodity as described should be
priced. Indicate in the form any deviation from the description and unit required
due to substitution of a certain commodity. When the brand is not indicated in the
form but there is an instruction to specify the brand, specify this brand in the
form. The prices of this particular brand shall be quoted or shall be used as
further specification of the commodity in succeeding price surveys.
Manufactured goods can be identified through their labels which indicate

their brands, weight, contents, quality country of origin, etc. In pricing, emphasize
the complete specifications of the commodity being priced. Commodities may be
of the same brand, weight, size and origin but may differ in some other
specifications, say for example, ingredients which could be the cause for a
difference in price. Sardines, Mackerel, 15 oz. in tomato sauce has a different
price from Mackerel, 15 oz. natural oil.
Unprocessed agricultural products and marine products are more difficult

to price as these are sold in different weights and sizes; many of them are
classified into grades or varieties and they are less stable in prices owing to
seasonality, sources, perishability, etc. An example is milkfish or bangus.
Bangus comes from the different places, i.e., Bulacan, Malabon, Dagupan,
Visayas etc.. It has different sizes and it may be sold fresh or frozen in the
market. Each of these factors affects the price of bangus.
43
Banana is another type of commodity which comes in different varieties
such as lakatan, saba, bungulan, etc., and is classified as first class, second
class and third class aside from its distinction as ripe or unripe.
Unit of Measure This refers to the unit of measure at which a commodity is

customarily traded in the market. The unit of measure is used as the basis for
pricing for consistency and to prevent misunderstanding between the fieldman
and the respondent. This does not preclude the use of some other units of
measure if this can provide a better method in obtaining comparable price
quotations. The weight instead of number as a unit of measure for raw,
unprocessed items is more advantageous in the sense that it eliminates the bias
of irregular sizes and different weight of such items. However, the practice is not
extended to the items which are sorted into grades or classes since their
assortment already takes satisfactory cognizance of the non-uniformity of size
and weights.
See to it that the price of the commodity corresponds to the unit of

measures indicated in the form. If not, compute for the imputed price.
e.g. The commodity to be priced is All Purpose Flour, Gold Medal, 800 grams.
There is no available 800 grams stock; instead the following stocks are present:
200 grams - P5.00

400 grams - P10.10
600 grams - P15.50
If 200 grams is available, get the price of this item and compute for the
imputed price of 800 grams.
44
Solution:
let x = price of 800 grams
200 grams = 800 grams

P5.00 x
x = 800(P5.00) = P20.00
200
If 600 grams is available, again get the price and impute the price of 800
grams.
Solution:
Let x = price of 800 grams
600 grams = 800 grams

P15.50 x
X = 800(P15.50) = P20.67
600
The imputed price should be posted above the original price within
the same cell in the consolidated provincial survey forms.
Columns on Retail Price Retail Price as used here relates to the price at
which a commodity is sold on spot small quantities for consumption. It is
confined to transactions on cash basis in the market and excludes black-market
prices and prices of commodities which are on sale as in Christmas Sale,
Anniversary Sale, Summer Sale, etc.
There are eight columns under retail prices. The first column is for the
current months average price. The next six columns are for the six price
quotations taken during the current month and the last column is for the previous
months average price.
45
Prices may be collected through personal interview; mail inquiry;
telephone inquiry; personal observations which involve personal visit to the
stores to find and record the prices marked on the items; test purchase which
means buying an item for the purpose of checking the price, quality,
weight/volume for its contents; or through direct inquiry from the buyers of the
commodity. However, prices of some commodities are available from their price
tags. In the absence of price tag, inquire from the storekeeper the price of a
particular commodity listed in the form.
Report only the current retail price i.e., the prevailing selling or buying
price of the certain commodity in the market during the visit.
All commodities listed in the various forms which are available in the
locality should be priced.
2.4. Editing of Survey Forms
The reliability of the consumer price index to a very large extent, depends on the
reliability of the price data obtained during the survey. Immediate verification of
the reasonableness and reliability of prices of commodities and services in a
given area for a given month is therefore necessary. Hence, processing of price
survey forms must be done in the field where immediate verification of price data
from outlets could be undertaken.
The editing instructions are as follows:
1. Careful examination of price survey forms Examine carefully the price

survey form. Take note that the prices are entered on the same line with the
seven-digit commodity being priced. Cancel entries made opposite those with
one, two, three or four digit codes. Use red ballpen in editing the raw data
46
submitted by DSOs/SCOs/SRs. Consolidated reports for a province should be in
blue or black ink.
2. Comparison of item prices in different outlets Compare the prices of

commodity taken in different outlets. If there is an unusual price (either very high
or very low, e.g., 10% from the others in the group) collected in one of the six
outlets, examine closely if the error is due to:
Wrong placement of the decimal
Example:
Code Commodity Outlets

1 2 3 4 5 6
1131135 Bread Loaf, 250 gms 10.00 11.00 100.00 10.00 10.25 10.50
1131166 Pandesal 0.50 0.40 4.50 0.45 0.45 0.50
Note that the price of loaf bread in outlet 3 is written as 100.00. As it is

impossible for a loaf bread to have this price, the error is easily detected to be
the absence of a decimal point in the price. The correct price should be P10.00.
Similarly, the price of pandesal in outlet 3 is 4.50. Since the other prices are
0.50, 0.40, or 0.45, then it is assume that the price listed in outlet 3 for pandesal
is 0.45.
Difference in the unit of measure
47
Example:

