Subnational Purchasing Power Parities toward Integration of International Comparison Program and...

7/27/2019 Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines

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ADB EconomicsWorking Paper Series

Subnational Purchasing Power Paritiestoward Integration o InternationalComparison Program and Consumer PriceIndex: The Case o the Philippines

Yuri Dikhanov, Chellam Palanyandy, and Eileen Capilit

No. 290 | December 2011


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ADB Economics Working Paper Series No. 290

Subnational Purchasing Power Parities

toward Integration o International

Comparison Program and Consumer PriceIndex: The Case o the Philippines

Yuri Dikhanov, Chellam Palanyandy, and Eileen CapilitDecember 2011

uri ikhanov is enior conomist at the orld Bank; Chellam alanyandy is ead tatistician and

(LOHHQ&DSLOLWLV$VVRFLDWH(FRQRPLFVDQG6WDWLVWLFV2IFHUDWWKH'HYHORSPHQW,QGLFDWRUVDQG3ROLF\esearch ivision conomics and esearch epartment Asian evelopment Bank. he authors thankaul cCarthy irginia aac osie ta. Ana and lena arona for their valuable inputs; and rasada5DRDQG'RXJODV%URRNVIRUWKHLUFRPPHQWV7KHSDSHUDOVREHQHWHGIURPGLVFXVVLRQVZLWK$GPLQLVWUDWRU&DUPHOLWD(ULFWDDQGWKHWHFKQLFDOVWDIIRIWKH1DWLRQDO6WDWLVWLFV2IFHRIWKH3KLOLSSLQHV7KHDXWKRUVaccept responsibility for any errors in the paper.


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0 by Asian evelopment Bankecember 0,661ublication tock o. 4

7KHYLHZVH[SUHVVHGLQWKLVSDSHUare those of the authors) and do notQHFHVVDULO\UHHFWWKHYLHZVRUSROLFLHVof the Asian evelopment Bank.

he AB conomics orking aper eries is a forum for stimulating discussion and

eliciting feedback on ongoing and recently completed research and policy studies

undertaken by the Asian evelopment Bank AB) staff consultants or resource

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strategies and its subregional and country operations; and improve the quality and

availability of statistical data and development indicators for monitoring development

effectiveness.

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journals or chapters in books. he series is maintained by the conomics and esearch

epartment.


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Contents

Abstract v

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B. ata tructure 8

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A. rganization of ata for Computing ubnational s

B. etermining roduct verlaps 4

C. ubnational Aggregation

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eferences


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Abstract

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the output is temporally consistent subnational price levels subnational s)

that can be used in regional price comparisons real income dimension of human

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broadly similar.

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I. Background

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to compare levels of economic activity and relative price levels among countries of the

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ring countries for each region that are required to price items from a common ring list

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1 For a thorough discussion on the ring comparison, see World Bank (2008).


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the Asian evelopment Bank AB) recognized that the key to achieving sustainability

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A direct use of regional price levels is to calculate s that can be used for analyzing

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Advisory roup to provide advice on the methods to be adopted for assessing poverty

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the poor. An assumption is made in this process that the prices faced by the poor are

proportional to national average prices in each of the countries being compared. he

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consumed by the poor and the general population are likely to be less pronounced then

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2 The Regional Technical Assistance (RETA 6482: Improving Price Collection o Non-Household ExpenditureComponents and Updating Purchasing Power Parity Estimates or Selected Developing Member Countries) is

participated in by 21 economies including: Bangladesh; Bhutan; Brunei Darussalam; Cambodia; the PeoplesRepublic o China (PRC); the Republic o Fiji; Hong Kong, China; India; Indonesia; the Lao Peoples DemocraticRepublic; Malaysia; the Maldives; Mongolia; Nepal; Pakistan; the Philippines; Singapore; Sri Lanka; Taipei,China;Thailand; and Viet Nam. The same group o economies participated in the 2005 ICP Asia Pacifc along with twoother non-ADB members, Macao, China and Islamic Republic o Iran (see ADB 2009).

3 Under RETA 6088 (ADB 2008), 16 economies, namely, Bangladesh, Bhutan, Cambodia, the Republic o Fiji, India,Indonesia, the Lao Peoples Democratic Republic, Malaysia, Maldives, Mongolia, Nepal, Pakistan, the Philippines,Sri Lanka, Thailand, and Viet Nam participated in this study, which used the Malaysian Ringgit as the numerairecurrency.

2 | ADB Economics Working Paper Series No. 290


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an international poverty line.

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obtaining subnational estimates.

II. Objectives

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applying the concepts and methodology for broad product subgroups e.g. Cereals

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one region or capital city) and adjust the collected price levels to national average pricesXVLQJWKHUHJLRQDOUHODWLRQVKLSVLGHQWLHGIURPWKH&3,GDWDEDVHDIWHUFDOFXODWLQJWKH

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4 NSCB (2009) provides details on the market basket determination and cut-o points or the expenditure weightso the bottom 30% o the population.

Subnational Purchasing Power Parities toward Integration of International Comparison Programand Consumer Price Index: The Case of the Philippines | 3


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III. Challenges

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representative. Comparability can pose some problems but less so than in international

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of broad parameters that distinguish the type of product to be selected.

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each month so that the prices observed are not affected by changes in quality. herefore

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13/41

IV. ICP and CPI: Establishing the Link between Spatial

and Temporal Indexes

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used to construct s but it is necessary to collect additional prices for international

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collected.

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meant to serve different purposesspatial and temporal comparisons respectivelycan

be integrated to construct subnational s.

A. International Comparison Program

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corresponding ). A basic heading can be used to divide the values for that

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those broader aggregates up to the level of .

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or regions) and as a result they are often referred to as providing spatial comparisons

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14/41

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B. Consumer Price Indexes

$SULFH LQGH[PHDVXUHVFKDQJHVRYHUWLPHLQWKHSULFHVRIWKHJRRGVDQGRUVHUYLFHV

ZLWKLQLWVGHQHGVFRSH3ULFHLQGH[HVFDQEHFRPSLOHGIRUDQ\SHULRGHJPRQWKRU

quarter or year) but most commonly they are compiled monthly. heir scope can be

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C. Subnational PPPs: Applying ICP Concepts to CPI Inormation

he theory and processes underlying international comparisons can also be applied

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PHHWZLWKLQDFRXQWU\WKDQLWLVEHWZHHQFRXQWULHV,QSUDFWLFHWKHPDLQFRQVWUDLQWLQ

producing subnational s is obtaining the detailed values for product groups in each

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5 In ICP, the price level index is expressed as the price level o a given country relative to another by dividing thePPP by the market exchange rate relative to the base country.



15/41

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inputs into generating internationally comparable datasets that can be used in analyzing

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EHXVHGWRGHWHUPLQHSRYHUW\OLQHVZLWKLQDFRXQWU\DQGFRPSDUHSRYHUW\OHYHOVDFURVVregions or provinces based on a comparable basket of goods and services.

V. The Philippines CPI

he applicability of the subnational or intracountry compilation is demonstrated in

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the implementation. his section basically discusses the scope and coverage; and the

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A. Scope and Coverage

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6 See NSO (2011) or detailed notes on the rebasing o the CPI rom 1994 to 2000.



16/41

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could be calculated at this very detailed level to distinguish the different consumption

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B. Data Structure

1. Basket o Products and Broad Classifcation

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of individual products included in the basket ranges from 8 in the province of Batanes

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7 Note that the National Capital Region is considered both as region and a province considering its geographic andeconomic size.



17/41

Table1: Consumer Price Index Classifcation by Major Groups and Subgroups

Code Major Group/Subgroup

1 Food, beverages and tobacco11 Cereals and cereal preparations12 Dairy products

13 Eggs14 Fish15 Fruit and vegetables16 Meat17 Miscellaneous oods18 Beverages19 Tobacco

2 Clothing and ootwear20 Clothing21 Footwear22 Ready-made apparel, except ootwear23 Custom clothes (accessories and services)

3 Housing and repairs31 Minor repairs

32 Rentals4 Fuel, light and water

41 Fuel42 Light43 Water

5 Services51 Educational services52 Medical services53 Personal services54 Recreational services55 Transportation and communication56 Other services

6 Miscellaneous61 Household urnishing and equipment

62 Household operations63 Personal care and eects64 Other miscellaneous goods

Total (All groups)

Source: National Statistics Oce (2000).

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2. Price Quotations

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the country. he prices are collected from a sample of outlets selected on the basis



18/41

of their importance in sales of the products to be priced and on the consistency and

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3. Base/Reerence Year and Sources o Weights

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4. Regular CPI Aggregation Methodology

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available only some time after their reference period because it is necessary to conduct

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19/41

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CPI sum P P W sum W

n o= ( ) )

( )/ 100

)

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INFLATION RATECPI CPI

CPI= 2 1

1

100

)

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VI. Estimation Methodology: Subnational PPP

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corresponding regional and country populations in 00.



