1. What is CPI Inflation?

The Consumer Price Index (CPI) measures changes in the price level of a basket of consumer goods and services purchased by households. Inflation is the percentage change in CPI over time, indicating how much prices have increased.

2. How Does the Calculator Work?

The calculator uses the CPI inflation formula:

Where:

• \( \text{CPI}_{\text{current}} \) — Current period CPI value
• \( \text{CPI}_{\text{base}} \) — Base period CPI value

Explanation: The formula compares the current price index to a base period index to determine the percentage change in prices.

3. Importance of Inflation Calculation

Details: Inflation measurement is crucial for economic policy, wage negotiations, investment decisions, and understanding purchasing power changes in the Philippines.

4. Using the Calculator

Tips: Enter the current CPI and base CPI values from official Philippine Statistics Authority data. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CPI and inflation?
A: CPI is the price index number, while inflation is the percentage change in CPI over time.

Q2: Where can I find official CPI data for the Philippines?
A: The Philippine Statistics Authority (PSA) publishes official CPI data monthly on their website.

Q3: What is considered high inflation in the Philippines?
A: Typically, inflation above 4-6% is considered high, though this depends on economic context and Bangko Sentral ng Pilipinas targets.

Q4: How often is CPI calculated in the Philippines?
A: The PSA calculates and publishes CPI data monthly for the Philippines.

Q5: What items are included in Philippines CPI basket?
A: The basket includes food, housing, utilities, transport, education, and other typical household expenses in the Philippines.