1 2 3 4 5 6
1431148 Fresh Fish, Dilis, kg 57.00 40.00 6.00 55.00 50.15 55.00
1431153 Fresh Fish, Galunggong, 57.50 52.40 4.50 57.75 52.50 50.00
medium, kg.
A close examination of the price dilis and galunggong would reveal that the big
difference in the price of two kinds of fish in outlet 3 is not in the wrong placement
of decimal point nor in the differences of commodities being priced since the prices
in the other outlets are more or less on the same range. It is therefore presumed
that the error is in the difference of the unit of measure used. Outlet 3 might be
selling by the piece, heap or tumpok since the price of dilis and galunggong are
much lower than in the other outlets. In this case, verify the price data from the
outlet. If after verification, the price for outlet 3 is the actual price, a remark should
be written on the margins justifying the price(s).
Different commodity being priced
Example:
1 2 3 4 5 6
1171169 Sotanghon, local, kg. 50.00 52.00 98.00 51.50 53.00 52.00
The marked difference in the price of sotanghon in outlet 3 may be due to pricing
of different classes, grade or kind of commodity. The sotanghon being priced here
may have been an important one which is much dearer than the locally made
sotanghon. Since the sotanghon to be priced should be locally manufactured,
verify price from the outlet concerned.
48
3. Computation of the Arithmetic Average Price of a Commodity The
arithmetic average price is the simple average of the prices. It is the sum of all
the prices taken divided by the number of price quotations. If 6 price quotations
are taken, simply get the sum of the 6 prices and divide this by 6.
Example:
The prices quoted for a kilo of refined sugar are 24.00, 23.50, 23.65,
23.75, 23.50 and 24.00. The sum of all their prices divided by 6 is
= 24.00+23.50+23.65+23.75+23.50+24.00
6
142.40
= ------------ = 23.73
6
Transcribe this computed average price of the commodity on the current months
average column. The odd-even rule in rounding numbers should be followed.
4. Verification of Price Data Review the reasonableness and completeness of

price data and the accuracy in the computation of current average prices by
comparing the current outlet price of a commodity and current average price of a
commodity with its previous months price in the outlet and its previous months
average price. If there is a big difference in the two average prices, find out the
cause. Verify from the outlets where these prices were taken and write on the
survey form a remark or the necessary justification, of the marked differences in
the two months average prices of a commodity.
49
2.5. Problems in Retail Price Collection
Substitution of Items in the Market Basket
A situation arises when one or more specific items in the market basket
disappear in one or more outlets during the survey period, temporarily or
permanently. When this situation happens, several measures are done as follows:
1. Temporary disappearance (e.g., out of stock)
a) When the demand of a particular item becomes nil causing the retirement of its
stocks from the market, the last price quotation of the absent item is carried
unchanged until stock and its price is again available. This measure, however,
is done only if the item is not available within three (3) months. If after 3
months the item is still not available in a particular outlet but available in other
outlets, the price of the item is quoted from the nearest or other outlet chosen
using the criteria of outlet selection.
The substitute outlet for the lost item becomes permanent sample outlet (for
that particular item only) even though the lost item becomes available again in
the original sample outlet after the third month.
b) For items that disappear from the basket due to hoarding, late arrivals of stocks
or due to seasonality, the last available price quotation is also carried
unchanged until the item reappears.
The field personnel are instructed to indicate reason for disappearance.
2. Permanent disappearance
A disadvantage of the Laspeyres formula used in the computation of the CPI is

that base year quantities instead of current quantities are used and that the market
basket is not currently updated so that some of the items may no longer exist or
50
are no longer commonly bought due to technological change or changes in
consumer taste and fashion. The CPI suffers from this limitation. Hence, when
this situation happens, the following measures are taken.
a) If a certain specified item disappeared for more than three (3) months in the
municipality, get an appropriate substitute for that item only in that
municipality on the 4th month. For example, if Ligo, Sardines in tomato
sauce, 7.5 grams could not be found in any possible substitute outlets in the
area, get Hakata or 555 sardines in tomato sauce, 7.5 grams. Bear in mind
that substitution of commodity specifications should only take place on the
fourth month. However, the original specifications of that item which still
exists in other sample area should be maintained.
The overlap and linking method is used in the changed of representative

items that is usually connected with the changes in specifications. This is
done by a parallel price survey for this representative item (according to the
old and new specification) but only prices according to the old specification
are taken into account in the computation of the index. This usually takes
place in the fourth month. Prices collected according to the old specifications
are then replaced in the database by prices collected according to the new
specification. For the succeeding months, computation of index is based on
the prices collected according to the new specification.
51
The greater the number of possible substitutes to choose from, the more
difficult the problem of selecting the most appropriate substitute will be. The
following are the criteria in selecting the most appropriate substitute
commodity specifications:
1. Representativeness The substitute item to be chosen must be of the same

quality and of the same price level as the lost item.
2. Significance The substitute item must be popular with the buying public.
3. Consistency There must be a steady supply of the substitute item in the

market.
4. Availability of price quotation Prices of the item selected as a substitute can