20/41

Table 2: Population o the Philippines, by Region, 2010

Region Code Region Name Population

Region I Ilocos Region 5,172,900

Region II Cagayan Valley 3,365,400

Region III Central Luzon 10,159,300Region IV-A CALABARZON 11,904,100

Region IV-B MIMAROPA 3,018,000

Region V Bicol Region 5,711,500

Region VI Western Visayas 7,578,000

Region VII Central Visayas 7,029,300

Region VIII Eastern Visayas 4,447,500

Region IX Zamboanga Peninsula 3,487,400

Region X Northern Mindanao 4,349,300

Region XI Davao Region 4,362,400

Region XII SOCCSKSARGEN 4,080,400

Region XIII Caraga 2,549,400

ARMM Autonomous Region in Muslim Mindanao 3,551,800CAR Cordillera Administrative Region 1,694,400

NCR National Capital Region 11,552,100

PHI Philippines 94,013,200

Sources: 2000 Census-based Population Projections in collaboration with the Inter-Agency Working Group on Population Projections,National Statistics Oce, available: www.census.gov.ph/data/sectordata/popproj_tab3r.html.

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criterion is to obtain a set of prices for products that must be identical so that their

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i) if their physical and economic characteristics are identical or

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prepared to pay more for one than the other.

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organization of the data for computing subnational ii) the determination of the

overlapping products; and iii) subnational aggregation.



21/41

A. Organization o Data or Computing Subnational PPPs

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WKHGDWDGHVFULSWRUVDQGWKHDYDLODELOLW\RISURJUDPVWRH[WUDFWWKHSULFHVLQWKHIRUPDW

UHTXLUHGWREHDEOHWRDYHUDJHWKHPZLWKLQHDFKUHJLRQ

7KH3162ZDVDEOHWRH[WUDFWSULFHVGDWDUHODWLYHO\HDVLO\DVHDFKSURGXFWLQWKH&3,

EDVNHWFDUULHVDXQLTXHSURGXFWFRGHDQGLVLGHQWLDEOHDFURVVUHJLRQV7KLVIDFLOLWDWHG

converting them into average prices for each product in each region and copying them

LQWRDVSHFLDOGDWDEDVHIRUWKHVXEQDWLRQDOFRPSDULVRQV7KHRXWSXWGDWDEDVHZDV

H[DPLQHGFORVHO\ZLWKWKHUVWVWDJHHVVHQWLDOO\EHLQJDPDQXDOH[HUFLVHWRLGHQWLI\WKRVH

SURGXFWVZKRVHDYHUDJHSULFHVFRXOGEHFRPSDUHGGLUHFWO\DFURVVUHJLRQV7KHSURFHVVLQYROYHGHQVXULQJWKDWSURGXFWVWKDWDSSHDUHGWREHWKHVDPHZHUHDFWXDOO\LGHQWLFDOLQ

SUDFWLFHDQGWKDWWKHDYHUDJHSULFHVZHUHQRWXQGXO\LQXHQFHGE\GLIIHUHQFHVLQNH\

FKDUDFWHULVWLFVZLWKWKHVL]HRIWKHSDFNDJHVRUFRQWDLQHUVEHLQJSDUWLFXODUO\LPSRUWDQW

RUH[DPSOHDQDYHUDJHSULFHIRUVRIWGULQNVZRXOGLQFOXGHFRQWDLQHUVUDQJLQJIURP

PLOOLOLWHUVPOWROLWHUVZKLFKFRXOGGLVWRUWWKHDYHUDJHSULFHVHYHQDIWHUWKH\ZHUH

FRQYHUWHGWRXQLWSULFHEHFDXVHWKHSULFHSHUXQLWRITXDQWLW\LVPXFKORZHUIRUODUJHVRIW

GULQNERWWOHVWKDQIRUVPDOOHURQHV,QVXFKFDVHVLWZDVQHFHVVDU\WRVSOLWWKHFDWHJRU\

LQWRWZRRUPRUHSURGXFWJURXSVHJVRIWGULQNFRQWDLQHUVRIPORUOHVVDQGWKRVH

greater than 00 ml).

7KHDYHUDJHSULFHVH[WUDFWHGIURPWKH&3,GDWDEDVHZHUHWKHPDLQLQSXWVEXWDVLVWKHFDVHZLWKLQWHUQDWLRQDOFRPSDULVRQVH[SHQGLWXUHYDOXHVZHUHDOVRUHTXLUHGVRWKDW

the s for individual products could be aggregated into those for broader product

JURXSV7KHDLPZDVWRKDYHYDOXHVDYDLODEOHIRUHDFKUHJLRQDWWKHPRVWGHWDLOHGOHYHO

,QWKH3KLOLSSLQHVQDWLRQDODFFRXQWVKRXVHKROGGLVSRVDEOHLQFRPHGDWDDUHQRWUHDGLO\

DYDLODEOHDWWKHUHTXLUHGOHYHORIGHWDLO7KHUHIRUHUHJLRQDOGDWDIURPWKH,(6ZHUHXVHG

to provide the values and hence the analysis should be limited to household income and

H[SHQGLWXUHDQGQRWWRWKHHQWLUH*'3DVLQWKHFDVHRI,&3:KLOHWKH,(6FRQWDLQV

VXIFLHQWO\GHWDLOHGGDWDWRHQDEOHH[SHQGLWXUHVRQEURDGSURGXFWJURXSVWREHHVWLPDWHG

LWZDVJHQHUDOO\QRWSRVVLEOHWRFDOFXODWHEDVLFKHDGLQJYDOXHVZKLFKLVWKHORZHVWOHYHO

RIFODVVLFDWLRQLQWKH,&3+HQFHVXEQDWLRQDO333VZHUHHVWLPDWHGDWKLJKHUOHYHO

aggregates.



22/41

B. Determining Product Overlaps

As is the case for international comparisons another characteristic required for

subnational comparisons is representativity. ne of the criteria for selecting products

LQFRPSXWLQJVXEQDWLRQDO333VLVWKDWWKH\VKRXOGEHUHSUHVHQWDWLYHRIFRQVXPHUVSXUFKDVHV7KHQDWLRQDO&3,EDVNHWLVVXSSRVHGWRFDSWXUHWKLVFKDUDFWHULVWLFDQG

therefore need not be considered further in this case study since all products in the

&3,FDQEHFRQVLGHUHGWREHUHSUHVHQWDWLYH+RZHYHUDVPHQWLRQHGLQ6HFWLRQ,9%

HDFKDUHDSURYLQFHUHJLRQKDVLWVRZQUHJLRQDOEDVNHWWKDWUHSUHVHQWVLWVUHJLRQDOO\

SXUFKDVHGRUFRQVXPHGLWHPVDQGUHHFWVLWVFRQVXPSWLRQSDWWHUQ+HQFHLWZDV

HVVHQWLDOWRGHWHUPLQHZKLFKRIWKHOLVWRIUHJLRQDOUHSUHVHQWDWLYHSURGXFWVDUHEHLQJ

SULFHGE\DWOHDVWWZRUHJLRQVWRHVWDEOLVKRYHUODS,QFDVHVRIVSDUVHGDWDVHWV333

FDOFXODWLRQPD\VWLOOQRWEHSRVVLEOHHYHQZKHQELQDULHVDUHHVWDEOLVKHG,WLVQHFHVVDU\

WKHUHIRUHWRHVWDEOLVKDWZKLFKOHYHOWKHELQDU\FRPELQDWLRQVDQGWKHLUWUDQVLWLYLW\ZLOOEH

DSSDUHQWDQGZLOO\LHOGPRUHUREXVWDQGUHDOLVWLF333V7KHVHLPSO\WKDWWKHSURFHVVRI

VXEQDWLRQDOFRPSDULVRQVXVLQJ&3,GDWDLVQRWFRPSOHWHO\VWUDLJKWIRUZDUG

7KHEDVNHWRIJRRGVDQGVHUYLFHVSULFHGIRUWKH&3,UHPDLQVUHODWLYHO\VWDEOHLQWKH

VKRUWWRPHGLXPWHUPEHFDXVHWKHPDLQDLPRIWKH&3,LVWRFRPSDUHSULFHVRYHUWLPH

he changes that do occur are to replace products that are no longer available and to

LQWURGXFHQHZSURGXFWVWKDWZHUHQRWSUHYLRXVO\DYDLODEOHRUH[DPSOHZKHQWKH&3,

ZDVXSGDWHGIURPDWRDEDVH\HDURIWKHSURGXFWVLQWKH1&5ZHUH

UHWDLQHGZKLOHRIWKHSURGXFWVZHUHFKDQJHG7KHSULFHVSHFLFDWLRQVIRUWKH

&3,LQGLIIHUHQWORFDWLRQVZLWKLQWKHFRXQWU\DUHEURDGO\VLPLODUDVIDUDVWKHFRYHUDJH

RISURGXFWVLVFRQFHUQHGEXWWKHH[DFWVSHFLFDWLRQVFDQGLIIHUDPRQJUHJLRQVWRWDNH

account of local conditions e.g. package sizes may not be the same in different regions

RUWKHYDULHWLHVRIDSURGXFWPD\EHGLIIHUHQW$VDUHVXOWVRPHSUREOHPVDULVHZKHQWKH&3,GDWDDUHXVHGLQFRPSDULQJVXEQDWLRQDOSULFHOHYHOV

+DQGOLQJVRPHRIWKHVHSUREOHPVLVUHODWLYHO\VWUDLJKWIRUZDUG'LIIHUHQWSDFNDJHVL]HVFDQ

be adjusted to a unit price provided that the package sizes are relatively similar e.g.