be taken regularly.
One item may be more representative than another because of its similarity in
description of price level to the lost item, but it may hardly compare with the latter
in points of consistency of supply and availability of price quotations in the
market. The choice, therefore, is which among the possible substitutes satisfies
most of the above criteria.
If no appropriate specifications of an item (refers to brand, material and style of
the same or nearly the same quality as that of the disappeared item, unit of
measure, packaging, etc.) are available in the regular outlet or in any other
outlets within the locality to substitute for the lost item, the following imputation
procedure if followed.
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Example:
The item, cheese, Ques-O, 225 grams, disappeared from the market
(regular outlets and in any other outlets in the locality) for more than 3 months
and there is no possibility that it will reappear. Moreover, there is no available
appropriate specification of substitute commodity.
Assuming that the last price of Ques-O is P23.00 and the available
substitute, Kraft Cheddar cheese, 225, grams has a current price of P35.20. In
terms of quality, the two types of cheese are not comparable so that prices vary
significantly.
To impute the current price Ques-O, there is a need to collect the previous
price of Kraft Cheddar cheese. The growth rate of the price of Kraft Cheddar
cheese is computed using the current and previous months prices. The price of
Ques-O is then imputed as shown below:
May 1998 June 1998
Ques-O P23.00 ?
Kraft Cheddar cheese P35.00 P35.20
Growth rate of the price of P35.20 and P35.00
P35.20
Kraft Cheddar cheese = ------------- x 100= 0.57%
P35.00
Assuming that the price of all brands of cheeses increased by 0.57%; the price of
Ques-O for June is
= P23.00+0.57%(P23.00)
= P23.00+P0.13
= P23.13
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The same procedure is followed for imputing succeeding months prices.
The imputed price should be posted above the original price within the same cell
in the consolidated survey forms.
However, if no substitute item can be found, e.g., a telephone service no

longer available in the municipality, the price is maintained for three months.
Beginning with the fourth month, this item is marked not available in the survey
form.
b) If the brand is still present but the model has changed. The brand name is
still carried and the price of the new model is accepted as comparable to the
old one. Hence, in effect, the item specification has changed.
Proper care and judgment must be taken when substituting items in the
market basket. Injudicious substitution may cause distortion in the picture of the
situation. An abrupt change in price due to substitution (example, substituting
Adidas for Spartan) give a distorted picture of the price movement and thus may
have serious implications on policy making.
c) Abandoning of Outlets
Sample outlets are abandoned due to the following reasons:
1. Complete abandonment for the outlet that has closed shop. It will be
substituted by nearest outlet or other outlet chosen using the criteria in outlet
selection.
2. Outlet will not be completely abandoned but partly only (i.e., for specific items
only) if one or more sample items disappeared for more than three months or
permanently.
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2.6. Treatment of Specific Products
Cars
Expenditures for cars are included in the computation of CPI weights for
miscellaneous items. However, these items are not included in the collection of prices
for the CPI.
Transport and airfares
Changes in land and air transportation fares, once implemented are immediately
included in the computation of CPI in NCR and included in the next survey round in
areas outside NCR if the implementation date falls after the survey period.
Prices of gasoline products have been deregulated. However, when prices of

such products increase, those engaged in the transport sector demand for an increase
in land transportation fares. The petition for the increase in land transport fare is
submitted to a government regulatory office for a decision after a series of hearings
attended by the private and public sectors. The regulation applies to taxis, jeepneys
and non-air-conditioned buses.
Package holidays/Package tours
Package tours are included in the CPI weights for transportation and
communication. Price collection for purposes of the CPI excludes these items.
Telecommunication
Residential telephone rates are gathered monthly from fixed sample outlets.
Value Added Tax (VAT) is included in its monthly rate.
Government postage charges are regulated.
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The charge for internet surfing is priced twice a month in NCR and in the
provincial capitals and monthly in the sample municipalities.
Utilities
Electricity and water rates are collected once a month in NCR and sample
municipalities and twice a month in the provincial capitals.
Normally, taxes are already included in pricing commodities and services ( VAT and
service charges).
Package of Meals
Package of meals that include meals eaten outside the home are priced
monthly in NCR and sample municipalities and twice a month in the provincial
capitals.
Second-hand goods
Price collection for purposes of the CPI exclude items sold at second-hand
stores.
Durable goods bought on credit
Durable furniture and equipment whether bought in cash or on credit are priced
twice a month in NCR and in the provincial capitals and monthly in the sample
municipalities.
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Health
Items for medical and services are priced semi-annually in NCR, monthly in the
sample municipalities and twice a month in the provincial capitals.
Education
School tuition is taken twice a year, every beginning of the school semester
(June or July and October or November as the case may be).
Elementary and high school tuition fees account for the monthly/annual fees.
The entry is carried all through the succeeding months until the next school year.
College fees account for the per semester fees. The entry is carried through the
succeeding months until the next semester.
Tuition fees in schools and universities are regulated.
Interest Rates
In the computation of the CPI in the Philippines, interest rate is not included as
one of the commodity items.
Owner-Occupied Housing
Imputed rents from owner-occupied housing are not included in the monthly
price survey.
Rental under the Housing and Repairs group is represented by a measure of

actual rental rates.
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Rental rates are collected from fixed residential units that are actually rented at
the time of the survey.
The survey of rental rates is done monthly.
Minor repair is represented by the costs of maintaining the house.
The maintenance cost includes cost of construction materials and wages of

carpenters, electricians and plumbers.
Regulated Prices
In general, prices of commodities and services in the CPI are not regulated.
However, during periods of calamity and emergency, a law is enforced to protect
consumers welfare. Republic Act. No. 7581 provides that it is the policy of the State
to ensure the availability of basic necessities and prime commodities at reasonable
prices at all times without denying legitimate business a fair return on investment. It is
also a declared policy of the State to provide effective and sufficient protection to
consumers against hoarding, profiteering and cartels with respect to the supply,
distribution, marketing and pricing of said goods, especially during periods of calamity,
emergency, widespread illegal price manipulation and other similar situations
2.7. Issues/Problems
No fixed interval (number of years) in the rebasing of the CPI

(1966,1972,1978, 1988, 1994, 2000)
- depends on the availability of FIES data
Reliability of price data from outlets selling items both at retail and wholesale
price
- price collector should emphasize that data collected for the CPI are retail
prices
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Security of data
- Maintenance of back-ups
- Availability of raw data to users
Coverage
Rural/urban disaggregation - The CPI for the Philippines refers to the All
Income CPI and has no disaggregation whether it is for rural or urban
households.
Operational problems
1. Allocation of a big budget for price surveys in municipalities located far

from the provincial capital and the NSO district office; also for island
municipalities which are deemed to be important sample municipalities;
2. Late submission of reports by BAS which causes delay in transmitting

survey results to NSO Central office; and
- enhance coordination of NSO with BAS
3. Late and non-submission of reports due to peace and order problems in some
provinces.
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2.8. Timetable of Operations
Activities: Schedule of Operations
1. Collection of Prices 1st 5 days of the reference month (1st phase)
middle of each reference month (2nd phase)
2. Manual Editing of Survey Forms 6th day of the reference month
3. Encoding/Consolidation of Prices 6th day of the reference month
4. Transmittal of Survey Forms to the 7th day of the reference month (1st phase)
Central Office
17th day of the reference month (2nd phase)
5. Deadline for submission of 1st phase 9th day of the reference month
reports
6. Deadline for submission of 2nd phase 19th day of the reference month
reports
7. Verification of Survey Forms at the 10th 26th day of the reference month
Central Office
8. Machine Processing 11th 26th day of the reference month
9. Verification of Results 27th 28th day of the reference month
10. Tabulation of Results 29th 30th day of the reference month
11. Analysis of data 1st 2nd day of the reference month
12. Submission of Reports to the 3rd day of the following month

Administrator
13. Press Release of the Monthly CPI 5th day of the following month
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CHAPTER III
THE PROVINCIAL CPI SYSTEM
3.1. What you Need to Get Started
You can install and run CPI Programs successfully using the following systems
requirements:
Hardware:
PC AT or compatible
At least one floppy disk drive
A hard disk with at least 1.2 MB free space
At least 640 KB RAM
A printer
Software:
Winzip
Installation Diskette -Provincial CPI System (PCPI)
DOS version 5.0 or higher
3.2 . Responding to Prompts/Questions
You can work with the PCPI system effectively and efficiently if you will respond
accordingly to what the system prompts you to do or if you will supply only the
correct answers to the systems questions.
Take time in reading this manual to enhance your knowledge with the CPI System
and familiarize yourself on the systems working environment. It would be better if
you have this manual at your side while working with CPI System.
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3.3 . Choosing an Option
Basically, the PCPI System was developed using a MENU-DRIVEN FORMAT

(MDF) allowing you to choose /highlight a given option by pressing the arrow keys
and then pressing the <Enter> key or the first letter of the options to execute your
choice.
There are other options that when you press the appropriate key, it will bring you to
your chosen option without anymore pressing the <Enter> key.
Choose an option that will conform you to the CPI normal processing flow and be
sure you have the data files available in your chosen directories (path).
3.4 . Creating Backup Copies of the CPI System
The programs developed for the CPI processing at the provincial offices is contained
in a diskette and collectively called the INSTALLATION COPY diskette. The
following is an example of the distribution diskette.
Provincial CPI System

(2000=100)
Pampanga
Copy the distribution diskette to another diskette for your backup copies. Backup
copies of the distribution diskette should be maintained for recovery purposes in
case the original diskettes have been corrupted or damaged. Use the distribution
diskette in the installation of the CPI system while the backup copies should be kept
secured in one place.
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3.5 . Active Keys
You may key-in different characters or invoke functions on your keyboard during CPI
operations.
You may want to use some of these active keys during the execution of CPI
programs:
Active Keys Functions/Location in the keyboard

Function keys Located at the topmost part of the keyboard
Note: These active keys vary from one module to another
Arrow keys Located at the lower right part of your
keyboard
Use for selecting options from the Menu
Use for positioning the cursor by character or
by field in Data Entry/Update Option
Up Arrow key Go to previous field
Down Arrow key Go to the next field
Right Arrow key Move one character to the right
Left Arrow key Move one character to the left
Other Keys
Esc Return to Main Menu (if you are in sub-menu
or any mode)
Backspace Delete the character to the left from the
current cursor position and move the cursor
one character to the left
Del Delete character at the current cursor
position
Enter Scroll up by one record (Update Mode)
Confirm your chosen option (Menus)
Ins Toggle to insert/Overwrite mode
Num Lock Activate numeric characters located at the
right side of your keyboard
Toggle the numeric keypad On/Off
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3.6 . Installing the PCPI System
To install the 2000-based provincial CPI system, unzip the file from the diskette to
the hard disk drive where you want to install the system, i.e., either in c:\ or d:\. All
the system files are then extracted/copied in the default sub-directory (c:\cpi00 or
d:\cpi00) automatically created by the system. It is recommended to use this default
sub-directory in the 2000-based CPI for us to be able to distinguish it from that of the
1994-based system.
3.7. THE PCPI MENU OPTION
You are now ready to select among the options given in the PCPI's Main
Menu.
Choose an option according to the PCPI normal processing flow.
Your Main Menu has the following options.
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3.7.1. The Data Entry Option
The Data Entry Option will allow you to key-in the prices from the survey forms.
To run this option,
Select Data Entry
The prompt below is now displayed.
Specify the path where the current you want to save the current month's data
press <Enter>.
Follow the instruction and key-in the name to the path or just press the <Enter>
Key (using Drive C in our example, as the default drive).
This program will check if the file exists. If not found, your program will display this
message:
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Select Y and press <Enter> to continue.
Your screen will ask the type of form you want to encode:
Start encoding the prices of all the commodities in all the outlets until you have
finished all the entries for FORM 1-A, the default survey form You have to complete
the Form 1-A first before you can proceed to the next form.
3.7.2. The KEY VERIFY Option
The KEY VERIFY option will enable you to check the correctness of prices entered by
rekeying all the data in the survey forms. Make sure that you have done first the data
entry before proceeding to this menu. Otherwise,
Upon selecting this option, your program will ask first to:
supply the path (as shown below) where the current month's data is found.
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Follow the instruction and key-in the name to the path or just press the <Enter>
Key (using Drive C in our example, as the default drive).
This program will check if the file exists. If not found, your program will display this
message:
NOTE: If this message appears on your screen, check if the path or sub-directory of
the data file is correct. Otherwise, you have to proceed first to the data entry
option.
Follow the prompt and press <Enter> to continue.
If the data file is existing, your screen will ask the type of form you want to verify:
Enter your choice (just press A, B, C, or D) and your system will prompt you to
start working on this option.
The program prompts you on the type of form to use.
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Type the letter of the form or use the Arrow Keys to highlight the desired form to
start the start the data entry and press <Enter>.
NOTE : The default survey Form is I-A. You have to complete the Form 1-A first
before you can proceed to the next form. Please see sample message
below.
When the screen displays Form A for data entry, you are now prompted to:
Enter the prices to the succeeding records in the same sequence as they
appear in the survey form.
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NOTE: The program automatically suffixes zeros for centavos by just pressing the
<Enter> Key.
This program will automatically search the next unverified record and prompt you to
rekey-in those unverified records in the same sequence as they appear on the
survey form.
As you rekey-in the prices, the program will verify if the entered price is exactly the
same as the corresponding price keyed-in in the DATA ENTRY program. If entries
do not match, an error message will be flagged on the screen as shown below:
If you want to change the price (which was entered in the DATA ENTRY option),
the new value
must be re-entered twice without pressing<Enter>.
The active keys for this option are the following:
F10 - Display Current Entry