DJUDPSDFNHWFRXOGEHFRPSDUHGZLWKDJUDPSDFNHWRIWKHVDPHSURGXFWRQ

WKHEDVLVRISULFHSHUJUDPVEXWDJUDPSDFNHWZRXOGEHFRQVLGHUHGDGLIIHUHQW

SURGXFWIURPDJUDPRQH$PRUHGLIFXOWSUREOHPDULVHVZKHQGLIIHUHQWYDULHWLHV

RIWKHVDPHSURGXFWDUHVROGLQGLIIHUHQWUHJLRQVRUH[DPSOHFRQVLGHUWKUHHGLIIHUHQW

EUDQGVRIFRIIHHWKDWDUHFRQVLGHUHGWREHRIGLIIHUHQWTXDOLWLHV,QUHJLRQEUDQG$DQG

EUDQG%DUHVROGZKLOHLQUHJLRQDOOWKUHHEUDQGVDUHLQFOXGHGLQWKH&3,EXWRQO\

brand C is priced in region . he regional availability of the different brands is illustratedin able .



23/41

Table 3: Example or Identiying Product Overlap

Coee Region 1 Region 2 Region 3 Assessment

Brand A Priced Priced Include

Brand B Priced Exclude

Brand C Priced Priced IncludeSource: Authors illustration.

,QWKLVH[DPSOHLWLVFOHDUWKDWFRIIHHSULFHVFDQQRWEHGLUHFWO\FRPSDUHGEHWZHHQUHJLRQ

DQGUHJLRQEHFDXVHQRQHRIWKHEUDQGVLVFRPPRQWRERWKUHJLRQV,WLVSRVVLEOH

WKRXJKWRFRPSDUHEUDQG$GLUHFWO\EHWZHHQUHJLRQVDQGDQGWRFRPSDUHEUDQG

&GLUHFWO\EHWZHHQUHJLRQVDQG7KHSURFHVVLQVXFKFDVHVLVWRLQFOXGHDOOWKH

SRVVLEOHPDWFKHVZKHQPDNLQJWKHFRPSDULVRQ,QWKHDERYHH[DPSOHEUDQG$ZRXOGEH

FRPSDUHGEHWZHHQUHJLRQVDQGDQGEUDQG&ZRXOGEHFRPSDUHGEHWZHHQUHJLRQV

DQG5HJLRQLQZKLFKEUDQGV$DQG&ZHUHSULFHGSURYLGHVDOLQNEHWZHHQFRIIHH

SULFHVLQUHJLRQVDQG,QWKHPHDQWLPHEUDQG%ZLOOEHGURSSHGIURPWKHVXEQDWLRQDOFRPSDULVRQDVLWZDVSULFHGRQO\LQUHJLRQ

7KHDERYHH[DPSOHRIFRIIHHEUDQGVEHLQJSULFHGLQGLIIHUHQWUHJLRQVDVVXPHVWKDWWKH

VDPHSURGXFWVDUHEHLQJVSHFLHGLQWKHVDPHZD\LQHDFKUHJLRQ,QSUDFWLFHVRPH

SURGXFWVKDYHDFRPPRQVSHFLFDWLRQDFURVVDOOUHJLRQVZKLFKSURYLGHDUPHUEDVLV

IRUVXEQDWLRQDOFRPSDULVRQV+RZHYHUWKHVSHFLFDWLRQVIRUVRPHSURGXFWVPD\QRW

be identical in the different regions because of the options given to price collectors to

GHWHUPLQHH[DFWO\ZKLFKSURGXFWLVWREHSULFHGZLWKLQDEURDGVHWRISDUDPHWHUV7KH

JUHDWHUWKHH[WHQWRIQDWLRQDORUDWOHDVWPXOWLUHJLRQDOVSHFLFDWLRQVIRUSURGXFWVWKH

easier it is to compare price levels among regions.

,QWKH3KLOLSSLQHV&3,GLIIHUHQWQXPEHUVRISURGXFWVDUHSULFHGLQGLIIHUHQWUHJLRQV

ZLWKWKHQXPEHURILQGLYLGXDOSURGXFWVLQFOXGHGLQWKHEDVNHWUDQJLQJIURPDORZRI

SURGXFWVLQ%DWDQHVWRDKLJKRILQ1HJURV2FFLGHQWDODQLODVEDVNHWFRQWDLQV

products). here is a large degree of product overlap among the regions even though

WRVRPHH[WHQWWKHSURYLQFHVVSHFLHGWKHLURZQPDUNHWEDVNHWVLQWKH&3,*LYHQ

the distinct consumption patterns of each of the region the number of products in the

3KLOLSSLQHV&3,EDVNHWWRWDOOHG+RZHYHULQOLHXRIWKHEDVLFFULWHULRQIRULQFOXVLRQ

LQWKHVXEQDWLRQDO333WKDWLVWKHSURGXFWPXVWEHSULFHGE\DWOHDVWWZRUHJLRQVRQO\

DWRWDORILWHPVRUDERXWRIWKHWRWDO&3,SURGXFWVIRUWKHHQWLUH3KLOLSSLQHVLV

included in the computations.

C. Subnational PPP Aggregation

$IWHURUJDQL]LQJ WKHSULFHDQGZHLJKWVGDWDDQGGHWHUPLQLQJ WKHSURGXFWRYHUODSVFRPHV

the estimation of subnational at different levels that include elementary and higher

level aggregation.



24/41

1. Elementary Index Aggregation

&DOFXODWLRQRIWKHORZHVWOHYHOSULFHUHODWLYHVLVFDOOHGHOHPHQWDU\DJJUHJDWLRQ$WWKDW

OHYHODOODJJUHJDWLRQLVGRQHXQZHLJKWHG7KLVLVWKHSURGXFWOHYHOLQWKH&3,DQGWKH

EDVLFKHDGLQJOHYHOLQWKH,&3FDOFXODWLRQ,QWKLVVWXG\WKH&RXQWU\3URGXFW'XPP\&3'LQGH[LVXVHGLQHOHPHQWDU\DJJUHJDWLRQ&XUUHQWO\WKHHOHPHQWDU\DJJUHJDWLRQ

LVFRQGXFWHGDWWKHGLJLWOHYHOVXEJURXSVFDWHJRULHV7KHGLJLWOHYHODJJUHJDWLRQ

8 categories) is planned for the future.

7KHEDVLFGDWDVHWIRUWKH&3'FDOFXODWLRQZDVDPDWUL[RISULFHVIRUDOOSULFHGSURGXFWV

ZLWKLQHDFKUHJLRQ2EYLRXVO\WKHUHZHUHJDSVLQWKHPDWUL[EHFDXVHLWZDVQRWSRVVLEOH

to obtain prices in every region for every product due to the unavailability of some

products in some regions and variations in the number of products priced across regions.

he underlying model for the C is multiplicative and assumes that prices vary by

SURGXFWZLWKLQUHJLRQVDWWKHVDPHUDWHDFURVVDOOUHJLRQVDQGWKDWSULFHVYDU\DPRQJ

regions at the same rate across all products.

7KH&3'LQGH[LVQRUPDOO\XVHGLQLQWHUQDWLRQDOVSDWLDOFRPSDULVRQVKRZHYHUIRUWKLV

VWXG\WKH&3'IRUWKHFRPELQHGVSDWLDODQGWHPSRUDOHOHPHQWDU\DJJUHJDWLRQZDVXVHG

7KH&3'LQGH[UVWLQWURGXFHGE\6XPPHUVFDQEHSUHVHQWHGLQWZRHTXLYDOHQW

IRUPVZLWKLQWHUFHSWDQGZLWKRXW7KHUHJUHVVLRQHTXDWLRQIRUWKH&3'FDQEHZULWWHQDV

lnp y xcp cp cp cp= = + )

ZKHUHpcp = price of product p in country c

Dcj and Dpi = country and product dummies

p and c = number of products and countries respectively.

x Dc Dc Dp Dp Dpcp Nc Np

Nc Np

T

=

=

2 1 2

2 1 2

... ...

... ... 4)

,QPDWUL[QRWDWLRQE\VWDFNLQJLQGLYLGXDOREVHUYDWLRQVWKLVFDQEHZULWWHQDV

y X = + )

1RWHWKDWWKHUVWFRXQWU\GXPP\LVGURSSHGIURPWKHV\VWHPEHFDXVHPDWUL[LVRIUDQN

1S1F8,QIDFWDQ\YDULDEOHIURPWKHV\VWHPFDQEHGURSSHGDQGGURSSLQJWKHUVW

FRXQWU\VGXPP\VLPSO\PDNHVLWWKHEDVHFRXQWU\

8 The sum o country dummies equals the sum o product dummies, so one dummy has to be dropped.



25/41

he solution is given under the conditions of independently and identically distributed

UDQGRPGLVWXUEDQFHVE\

X X X y= ( )

T T1

)

,QDGGLWLRQRQHSURGXFWYDULDEOHVD\WKHUVWSURGXFWGXPP\FDQEHGURSSHGDQGDQLQWHUFHSWFDQEHLQWURGXFHG7KLVLVWKHVHFRQGIRUPRIWKH&3',QWKLVFDVH

=

=

x c c p p

c

cp Nc Np

Nc

2 2

2 2

1... ...

... .. intercept

.. NpT

y X + = 8)

he solutions of equations ) and 8) are on the country and product price relatives that

DUHLGHQWLFDOXSWRDVFDODULQWKHVHWZRFDVHV,QWKHFDVHZLWKLQWHUFHSW

j j

i i

c

c

i Np j Nc

=

=

= +

= =

1

2 2

intercept

intercept

for

,

... , ...