Esc - Go Back to Main Menu
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Other features of this option are the following:
pressing the <F10> Key will display the current entry (entry keyed in during the
DATA ENTRY mode) just right below the current cell
in changing / editing the price, enter the price up to the last centavo(including
zeros) without pressing the <Enter> Key. (i.e., 2.5 must be entered 2.50 in full
including the decimal point)
highlighted entries means that error is detected
will display up to 10 items/records (maximum) before clearing the screen
3.7.3. The BROWSE / UPDATE Option
The BROWSE / UPDATE option allows you to browse and at the same time
update the data if there are some corrections on the current price/s displayed on
screen.
To run this option,
select BROWSE / UPDATE.
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You will be asked to
supply the path where the current month's data is found.
Follow the prompt and press the appropriate key or the <Enter> Key to use the
default drive.
The program will check/search if the data file exists. If not found, the program
will display this message:
Follow the prompt and press <Enter> Key to continue.
Then, if data file is found, your screen will ask the type of form you want to
BROWSE / UPDATE:
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NOTE: If the data file is not found, check the path or sub-directory where you have
stored the data file. Otherwise, you have to go first to the data entry
option.
Enter your choice (just press A, B, C or D) and the system will prompt you to
start working on the specified form.
This option allows you to BROWSE the entered prices. It is always in the
BROWSE mode unless you press F2 or F3 Keys to change the mode to
UPDATE. If there are corrections, switch to UPDATE mode to key-in the
correct price/s.
The program will prompt you to enter the code of the 1st record that will be
displayed or shown on the screen or you may press any of the following
function keys (F-KEY).
Below are other active keys for this option:
Esc - Return to BROWSE mode if in UPDATE mode

- Return to MAIN MENU if in BROWSE mode
Enter - Scroll up by one record
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This option will always display up to 10 records (maximum) on the screen starting
from the record / item specified in the box at the bottom of the screen. Default code
is the code of the first record in the survey form.
In the UPDATE mode, you will be able to update the entries in the first record or all
the records shown on the screen. If <Enter> Key is pressed without changing the
entry in the field, current value will be retained and cursor will go to the next field. If
there are changes made on the prices the program will recompute the new
average price.
Other features of this option are the following:
entering code in the small box (located at the bottom part of the screen) will
display the item corresponding to the code supplied at the top of the screen. If
the code does not exist, an error message will be flagged;
down and up arrow keys can be used to go from one field to another within a
record only;
will only accept numeric characters; and
pressing <Esc> Key during UPDATE mode will not reflect changes made in
the current record
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3.7.4 The VALIDATE / REJECT LISTING Option
The VALIDATE / REJECT LISTING option will be used to list all records with
questionable prices and their corresponding ERROR / WARNING messages.
To run this option,

select Validate / Reject Listing.
The default path where the current month's data is found is now displayed.
Press <Enter> if using the default drive.
The screen now displays the progress indicator in creating the index file.
Creating index file

% Complete: 82.95
Currently processing: 647 of 780
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The message below is now displayed:
Then you are now prompted to enter the path for the current month's data file.
Press <Enter> if your data is in the displayed default path.
Then, the prompt to where you will direct your output is displayed:
Press P, if you want print your output on paper or press F to have it printed on
file.
In pressing P, the screen below is displayed:
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Supply the appropriate answers to the prompts and press O for Okay and the
printer now begins printing.
NOTE: Be sure that the printer is set to on-line before pressing Okay.
To print the output on File,
press F, then type the desired filename on the highlighted bar and press
<Enter>.
Examples of Error Messages when we generate the provincial Reject Listing:
Error Messages Description Action to be taken

W-change >15% The current months price Verify the price of the
of an item for a particular item in that particular
outlet is 15% higher that outlet. If after verification,
its corresponding previous the price entered is found
months price. correct, accept the entry
and write the necessary
remarks on the reject
listing to be sent to the
Central Office. Otherwise,
reflect the correct price
using the Browse/Update
Option.
E- mean deviation > The current monthly Verify the prices of the
50% average price of the commodity by outlet. If
commodity exceeds 50% the entries for that
compared to its last commodity are verified
months average. correct, accept all the
entries for that
commodity. Otherwise,
correct the price using
the Browse/Update
option.
3.7.5. The MERGING OF THE 1ST & 2ND SURVEYS Option
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After processing the 1st & 2nd Surveys, you should now merge them into one file
which will be needed for the computation of Provincial CPI.
MERGING 1ST & 2ND SURVEYS option will enable you to combine or merge prices
from the 1st & 2nd Surveys.
To run this option,
press M or use the Up/Down Key to highlight Merge 1st & 2nd Surveys option
and press <Enter>.
The program will prompt you to supply the directory and the drive address of the
1st & 2nd Surveys of prices and the directory and the target drive where the
Merged file will be copied. Follow the instructions below:
NOTE:
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Press the highlighted letter or number to go back to the paths for updates.
After responding to the prompt, your screen will display the following:
Reading data from 1st survey

Please wait
Reading data from 2nd survey

Please wait
Indexing filePlease wait

% Complete: 11.23
Press the appropriate key to continue.
The system will now proceed to merging of files.
After a successful merging of files, the message below will appear on the screen.
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Press <Enter> to go to the next transaction.
3.7.6. The COMPUTE PRELIMINARY INDEX Option
The COMPUTE PRELIMINARY INDEX option will allow you to compute the
current month's preliminary Provincial Consumer Price Index.
Be sure that the 1st & 2nd Survey Files have already been merged before
computing the index.
To run this option,
select Compute Preliminary Index.
As you start working on this menu, a SUB-MENU will appear on your screen
prompting you to select among the options by pressing the arrow keys then press
the <Enter> Key.
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Compute Index
When you select this option, the prompt below is displayed:
Press <Enter> if the default path is correct or supply the path where the current
month's data is found, and press <Enter>.
The screens below are displayed.
Creating index
% Complete: 11.23
After the successful computation of the Provincial Consumer Price Index, the
message below is displayed.
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Press <Enter> to go to the next transaction.
Print Computed Index
The Print Computed Provincial Index option allows you to print the data on
paper or file.
Highlight this option from the sub-menu of the Compute Preliminary Index and
press <Enter>.
The screen now displays the creation of the needed index file, if it does not exist
yet.
Creating index file

% Complete: 82.95
After creating the index file, the printing prompt is displayed below:
Supply the appropriate answers to the prompt and press O for okay and C for
cancel.
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If you chose OK,
press P if you want to direct the printing output to the printer or press F for file
output.
NOTE: If you choose Printer, be sure to set the printer to online.
3.7.7. The REPORTS Option
The REPORTS option prompt you to choose the type of report you want to print.
To run this option,
select REPORTS.
Then, you are prompted to select the form you want to print.
Forms A,B,C,D With Current Prices
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Suppose you have chosen the FORMS I-A, B, C, D With Current Prices option,
the program will ask for the following:
Supply the Directory and the Drive Address and press <Enter>.
Then, the prompt for the direct output will be displayed on screen.
Select P for printer output or F for file output.
NOTE:
In selecting P for printer output, be sure that the printer is set to online or the
message below will be displayed.
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In selecting F for file output, supply the filename on the highlighted bar and press
<Enter>.
The program will then flash the message on the screen, which means the program
is now printing the survey form you have selected:
This option will enable you to produce the following reports (with surveyed prices):
FORM I-A - SURVEY OF RETAIL PRICES OF AGRICULTURAL FOOD ITEMS
FORM I-B - SURVEY OF RETAIL PRICES OF PROCESSED FOOD ITEMS.

BEVERAGES AND TOBACCO
FORM I-C - SURVEY OFRETAIL PRICES OF NON-FOOD ITEMS
FORM I-D - SURVEY OF COSTS OF FUEL, LIGHT AND WATER, HOUSE