ZKHUH Ji and DjDUHWKHSURGXFWFRHIFLHQWVIRUSURGXFWiand country j respectively inWKHFDVHZLWKLQWHUFHSW

ne useful output from the C model is a set of estimated prices for each productIRUHDFKUHJLRQ7KHVHSULFHVSURYLGHDQHVWLPDWHRIZKDWWKHSULFHVZRXOGEHLIWKH

UHODWLRQVKLSVVHWRXWLQWKHPRGHOKHOGLQSUDFWLFH7KHGLIIHUHQFHVEHWZHHQREVHUYHG

SULFHVDQGWKHVHPRGHOHGSULFHVFDQSURYLGHDQLQGLFDWLRQRISRVVLEOHSUREOHPVZLWK

the prices provided by a region. arge differences indicate possible problems e.g.

EHFDXVHWKHSULFHVIRUWKHVDPHSURGXFWYDU\VLJQLFDQWO\DFURVVUHJLRQVRUEHFDXVH

WKHUHODWLYLWLHVEHWZHHQSULFHVRISURGXFWVZLWKLQDUHJLRQYDU\VLJQLFDQWO\FRPSDUHG

ZLWKWKRVHLQRWKHUUHJLRQV7ZRRIWKHPDMRUDGYDQWDJHVRIWKH&3'PHWKRGLQFOXGH

estimation of sampling errors for s and calculation of patterns of residuals that can

EHXVHGWRLQGLFDWHSRWHQWLDOSUREOHPVZLWKWKHFRQVLVWHQF\RULQFRQVLVWHQF\RISULFHV

collected by an economy for a particular basic heading.

RUWKLVSURMHFWWKH&3'ZDVXVHGDVWKHFRPELQHGVSDWLDOWHPSRUDOPRGHO,WPHDQV

that the country in the original C should be understood as the country region at

WLPHSHULRG$FFRUGLQJO\WKHQXPEHURIFRXQWU\UHJLRQGXPPLHVZLOOEHHTXDOWR

representing the number of regions in the hilippines multiplied by the number of time

9 Note that the sign (c) does not mean transpose. Sign ( T) is used or that purpose.



26/41

SHULRGV>TXDUWHUV[\HDUVTXDUWHUV@7KLVYDULHW\RIWKH&3'FRXOGEHFDOOHG

WKH&RXQWU\7LPH3URGXFW'XPP\RU&73'

7KH&73'PHWKRGLVDPXOWLODWHUDODSSURDFKZKLFKPHDQVWKH333VDUHHVWLPDWHG

VLPXOWDQHRXVO\IRUDOOUHJLRQVZLWKLQWKH3KLOLSSLQHVDQGDOOWLPHSHULRGV7KH333Vgenerated by the C model are transitive as it basically carries the same principle

DQGFRQFHSWVDVLQWKHXVXDO&3'PRGHO,QRWKHUZRUGVWKHPHDVXUHRIWKHUHODWLRQVKLS

EHWZHHQDQ\SDLURIUHJLRQVIRUDSURGXFWV333LVWKHVDPHQRPDWWHUZKHWKHUWKH

UHJLRQVDUHFRPSDUHGGLUHFWO\RUYLDDWKLUGUHJLRQZLWKLQWKH3KLOLSSLQHV7KHVDPH

FKDUDFWHULVWLFKROGVIRUWKHWHPSRUDOGLPHQVLRQRIWKHPRGHO,QRWKHUZRUGVWKH&73'

puts price levels of all the regions and from all time periods on the same scale and

makes them directly comparable.

2. Higher Level Aggregation: The Index Number Issue

7KHLQGH[QXPEHUWKHRU\UHFRPPHQGVFKDLQLQGH[HVIRUWKH&3,DVEHWWHUDSSUR[LPDWLQJWKH'LYLVLDLQGH[7KH'LYLVLDLQGH[LVGHWHUPLQHGLIWKHSULFHVDQGTXDQWLWLHVFDQEH

SUHVHQWHGDVFRQWLQXRXVIXQFWLRQVRIWLPH7KH'LYLVLDLQGH[GHFRPSRVHVYDOXHSULFH

PXOWLSOLHGE\TXDQWLW\LQWRWZRFRPSRQHQWVSULFHDQGTXDQWLW\LQGH[HVUHVSHFWLYHO\7KH

YDOXHLVGLIIHUHQWLDWHGZLWKUHVSHFWWRWLPHWRREWDLQWKHWZRFRPSRQHQWVDSULFHFKDQJH

and a quantity change. Because in practice prices can be recorded only at discrete

LQWHUYDOVDQGZHLJKWVQRUPDOO\FDQEHREWDLQHGDWHYHQPRUHGLVFUHWHLQWHUYDOVRQO\

DQDSSUR[LPDWLRQWRWKH'LYLVLDLQGH[FDQEHPDGH7KXVDQDQQXDOFKDLQLQGH[PD\

EHUHJDUGHGDVDGLVFUHWHDSSUR[LPDWLRQWRD'LYLVLDLQGH[$YDULHW\RILQGH[QXPEHU

IRUPXODHFDQEHXVHGIRUWKLVDSSUR[LPDWLRQEXWXVXDOO\WKH7|UQNTYLVWRULVKHULV

UHFRPPHQGHGDVLQGLYLGXDOFKDLQLQGH[HVRUSUDFWLFDOUHDVRQVWKH/DVSH\UHVIRUPXOD

LVRIWHQXVHGLQWKHFKDLQLQGH[DVLWFRXOGEHGLIFXOWWRHVWLPDWHWKHFXUUHQW\HDUVH[SHQGLWXUHV1RUPDOO\GLIIHUHQFHEHWZHHQFKDLQ/DVSH\UHVDQGFKDLQ7|UQNTYLVWRU

LVKHULQGH[HVLVUDWKHUVPDOOHYHQWKRXJKWKHELDVIURPXVLQJWKH/DVSH\UHVLQGH[LV

V\VWHPDWLFDFFXPXODWLQJDQGLVDURXQGSHU\HDU

RUWKHFXUUHQWH[HUFLVHWKHLQLWLDOLQWHQWLRQZDVWRXVHWKHFKDLQ7|UQNTYLVWLQGH[

+RZHYHUDVSUHYLRXVO\PHQWLRQHGWKHH[SHQGLWXUHVZHLJKWVGHULYHGIRUHDFKPDMRU

FRPPRGLW\DUHRQO\DYDLODEOHIURPWKH,(6ZKLFKLVFRQGXFWHGRQFHHYHU\\HDUV

$WWKHWLPHRI WKHVWXG\DQQXDOH[WUDSRODWLRQRIZHLJKWVIURPWKHSHULRGVLV

VWLOOEHLQJSURFHVVHG+HQFHIRUWKLVVWXG\WKHV\VWHPRIZHLJKWVIURP\HDUZDV

used as a substitute. ven though the substitution effect cannot be incorporated into the

FDOFXODWLRQVWKLVV\VWHPRIZHLJKWVLVFRQVLVWHQWZLWKWKHRQHXVHGLQWKHRIFLDO&3,DQGWKXVLVQRWLUUHOHYDQWIRUSXUSRVHVRIWKLVVWXG\,QFRUSRUDWLQJWKHZHLJKWVIRU\HDUV

DQGDVZHOODVHVWLPDWLQJWKHZHLJKWVIRUUHPDLQLQJ\HDUVWKURXJKLQWHUSRODWLRQ

FRXOGEHH[SORUHGLQWKHIXWXUH7KLVZLOODOORZIRUWKHHVWLPDWLRQRI333XVLQJWKHFKDLQ

7|UQNTYLVWLQGH[7KHFXUUHQWLQGH[FDQEHGHVFULEHGDVWKHJHRPHWULF/DVSH\UHVWKH

ZHLJKWHGJHRPHWULFDYHUDJHRIWKHFXUUHQWWREDVHSHULRGSULFHUHODWLYHVXVLQJWKHYDOXH

VKDUHVRIWKHEDVHSHULRGDVZHLJKWV



27/41

VII. Major Results and Findings o the Study

5HVXOWVVKRZVWKDWWKHWHPSRUDOEHKDYLRURISULFHOHYHOVGHULYHGIURPWKHVWXG\LVTXLWH

VLPLODUWRWKHRIFLDO&3,ZLWKRQHLPSRUWDQWGLIIHUHQFHLQRXUWLPHVHULHVERWKUHJLRQDO

DQGQDWLRQDO&3,VDUHORZHUWKDQWKHRIFLDOHVWLPDWHE\XSWRRYHUWKH\HDUVSDQLJXUH3DUWLDOO\WKLVFDQEHH[SODLQHGE\WKHJHRPHWULFQDWXUHRIWKHLQGH[

XVHGWKHJHRPHWULF/DVSH\UHVEHFDXVHWKHJHRPHWULFLQGH[ZLOOEHDOZD\VEHORZWKH

/DVSH\UHVLQGH[+RZHYHUVRPHIXUWKHULQYHVWLJDWLRQLVQHHGHGLQRUGHUWRH[SODLQWKH

differences in full.