RENTALS AND SERVICES
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Blank Form A, B, C, D
Selecting the BLANK FORMS I-A, B, C, D option, the program will prompt you to
supply the type of form you want to print.
Press <Enter>.
The prompt for the output will be displayed
Press P if you want to direct your output to the printer or F if you want the
output to be printed on file.
This option will enable you to produce the following reports which will be used for
the following months survey of prices:
Blank Form A
Blank Form B
Blank Form C
Blank Form D
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3.7.8. The BACKUP DATA DISKETTE Option
The BACKUP DATA DISKETTE option will allow you to backup data files from
your source drive to your target drive.
To run this option,
Press B or use the Up/Down Arrow Key to highlight Backup Data Diskette
option and press <Enter>.
You are now prompted to supply the Source and the Target drives.
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Follow the instruction on your screen. Specify the source and target directories or
just press <Enter> Key if the displayed drives/directories are correct. Then press
O if Okay otherwise, type C to Cancel.
NOTE: Be sure to use different drives for your source and target disks, otherwise
your program will flash an error message on your screen.
3.7.9. The CONFIGURE Option
The CONFIGURE option will enable you to setup the configuration system. This
serves as the working environment of PCPI system.
To run this option,
select Configure.
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The screen below will be displayed
Information to be supplied are the following:
1. Province Name
2. Provincial Office Address
3. Directory Where Reference Files are Installed
4. Directory Where Programs are Installed
5. Default Data File Directory
6. If Special City or Not
7. Name of PSO
8. Name of Supervisor
9. Name of Enumerator
10. Name of Keyer/Verifier
The data you supplied in the System Configuration will be stored in CONFIG.CPI
file. This file is stored in the directory where you installed the PCPI program files.
88
Be sure that this file is present in the said directory where you run the PCPI
program. Otherwise, you may not able to run the system properly.
3.7.10. The CHANGE SUBJECT Option
The CHANGE SUBJECT option allows you to change the target Province,
Month, Year and the Survey round.
To run this option,
select Change Subject.
The system now displays the Change Subject screen for update.
Use the <Enter> Key to go where change(s) will be made.
Then overwrite the default data displayed.
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After the necessary changes, press O for confirmation of the changes.
3.7.11. The USERS REFERENCE RECORDS Option
The Users Reference Records option is used to Add, Update or Delete the
users file.
This option allows you to access the file containing the list of users who can
access the PCPI system.
To run this option,
select Users Reference Records.
The screen will now display the Users Reference Record for updating, deleting
or adding a users file.
90
To display the Help Keys to be used,
press F1
The screen now displays the Help Window.
Adding a User Record
Press F3
The screen displays a blank Users Reference Record.
Supply the User ID, User Name, Position (Keyer, Verifier, etc.), User
Password, and answer the question if you are a Supervisor or not.
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NOTE: Only Supervisors can add, delete or update Users records.
If you are not a Supervisor, you can update only your record.
The message below will be displayed.
Select Yes to confirm the deletion otherwise select No.
Searching for a Users Reference Record
Press F6
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The prompt for the User ID to be searched is now displayed.
Supply the User ID and press <Enter>.
The User ID that you searched will now be displayed.
NOTE:
In supplying the User Password, a window is displayed for you to enter the new
password and re-type it for configuration. See sample screen below:
After the password has been confirmed, the message below is displayed:
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Updating the Users Reference Record
Search first the Users Reference Record you want to update by pressing F6.
When the record is displayed,
press F4
Place the cursor to the line where the update will be made, then overwrite with
the correct information.
Deleting the Users Reference Record (only Supervisor can use this option)
Search first the Users Reference Record you want to delete by

pressing F6
When the record is displayed,
press F5. A message will be displayed that the record has been deleted.
3.7.12. The DOS SHELL Option
This option prompts you to execute DOS commands within the PCPI system.
94
To run this option,
select DOS SHELL.
Then the system will now prompt you to execute DOS Commands.
After executing the DOS Commands.
Type EXIT to get back to the PCPI system.
95
3.7.13. The QUIT Option
The QUIT option allows you to exit from the PCPI system and gets you back to
where you were before you ran the system.
3.8 Summary of the Identified Error Messages while working with the PCPI
system
Listed below are some of the identified error messages while working with the
PCPI system and the corresponding action to be taken for each of the error
message:
Error Message/s: Possible reasons: What to do:
Please dont leave You did not supply Supply all necessary
enough information, thus information
Blank fields
desired processing cannot
be done.
Invalid Geographic Code Reg/prov code supplied is Supply the correct reg/prov
incorrect. code
Monthly file not found Index had not been Run computation of index
computed yet. (again)
Please recompute index
Nothing to print The file rrppWORK.CPI is Reinstall rrppWORK.CPI

empty or corrupted.
Starting page entered is You supplied a 0 or Specify a number greater

invalid negative value for starting than 0
page number.
Entered drive for You supplied a drive Specify an existing and

MERGED data is invalid which is either not accessible drive address
accessible or not existing.
Record not found You entered a code that Supply an existing

does not exist. commodity code
96
Insufficient memory You are running too many Quit other running
applications at the same application/s before
time. running PCPI
Unrecoverable error An internal error that the Quit the program and rerun
occurred program cannot control it
has happened.
User ID not found You entered a user ID that Supply an existing user ID
does not exist yet in the
configuration file.
Output file empty *This error happens when Be sure that the reference
you chose to direct the files rrppWORK.CPI and
output to a file. rrppCODE.CPI are not
corrupted or you can do
*You might have
any of the following:
cancelled the process
while printing to file. - Reinstall the said
files
*The reference files
rrppWORK.CPI and - Recompute index
rrppCODE.CPI might be
corrupted.
*If youre printing the
worksheet, you might
have not computed for the
index yet.
Unsuccessful merging *The survey files might be *Retry merging of files

corrupted.
*If youre writing to a floppy
*There might be errors disk, be sure that it is
encountered while writing clean (newly formatted,
merged data to file. These to be sure).
errors can be disk-related
such as data error bad
sectors, bad tracks, etc.
No record *The reference file is *Reinstall rrppCODE.CPI

empty, damaged, or
*Merge survey files (again)
corrupted.
*Survey files were not yet
merged.
File from 1st/2nd survey not *1st/2nd survey file does *Key-in prices for 1st/2nd
found not exist yet. survey file
97
Failed! <filename1> not Backing up of file was not Be sure that the floopy disk
copied to <filename2> successful, this can be to copy files to is clean
rooted to some disk
problems like bad sectors
and tracks,data error, etc.
Cannot validate merged Survey files dont exist. Be sure that the stated
file year month to process are
correct
<drive> is not ready for *No disk inserted into the *Insert unprotected disk
access specified drive. into the specified target
drive
*If youre working in a
network environment, you *In a network environment,
have no sufficient rights to ask your administrator to
write the target drive. give you rights to write to
the specified drive
<dir> is not a valid Given path is not existing. Supply an existing and
path/directory or the path accessible path/directory
does not exist
End of file reached! All records for the Process next form
specified form are already
All records have been
done with data
entered/verified
entry/verification module.
Not enough disk space in The space available in the To be sure that the
drive <drive> target disk is not enough process will be successful,
to sustain the desired file use a newly formatted
to be copied to it. diskette
98
3.9 Transmittal of the Data files
Email all your reports directly to r.staana@mail.census.gov.ph or