Figure 1: Estimated Quarterly Price Indexes versus Ocial Consumer Price Index,

20052010

1.000

1.050

1.100

1.150

1.200

1.250

1.300

1.350

200

5Q1

200

5Q2

200

5Q3

200

5Q4

200

6Q1

200

6Q2

200

6Q3

200

6Q4

200

7Q1

200

7Q2

200

7Q3

200

7Q4

200

8Q1

200

8Q2

200

8Q3

200

8Q4

200

9Q1

200

9Q2

200

9Q3

200

9Q4

201

0Q1

201

0Q2

201

0Q3

201

0Q4

Estimate (Philippines)Ocial (Philippines)

Estimate (Manila)Ocial (Manila)

Source: Authors estimates.

7KHUHVXOWVRIWKHFXUUHQWH[HUFLVHDWWKH3&(DQGPDMRUDJJUHJDWHVOHYHODVZHOODV

the aggregates of nonfood groups are provided in graphical and tabular forms in the

$SSHQGL[7DEOHV7KHSHULRGVDUHORFDWHGRQWKHKRUL]RQWDOD[LV7KHSULFHOHYHO LVRQ

WKHYHUWLFDOD[LV7KHUHJLRQDOSULFHLQGH[HVDUHSORWWHGE\TXDUWHUVWDUWLQJIURPWKHUVWTXDUWHURIDQGQLVKLQJDW(DFKUHJLRQLVSUHVHQWHGE\DQLQGLYLGXDO

OLQHRUH[DPSOHWKHORZHVWOLQHLQ$SSHQGL[7DEOHDQG$SSHQGL[LJXUHFRUUHVSRQGV

to egion across all quarters from 00 to 4 00. he reference point is the

price level in the hilippines in 00. hus the anila price level in 00 is

RIWKHQDWLRQDOSULFHOHYHO7RZDUGWKHHQGRIWKHSHULRGLQWKHQDWLRQDOSULFH

level stands at of the reference point. anila price level rises in 4 00 to 4



28/41

of the reference point. At the same time the price level in egion rose from 00 of

WKHUHIHUHQFHWKH3KLOLSSLQHVLQLQWRLQUHPDLQLQJ

virtually identical to the national price level over the period. hese numbers indicate that

WKHRYHUDOOLQDWLRQLQ5HJLRQZDVDQGLQWKHSULFHOHYHOLQUHJLRQ

ZDVORZHUWKDQLQDQLOD

([DPLQLQJWKHJUDSKVDQGWDEOHVVKRZVWKDWWKHUHDUHJHQHUDOO\ODUJHGLIIHUHQFHVLQ

SULFHOHYHOVLQVRPHUHJLRQVZLWKPRVWEXWQRWDOOUHJLRQVKDYLQJORZHUSULFHOHYHOV

than anila. onetheless the price level in anila during the period has been generally

JURZLQJVORZHUWKDQLQWKH3KLOLSSLQHVDERXWYHUVXVDERXWZKLFKLV

FRQVLVWHQWZLWKWKHQDWLRQDO&3,7KHSULFHOHYHOLQDQLODZDVRIWKHQDWLRQDOOHYHO

LQDQGKDVGHFUHDVHGWRRIWKHQDWLRQDOOHYHOLQ+RZHYHU

DOOWKHSULFHPRYHPHQWVDUHKLJKO\FRUUHODWHGDFURVVDOOUHJLRQVZKLFKDUHSUREDEO\

LQGLFDWLRQVRIHIFLHQF\RIWKHPDUNHW$QLPSRUWDQWWRSLFRIWKHIXWXUHZRUNZRXOGEHWR

WHVWWKHVHUHVXOWVE\LQFRUSRUDWLQJVXEVWLWXWLRQHIIHFWVRIFKDQJLQJH[SHQGLWXUHSDWWHUQV

7KHUHDUHREVHUYHGVLJQLFDQWGLIIHUHQFHVLQRYHUDOOSULFHOHYHOVLQWKHUHJLRQV

UDQJLQJIURPDQGEHORZWRDQGDERYHWKHQDWLRQDODYHUDJHIRU3&(7KH

relatively higher price level in C could in part be attributed to the high housing costs.

([FOXGLQJKRXVLQJWKHSULFHOHYHOLQDQLODZDVFORVHWRWKHQDWLRQDODYHUDJHEHLQJRQO\

above the average in 4 00. he price difference can be much higher for individual

components.

,QFRPHGDWDIURPWKH,(6FDQEHXVHGLQFRQMXQFWLRQZLWKWKHSULFHOHYHOVWRLQGLFDWH

VRPHUHODWLYHVWDQGDUGVRIOLYLQJDFURVVWKHUHJLRQV7KHIROORZLQJWDEOHVKRZVWKH

regions in order of their per capita incomes both in nominal and real terms. ote that the

VPDOOGLIIHUHQFHVDUHXQOLNHO\WREHVLJQLFDQWEHFDXVHWKHVWDQGDUGHUURUVLQWKH,(6GDWDDUHPXFKODUJHUDWWKHUHJLRQDOOHYHOWKDQIRUWKH3KLOLSSLQHVDVDZKROH

2QHRIWKHDLPVRIWKLVVWXG\LVWRGHWHUPLQHZKHWKHULWZRXOGEHSRVVLEOHWRXVH

information on differences in regional price levels to adjust the price levels in a major

region to annual national average prices and so avoid having to collect prices in all

UHJLRQVIRUWKH,&3,WVHHPVWKDWWKHUHLVJHQHUDOO\KLJKFRQVLVWHQF\EHWZHHQWKHUHVXOWV

RIWKHFXUUHQWH[HUFLVHDQG,&3LQWHUPVRIWKHFDSLWDOFLW\SULFHOHYHOV,QWKH,&3

WKHSULFHOHYHORIDQLODIRUWKHVRFDOOHGVKRSLWHPVZDVIRXQGWREHDERXWKLJKHU

WKDQWKHQDWLRQDODYHUDJHZKLFKLVTXLWHFRQVLVWHQWZLWKRXUHVWLPDWHIRUVLPLODULWHPV



29/41

Table4:PerCapitaExp

enditures,PhilippinesNominalandReal(Philippines=1.0

)

MajorGroup/Region

Manila

R1

R2

R3

R4A

R5

R6

R7

R8

R9

R10

R11

R12

CAR

RMMC

ARAGA

R4B

PHI

NominalRelativeExpenditures

PersonalConsumptionExpe

nditure

2.3

0

0.8

4

0.8

1

0.9

6

1.1

0

0.8

1

0.8

2

0.7

1

0.6

4

0.5

9

0.7

0

0.7

7

0.6

7

0.9

8

0.3

8

0.6

1

0.6

8

1.0

0

Food,

BeveragesandTobacco

1.8

5

0.9

3

0.9

6

1.0

2

1.1

0

0.9

2

0.8

8

0.7

8

0.7

4

0.6

9

0.7

6

0.8

3

0.7

5

1.0

0

0.4

8

0.7

2

0.7

6

1.0

0

Nonfood

2.7

5

0.7

5

0.6

5

0.9

0

1.1

1

0.7

0

0.7

6

0.6

4

0.5

5

0.4

8

0.6

4

0.7

2

0.5

8

0.9

5

0.2

8

0.5

1

0.6

0

1.0

0

ClothingandFootwear

1.9

8

1.0

5

0.8

7

1.0

0

1.0

8

0.7

7

0.9

4

0.6

0

0.5

1

0.6

0

0.8

6

0.9

2

0.8

6

0.9

7

0.4

5

0.6

9

0.8

6

1.0

0

HousingandRepairs

3.3

7

0.6

0

0.5

5

0.7

8

1.0

2

0.6

0

0.6

5

0.6

2

0.4

9

0.4

1

0.5

4

0.5

8

0.4

2

0.9

6

0.2

4

0.3

8

0.5

4

1.0

0

Fuel,Light,andWater

2.3

3

0.8

6

0.7

6

1.0

6

1.1

5

0.7

6

0.7

9

0.6

8

0.6

3

0.5

3

0.7

2

0.6

9

0.6

2

0.9

1

0.3

4

0.5

9

0.6

1

1.0

0

Services

2.7

9

0.7

5

0.6

3

0.8

9

1.1

9

0.6

8

0.7

5

0.6

3

0.5

0

0.4

5

0.6

1

0.7

5

0.5

7

0.9

7

0.1

7

0.4

6

0.5

3

1.0

0

MiscellaneousItems

1.9

6

0.8

5

0.7

6

0.9

9

1.1

3

0.8

5

0.9

0

0.6

8

0.7

0

0.6

2

0.8

0

0.9

1

0.8

4

0.9

4

0.4

7

0.7

4

0.7

9

1.0

0

RealRelativeExpenditures

PersonalConsumptionExpe

nditure

2.0

1

0.8

5

0.9

0

0.9

5

1.1

4

0.8

5

0.9

0

0.7

5

0.7

2

0.6

6

0.8

0

0.8

9

0.7

4

1.0

0

0.4

3

0.6

5

0.7

0

1.0

0

Food,

BeveragesandTobacco

1.7

1

0.9

3

1.0

2

0.9

8

1.0

6

0.9

5

0.9

5

0.8

1

0.8

4

0.7

7

0.8

2

0.9

2

0.8

1

0.9

6

0.5

2

0.7

4

0.7

2

1.0

0

Nonfood

2.2

6

0.8

0

0.8

0

0.9

3

1.2

1

0.7

6

0.8

5

0.7

0

0.6

2

0.5

7

0.8

0

0.8

8

0.6

9

1.0

5

0.3

6

0.5

8

0.7

0

1.0

0

ClothingandFootwear

1.7

6

1.1

4

1.0

1

1.0

4

1.0

7

0.7

8

1.0

1

0.6

0

0.5

2

0.6

1

0.9

3

0.9

8

0.9

7

1.0

0

0.4

7

0.7

6

0.8

5

1.0

0

HousingandRepairs

2.0

2

0.8

2

0.9

7

1.0

5

1.4

4

0.8

9

0.9

5

0.7

7

0.7

4

0.6

9

1.1

3

1.0

1

0.7

5

1.3

2

0.6

2

0.6

4

1.0

6

1.0

0

Fuel,Light,andWater

2.4

1

0.8

0

0.8

4

0.9

2

1.1

0

0.6

5

0.8

1

0.6

5

0.6

2

0.5

3

0.7

9

0.9

2

0.7

5

0.8

6

0.3

7

0.7

3

0.6

2

1.0

0

Services

2.6

2

0.7

8

0.7

0

0.8

9

1.1

8

0.7

3

0.7

9

0.6

9

0.5

5

0.5

2

0.6

5

0.8

2

0.6

2

0.9

7

0.1

7

0.4

7

0.4

8

1.0

0

MiscellaneousItems

1.9

3

0.8

6

0.8

2

0.9

4

1.1

5

0.8

1

0.9

5

0.7

0

0.7

0

0.6

2

0.8

0

0.9

4

0.8

9

0.9

1

0.4

7

0.7

2

0.7

5

1.0

0

Source:Authorsestimates.



30/41

VIII. Conclusion and Future Directions

7KHPDMRUDLPRIWKLVVWXG\LVWRORRNDWWKHSODXVLELOLW\RILQWHJUDWLQJ,&3ZLWKWKH

FRXQWU\V&3,DQGFRPSXWLQJVXEQDWLRQDO333XVLQJUHJLRQDOSULFHVDQGH[SHQGLWXUH

ZHLJKWVIURPWKH&3,$VFDQEHVHHQIURPWKHJUDSKVRIWKHUHJLRQDOSULFHOHYHOVE\SURGXFWJURXSWKHUHODWLRQVKLSVEHWZHHQSULFHOHYHOVLQHDFKRIWKHUHJLRQVLQWKH

3KLOLSSLQHVDUHUHDVRQDEO\FRQVLVWHQWIRUHDFKSURGXFWJURXS7KHFRQFHSWXDOIUDPHZRUN

SURYLGHGE\WKH,&3ZDVXVHGWRSURGXFH333VIRUHDFKRIWKHUHJLRQVLGHQWLHG

IRUWKLVUHSRUW7KHRXWSXWVZLOOEHXVHIXOIRUDQ\RQHLQWHUHVWHGLQVWXG\LQJWKHUHJLRQDO

incidence of poverty by enabling the national poverty lines to be adjusted for regional

SULFHGLIIHUHQFHVZKLFKDUHVXEVWDQWLDOLQVRPHFDVHV7KH\DUHDOVRXVHIXOIRUVWXG\LQJ

differences in overall regional standards of living.

,GHDOO\WKHH[SHQGLWXUHZHLJKWVVKRXOGEHFRQVLVWHQWZLWKWKHQDWLRQDODFFRXQWVVRWKDW

WKHUHJLRQDO333VZRXOGEHFRQVLVWHQWZLWKWKHQDWLRQDORQHVSURGXFHGIRUWKH,&3

+RZHYHULQWKHDEVHQFHRIVXFKGDWDWKH3KLOLSSLQHV&3,XVHGGDWDIURPWKH,(6IRUHVWLPDWLQJZHLJKWV:KLOHLWVVFRSHLVQRWLGHQWLFDOWRWKDWRIWKHQDWLRQDODFFRXQWVLW

SURYLGHGUHOLDEOHUHJLRQDOZHLJKWVIRUHVWLPDWLQJDUHJLRQDOVSOLWRIWKHQDWLRQDOHVWLPDWHV

RIKRXVHKROGQDOFRQVXPSWLRQH[SHQGLWXUH

$QRWKHUDLPRIWKLV VWXG\ZDVWRQGRXWZKHWKHUSULFHVFROOHFWHG IRUWKH&3,FRXOGEH

used to provide reliable estimates of price levels of a range of products in each region

DQGLIWKHUHODWLRQVKLSVEHWZHHQWKHVHSULFHOHYHOVSURYHGWREHFRQVLVWHQWWKHQWKH

GDWDFROOHFWLRQSURFHVVIRUWKH,&3FRXOGEHVXEVWDQWLDOO\UHGXFHGZLWKFRQVHTXHQWFRVW

VDYLQJV7KHSURFHVVZRXOGLQYROYHFROOHFWLQJSULFHVIRUWKH,&3LQDKDQGIXORIUHJLRQV

RUDWDQH[WUHPHRQO\LQWKH1DWLRQDO&DSLWDO5HJLRQDQGWKHQXVHWKHUHODWLRQVKLSV

LGHQWLHGLQWKH&3,SULFHGDWDWRDGMXVWWKRVHSULFHVWRQDWLRQDODYHUDJHSULFHVIRUWKH

,&3UHIHUHQFH\HDU7KHNH\OHVVRQIRUWKH,&3LVWKDWFROOHFWLRQFRVWVFRXOGEHUHGXFHG

VLJQLFDQWO\LIWKHGDWDVHWVRISULFHVFROOHFWHGIRUWKH&3,LQHDFKFRXQWU\FDQEHXVHGWR

adjust prices in one or more of the major cities to national average prices. he current

VWXG\XVLQJGDWDFROOHFWHGIRUWKH3KLOLSSLQHV&3,KDVVKRZQWKDWVXFKDQDSSURDFKLV

IHDVLEOHSURYLGHGWKDWWKHSULFHVGDWDDUHFODVVLHGE\UHJLRQDUHGHQHGFRQVLVWHQWO\

across regions and can be easily accessed and manipulated.

7KHFXUUHQWVWXG\ZDVGHVLJQHGWRGHWHUPLQHWKHIHDVLELOLW\RIXVLQJWKH&3,SULFHV

GDWDVHWWRFDOFXODWHUHJLRQDOSULFHOHYHOVZLWKWKHGXDODLPRISURYLGLQJDQDO\VWVZLWKGDWD

required for regional price level comparisons and studies into the incidence of poverty

LQGLIIHUHQWUHJLRQVWKHUHE\UHGXFLQJWKHHIIRUWLQYROYHGLQFROOHFWLQJSULFHVIRUWKH,&3

7KHRXWFRPHKDVEHHQYHU\SRVLWLYHDQGIHHGEDFNZLOOEHUHTXHVWHGIURPDQDO\VWVRQ

WKHXVHIXOQHVVRIWKHYDULRXVGDWDVHWVDQGWKHLUVXJJHVWLRQVIRULPSURYHPHQWVDQGRU

H[WHQVLRQVIRUGDWDWKDWDUHFXUUHQWO\DYDLODEOH



31/41

,WLVFOHDUWKDWLPSURYLQJERWKWKHSULFHDQGH[SHQGLWXUHGDWDLVDQLPSRUWDQWVWHSLQ

SURGXFLQJPRUHUREXVWUHJLRQDO333V,GHDOO\WKHSURGXFWVEHLQJSULFHGIRUWKH&3,ZLOO

be selected so that they overlap in different regions and can be easily compared across

UHJLRQV5HJLRQDOH[SHQGLWXUHVFRQVLVWHQWZLWKWKHQDWLRQDODFFRXQWVDUHGHVLUDEOHLQ

RUGHUWRDFKLHYHFRPSOHWHFRQVLVWHQF\EHWZHHQWKHLQWHUQDWLRQDOGDWDRQ333VXVHGLQFRPSLOLQJSRYHUW\OLQHVIRUFRXQWULHVDQGWKHUHJLRQDOGDWD&OHDUO\WKH,(6LVWKHNH\

dataset in this regard and studies could be undertaken to determine the best means of

PDWFKLQJWKHH[SHQGLWXUHGDWDIURPWKH,(6WRWKHFRXQWU\ZLGHQDWLRQDODFFRXQWVGDWD

IRUKRXVHKROGQDOFRQVXPSWLRQH[SHQGLWXUHVHUUHTXLUHPHQWVIRUUHJLRQDO333VVKRXOG

also be assessed in detail particularly for poverty analysis.

$VGHVFULEHGWKHFXUUHQWFDOFXODWLRQKDVDQXPEHURIOLPLWDWLRQVZKLFKDUHSODQQHGWREH

DGGUHVVHGLQWKHQH[WVWDJHRIWKLVZRUN7KHVHOLPLWDWLRQVLQFOXGHWKHIROORZLQJ

L &XUUHQWO\WKHHOHPHQWDU\DJJUHJDWLRQLVFRQGXFWHGDWWKHGLJLWOHYHO

VXEJURXSVFDWHJRULHV7RLPSURYHSUHFLVLRQWKHGLJLWOHYHODJJUHJDWLRQ8 categories) is planned.