e.varona@mail.census.gov.ph or mail them to:
THE ADMINISTRATOR
National Statistics Office
Ramon Magsaysay Blvd.
Sta. Mesa, Manila
ATTENTION: ITSD-EIID
Make sure that respective Regional Office should be copy furnished with all the
data files being transmitted to the Central Office.
99
Annex
GLOSSARY OF TERMS:
Below are some of the definition of terms and concepts used when dealing with the
Consumer Price Index (CPI):
1. Index number- is a device used to compare relative movement in the magnitude

of a variable or group of distinct but related variables between two or more
points in time. An index number also shows the relative differences in the
magnitude of a variable obtained at the same period of time in different areas.
The index number is expressed in percentage form and its units of measure is
percentage point. The base of comparison is taken as 100, facilitating measure
of change or difference relative to the base.
2. CPI - is an indicator of the change in the average retail prices of a fixed basket of
goods and services commonly purchased by households relative to a base year.
3. Retail Price the price at which a commodity is sold for spot in small quantities for
consumption.
4. Base Period/Base Year - is the period, usually a year, at which the index number is
set to 100. It is the reference point of the index number series.
5. Market basket - is a term used to refer to a sample of goods and services that are
commonly purchased and bought by an average Filipino household.
6. Weight - is a value attached to a commodity or group of commodities to indicate the

relative importance of that commodity or group of commodities in the market
basket.
100
7. Inflation rate - is defined as the annual rate of change or the year-on-year change in
the CPI. That is,
CPI2 CPI1
Inflation Rate = -------------------- *100
CPI1
where:
CPI2 is the CPI in the second period

CPI1 is the CPI in the previous period
8. Purchasing Power of Peso (PPP) - is a measure of the real value of the peso in a
given period relative to a chosen reference period. It is computed by getting the
reciprocal of the CPI and multiplying the result by 100. That is,
1
PPP = -------- * 100
CPI
101

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CHAPTER I

THE CONSUMER PRICE INDEX

Consumer Price Index (CPI): What it measures

CPI is an indicator of the change in the average retail prices of a fixed

What does the CPI mean?

Uses of the CPI:

Specifically, the CPI is use as follows:

As a means of comparing price movements in different areas of

As a definite measure of change in the value of money or of the

As basis in adjusting or escalating wages, contracts, pensions,

As deflator to express value series in real terms, that is measuring

As basis for forecasting business and economic conditions; and;

As an indicator of the economic well-being of a certain area,

1.2. Historical Background

Subsequent revisions were done in the following years:

1.3. Features of the 2000-based CPI

1.3.1. Base Period

1.3.2. Market Basket

Market basket is a term used to refer to a sample of goods and services

NCR 701 701 490 69.9 211 30.1

Abra 434 428 (1.4) 192 44.9 236 55.1

Benguet 464 440 (5.2) 314 71.4 129 29.3

Ifugao 364 371 1.9 234 63.1 137 36.9

Kalinga 492 454 (7.7) 320 70.5 134 29.5

Mt. Province 405 410 1.2 236 57.6 174 42.4

Baguio City 454 354 (22.0) 185 52.3 169 47.7

Ilocos Norte 532 566 6.4 381 67.3 185 32.7

Ilocos Sur 439 524 19.4 302 57.6 232 44.3

La Union 526 574 9.1 247 43.0 327 57.0

Pangasinan 607 624 2.8 531 85.1 93 14.9

Batanes 285 285 285 100.0

Cagayan 565 587 3.9 344 58.6 243 41.4

Isabela 586 690 17.7 493 71.4 197 28.6

Nueva Vizcaya 502 545 8.6 296 54.3 249 45.7

Quirino 413 407 (1.5) 230 56.5 177 43.5

Bataan 546 565 3.5 395 69.9 170 30.1

Bulacan 594 592 (0.3) 564 95.3 28 4.7

Nueva Ecija 677 682 0.7 359 52.6 323 47.4

Pampanga 574 580 1.0 363 62.6 217 37.4

Percent No. of Percent of No. of New Percent of

Tarlac 583 644 10.5 463 71.9 181 28.1

Zambales 558 578 3.6 428 74.0 150 26.0

Olongapo City 521 544 4.4 383 70.4 161 29.6

Aurora 461 455 (1.3) 245 53.8 210 46.2

Batangas 568 556 (2.1) 433 77.9 123 22.1

Cavite 622 626 0.6 546 87.2 80 12.8

Laguna 633 636 0.5 528 83.0 108 17.0

Quezon 601 582 (3.2) 533 91.6 49 8.4

Rizal 647 666 2.9 473 71.0 180 27.0

Marinduque 502 538 7.2 323 60.0 215 40.0

Occ. Mindoro 553 559 1.1 417 74.6 142 25.4

Or. Mindoro 565 573 1.4 540 94.2 33 5.8

Palawan 553 537 (2.9) 326 60.7 211 39.3

Romblon 467 499 6.9 375 75.2 124 24.8

Albay 593 624 5.2 453 72.6 171 27.4

Cam. Norte 534 508 (4.9) 411 80.9 97 19.1

Cam. Sur 566 571 0.9 541 94.7 30 5.3

Catanduanes 494 434 (12.1) 270 62.2 164 37.8

Masbate 527 516 (2.1) 367 71.1 149 28.9

Sorsogon 505 485 (4.0) 395 81.4 90 18.6

Percent No. of Percent of No. of New Percent of

Aklan 563 566 0.5 398 70.3 168 29.7

Antique 595 586 (1.5) 468 79.9 113 19.3

Capiz 591 571 (3.4) 400 70.1 161 28.2

CPI User's Manual

CPI User's Manual