LL ,QFRUSRUDWLQJZHLJKWVIRUDQGLQWKHFDOFXODWLRQDQGHVWLPDWLQJ

WKHZHLJKWVIRUUHPDLQLQJ\HDUVWKURXJKLQWHUSRODWLRQDUHLQWHQGHG7KLV

ZLOOHQDEOHWKHFKDLQ7|UQNTYLVWLQGH[WREHXVHGDQGWRDFFRXQWSURSHUO\

for the substitution effect.

LLL RUHZRUNLVQHHGHGLQRUGHUWRH[SODLQWKHIDFWRUVRIGLIIHUHQFHVEHWZHHQ

WKH$'%FDOFXODWLRQDQGWKHRIFLDO&3,,QSDUWLFXODUWKHSULFHGDWDVWDUWLQJ

from 000 need to be incorporated into the analysis.

LY 7KHUHVXOWVVKRZWKDWDOOUHJLRQDOSULFHPRYHPHQWVDUHKLJKO\FRUUHODWHG

ZKLFKLVSUREDEO\DQLQGLFDWLRQRIHIFLHQF\RIWKHPDUNHWV+RZHYHU

WKHVXEVWLWXWLRQHIIHFWVFDQQRWEHVWXGLHGULJKWQRZDVWKHRQO\DYDLODEOH

H[SHQGLWXUHVWUXFWXUHLVIURP,QFRUSRUDWLQJVXEVWLWXWLRQHIIHFWVRI

FKDQJLQJH[SHQGLWXUHSDWWHUQVVKRXOGLPSURYHRXUXQGHUVWDQGLQJRIPDUNHW

behavior.



32/41

Appendix: Tables and Charts by Major Commodity Groups

Appendix Table 1 and Appendix Figure 1: Personal Consumption Expenditure

Quarterly Regional Price Index, 20052010

Minimum 0.87Maximum 1.42MinMax Ratio 0.61

0.60

0.70

0.80

0.90

1.00

1.10

1.20

1.30

1.40

1.50

2005Q1

2005Q2

2005Q3

2005Q4

2006Q1

2006Q2

2006Q3

2006Q4

2007Q1

2007Q2

2007Q3

2007Q4

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4

PriceLev

els:PhilippinesQ12005=1.0

0

Period

Manila R1 R2 R3 R4A R5R6 R7 R8 R9 R10 R11R12 CAR ARMM CARAGA R4B PHI

Philippines Q1 2005 = 1.00

Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 CAR ARMM CARAGA R4B PHI

2005Q1 1.15 1.00 0.90 0.98 0.98 0.95 0.91 0.95 0.92 0.87 0.89 0.87 0.87 0.96 0.98 0.88 0.90 1.002005Q2 1.16 1.01 0.90 0.98 0.99 0.96 0.92 0.96 0.93 0.88 0.90 0.88 0.88 0.97 1.00 0.90 0.91 1.012005Q3 1.18 1.02 0.91 0.99 1.00 0.98 0.94 0.98 0.94 0.90 0.91 0.89 0.89 0.98 1.02 0.90 0.93 1.022005Q4 1.19 1.04 0.93 1.01 1.01 0.99 0.95 1.00 0.96 0.91 0.92 0.90 0.91 1.00 1.04 0.92 0.94 1.042006Q1 1.21 1.06 0.95 1.03 1.02 1.01 0.96 1.02 0.97 0.93 0.94 0.92 0.92 1.01 1.06 0.94 0.95 1.052006Q2 1.23 1.07 0.95 1.04 1.04 1.01 0.97 1.03 0.98 0.94 0.95 0.93 0.93 1.02 1.07 0.95 0.96 1.072006Q3 1.24 1.08 0.97 1.05 1.05 1.02 0.98 1.03 0.99 0.95 0.96 0.93 0.93 1.03 1.08 0.96 0.97 1.082006Q4 1.25 1.09 0.98 1.05 1.05 1.03 0.98 1.04 1.00 0.95 0.97 0.94 0.94 1.04 1.08 0.96 0.98 1.082007Q1 1.25 1.09 0.99 1.05 1.05 1.05 0.99 1.04 1.00 0.96 0.98 0.94 0.94 1.04 1.09 0.97 0.98 1.092007Q2 1.25 1.10 0.98 1.06 1.06 1.05 0.99 1.04 1.00 0.97 0.99 0.95 0.95 1.04 1.11 0.97 0.98 1.092007Q3 1.26 1.11 0.99 1.07 1.06 1.05 1.00 1.05 1.01 0.97 0.99 0.96 0.95 1.04 1.12 0.98 0.99 1.102007Q4 1.27 1.12 1.00 1.08 1.07 1.07 1.01 1.06 1.02 0.99 1.01 0.97 0.96 1.06 1.14 0.99 1.00 1.112008Q1 1.29 1.14 1.03 1.10 1.09 1.09 1.04 1.09 1.05 1.03 1.04 0.99 1.00 1.07 1.18 1.04 1.03 1.132008Q2 1.32 1.17 1.06 1.13 1.11 1.11 1.06 1.13 1.09 1.06 1.06 1.03 1.03 1.10 1.22 1.08 1.05 1.162008Q3 1.34 1.20 1.08 1.17 1.14 1.14 1.10 1.16 1.12 1.10 1.09 1.05 1.06 1.12 1.24 1.12 1.08 1.192008Q4 1.34 1.21 1.09 1.17 1.15 1.14 1.11 1.16 1.13 1.10 1.10 1.05 1.06 1.13 1.25 1.12 1.09 1.192009Q1 1.36 1.21 1.10 1.17 1.15 1.15 1.11 1.17 1.14 1.10 1.11 1.06 1.07 1.12 1.26 1.13 1.10 1.202009Q2 1.37 1.22 1.11 1.18 1.16 1.16 1.12 1.17 1.14 1.11 1.12 1.07 1.07 1.13 1.27 1.14 1.10 1.212009Q3 1.38 1.23 1.11 1.19 1.17 1.17 1.13 1.19 1.15 1.12 1.13 1.08 1.08 1.14 1.28 1.14 1.12 1.222009Q4 1.40 1.25 1.14 1.21 1.18 1.19 1.14 1.20 1.16 1.13 1.14 1.10 1.09 1.16 1.30 1.15 1.13 1.242010Q1 1.40 1.25 1.14 1.22 1.19 1.20 1.15 1.21 1.17 1.15 1.15 1.12 1.10 1.16 1.31 1.17 1.14 1.242010Q2 1.40 1.25 1.14 1.22 1.19 1.21 1.15 1.21 1.17 1.14 1.15 1.13 1.11 1.17 1.32 1.17 1.14 1.252010Q3 1.40 1.26 1.15 1.23 1.20 1.21 1.15 1.22 1.17 1.15 1.16 1.14 1.11 1.17 1.34 1.18 1.15 1.252010Q4 1.42 1.27 1.17 1.23 1.21 1.22 1.16 1.23 1.18 1.16 1.16 1.14 1.11 1.18 1.36 1.18 1.16 1.26




33/41

Appendix Table 2 and Appendix Figure 2: Food, Beverages, and Tobacco



0.60

0.70

0.80

0.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

2005Q1

2005Q2

2005Q3

2005Q4

2006Q1

2006Q2

2006Q3

2006Q4

2007Q1

2007Q2

2007Q3

2007Q4

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4

PriceLevels:PhilippinesQ12005=1.0

0

Period



Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 CAR ARMM CARAGA R4B PHI

2005Q1 1.08 1.00 0.96 1.04 1.02 0.97 0.93 0.98 0.90 0.86 0.94 0.92 0.90 1.05 1.02 0.94 0.95 1.002005Q2 1.08 1.01 0.97 1.05 1.02 0.97 0.94 0.99 0.91 0.87 0.96 0.93 0.91 1.06 1.05 0.96 0.96 1.012005Q3 1.10 1.02 0.98 1.06 1.03 0.99 0.96 1.01 0.92 0.89 0.97 0.94 0.92 1.07 1.07 0.96 0.98 1.022005Q4 1.12 1.04 0.99 1.07 1.05 1.00 0.97 1.03 0.95 0.91 0.98 0.95 0.93 1.09 1.09 0.98 1.00 1.042006Q1 1.14 1.05 1.01 1.09 1.06 1.02 0.98 1.04 0.96 0.93 1.00 0.96 0.95 1.10 1.11 1.01 1.01 1.052006Q2 1.15 1.06 1.02 1.11 1.07 1.02 0.99 1.06 0.97 0.93 1.02 0.98 0.96 1.11 1.13 1.02 1.02 1.062006Q3 1.16 1.08 1.03 1.11 1.07 1.03 1.00 1.06 0.98 0.95 1.03 0.98 0.97 1.12 1.13 1.03 1.03 1.072006Q4 1.18 1.08 1.05 1.12 1.08 1.04 1.01 1.07 0.99 0.95 1.04 0.98 0.98 1.13 1.14 1.03 1.04 1.082007Q1 1.17 1.09 1.05 1.12 1.08 1.06 1.02 1.07 1.00 0.96 1.05 1.00 0.99 1.13 1.15 1.04 1.05 1.092007Q2 1.17 1.10 1.04 1.12 1.08 1.06 1.02 1.07 1.00 0.97 1.06 1.01 0.99 1.12 1.17 1.04 1.05 1.092007Q3 1.18 1.10 1.05 1.14 1.09 1.06 1.03 1.08 1.00 0.97 1.07 1.01 1.00 1.13 1.19 1.04 1.06 1.102007Q4 1.21 1.13 1.07 1.16 1.11 1.09 1.05 1.09 1.02 0.99 1.08 1.03 1.02 1.15 1.22 1.06 1.08 1.122008Q1 1.23 1.15 1.10 1.19 1.14 1.12 1.08 1.14 1.06 1.06 1.12 1.07 1.06 1.18 1.26 1.13 1.11 1.152008Q2 1.27 1.19 1.14 1.24 1.17 1.15 1.12 1.19 1.11 1.09 1.16 1.12 1.11 1.21 1.31 1.19 1.15 1.192008Q3 1.30 1.23 1.18 1.28 1.20 1.18 1.16 1.24 1.15 1.13 1.20 1.16 1.15 1.25 1.34 1.23 1.18 1.23

2008Q4 1.31 1.25 1.19 1.30 1.23 1.19 1.19 1.24 1.17 1.14 1.22 1.17 1.16 1.26 1.36 1.23 1.20 1.242009Q1 1.34 1.26 1.21 1.31 1.24 1.21 1.20 1.26 1.19 1.15 1.25 1.20 1.18 1.26 1.38 1.26 1.21 1.262009Q2 1.35 1.27 1.22 1.32 1.25 1.22 1.20 1.27 1.20 1.16 1.25 1.20 1.18 1.27 1.39 1.27 1.22 1.272009Q3 1.35 1.28 1.23 1.33 1.26 1.23 1.21 1.29 1.20 1.16 1.25 1.21 1.19 1.29 1.40 1.26 1.24 1.282009Q4 1.40 1.31 1.27 1.37 1.29 1.26 1.23 1.30 1.21 1.18 1.27 1.22 1.20 1.32 1.42 1.27 1.26 1.312010Q1 1.38 1.30 1.27 1.36 1.29 1.27 1.24 1.31 1.23 1.20 1.29 1.25 1.21 1.32 1.44 1.30 1.27 1.312010Q2 1.38 1.30 1.26 1.36 1.29 1.27 1.24 1.31 1.23 1.19 1.29 1.26 1.22 1.32 1.46 1.31 1.26 1.312010Q3 1.38 1.31 1.28 1.38 1.31 1.28 1.25 1.32 1.23 1.20 1.29 1.26 1.22 1.33 1.48 1.31 1.28 1.322010Q4 1.40 1.32 1.31 1.38 1.32 1.29 1.26 1.32 1.23 1.21 1.30 1.27 1.23 1.34 1.50 1.31 1.29 1.33




34/41

Appendix Table 3 and Appendix Figure 3: Nonood Items



0.60

0.70

0.80

0.90

1.00

1.10

1.20

1.30

1.40

1.50

2005Q1

2005Q2

2005Q3

2005Q4

2006Q1

2006Q2

2006Q3

2006Q4

2007Q1

2007Q2

2007Q3

2007Q4

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4


0

Period



Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 CAR ARMM CARAGA R4B PHI2005Q1 1.22 0.98 0.79 0.90 0.95 0.92 0.89 0.91 0.92 0.86 0.82 0.81 0.83 0.87 0.87 0.79 0.83 1.002005Q2 1.24 1.00 0.80 0.91 0.96 0.92 0.90 0.92 0.93 0.87 0.83 0.82 0.84 0.89 0.89 0.80 0.84 1.012005Q3 1.26 1.01 0.80 0.92 0.97 0.95 0.91 0.93 0.94 0.89 0.84 0.83 0.84 0.90 0.90 0.81 0.85 1.032005Q4 1.26 1.03 0.82 0.94 0.98 0.96 0.92 0.95 0.95 0.90 0.85 0.84 0.86 0.91 0.92 0.82 0.86 1.042006Q1 1.30 1.05 0.83 0.95 0.99 0.98 0.93 0.97 0.96 0.92 0.87 0.85 0.86 0.93 0.93 0.84 0.87 1.062006Q2 1.31 1.06 0.84 0.96 1.02 0.98 0.93 0.98 0.97 0.93 0.87 0.86 0.87 0.94 0.94 0.84 0.88 1.072006Q3 1.32 1.08 0.86 0.97 1.02 1.00 0.94 0.99 0.99 0.93 0.88 0.88 0.87 0.94 0.95 0.85 0.88 1.082006Q4 1.32 1.08 0.87 0.97 1.02 1.00 0.94 0.99 0.99 0.93 0.88 0.88 0.87 0.95 0.95 0.85 0.88 1.082007Q1 1.33 1.08 0.87 0.97 1.03 1.00 0.94 0.99 0.99 0.93 0.89 0.88 0.87 0.95 0.96 0.85 0.89 1.082007Q2 1.33 1.09 0.88 0.98 1.03 1.01 0.95 0.99 0.99 0.94 0.90 0.89 0.88 0.95 0.97 0.86 0.89 1.092007Q3 1.34 1.10 0.88 0.98 1.04 1.02 0.96 1.00 1.00 0.95 0.91 0.89 0.88 0.96 0.97 0.87 0.89 1.102007Q4 1.34 1.10 0.89 0.99 1.04 1.02 0.96 1.00 1.01 0.95 0.91 0.89 0.88 0.96 0.98 0.87 0.90 1.102008Q1 1.35 1.11 0.90 1.00 1.05 1.04 0.98 1.02 1.02 0.98 0.93 0.90 0.90 0.97 1.01 0.90 0.92 1.112008Q2 1.38 1.13 0.91 1.02 1.06 1.04 0.99 1.04 1.03 1.00 0.95 0.92 0.92 0.98 1.02 0.93 0.93 1.132008Q3 1.39 1.15 0.93 1.04 1.07 1.06 1.02 1.06 1.06 1.03 0.97 0.92 0.94 1.00 1.05 0.95 0.95 1.152008Q4 1.39 1.14 0.93 1.04 1.07 1.06 1.01 1.05 1.06 1.02 0.97 0.92 0.94 1.00 1.04 0.95 0.95 1.152009Q1 1.39 1.14 0.92 1.03 1.07 1.06 1.00 1.04 1.05 1.02 0.96 0.92 0.93 0.98 1.04 0.95 0.95 1.142009Q2 1.41 1.15 0.93 1.03 1.07 1.06 1.01 1.05 1.06 1.02 0.97 0.93 0.94 0.99 1.05 0.95 0.96 1.152009Q3 1.42 1.15 0.94 1.04 1.08 1.08 1.02 1.06 1.06 1.04 0.98 0.95 0.95 1.00 1.05 0.97 0.97 1.162009Q4 1.42 1.17 0.94 1.05 1.09 1.08 1.03 1.07 1.07 1.04 0.99 0.96 0.95 1.01 1.07 0.97 0.97 1.172010Q1 1.43 1.17 0.95 1.06 1.09 1.10 1.03 1.08 1.07 1.05 0.99 0.98 0.96 1.02 1.07 0.98 0.98 1.182010Q2 1.45 1.19 0.95 1.07 1.10 1.11 1.04 1.09 1.08 1.06 1.00 0.99 0.96 1.02 1.07 0.98 0.99 1.192010Q3 1.45 1.19 0.95 1.07 1.10 1.11 1.04 1.09 1.07 1.05 1.00 1.00 0.96 1.03 1.08 0.99 0.99 1.192010Q4 1.46 1.20 0.97 1.08 1.11 1.12 1.05 1.10 1.08 1.06 1.00 1.00 0.96 1.03 1.09 0.99 1.00 1.20




35/41

Appendix Table 4 and Appendix Figure 4: Clothing and Footwear


Period

M inimum 0.89Maximum 1.32MinMax Ratio 0.67

0.60

0.70

0.80

0.90

1.00

1.10

1.20

1.30

1.40

2005Q1

2005Q2

2005Q3

2005Q4

2006Q1

2006Q2

2006Q3

2006Q4

2007Q1

2007Q2

2007Q3

2007Q4

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4


0



Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 CAR ARMM CARAGA R4B PHI2005Q1 1.13 0.96 0.89 0.94 0.97 1.05 0.91 1.02 1.00 1.01 0.94 0.97 0.89 0.93 1.00 0.98 0.94 1.002005Q2 1.14 0.96 0.89 0.95 0.97 1.06 0.92 1.03 1.01 1.03 0.95 0.98 0.89 0.94 1.01 0.99 0.94 1.012005Q3 1.14 0.97 0.90 0.97 0.98 1.07 0.93 1.04 1.02 1.03 0.96 0.99 0.90 0.95 1.01 1.00 0.96 1.022005Q4 1.15 0.98 0.90 0.98 0.99 1.07 0.93 1.06 1.04 1.04 0.96 1.00 0.91 0.96 1.03 1.01 0.97 1.022006Q1 1.16 0.98 0.91 0.98 1.01 1.08 0.94 1.07 1.06 1.05 0.97 1.01 0.91 0.98 1.04 1.01 0.98 1.032006Q2 1.17 0.99 0.92 0.99 1.01 1.09 0.94 1.08 1.07 1.05 0.98 1.02 0.91 0.99 1.05 1.02 0.98 1.042006Q3 1.18 0.99 0.92 1.00 1.02 1.10 0.95 1.09 1.07 1.06 0.99 1.03 0.91 0.99 1.06 1.02 0.99 1.052006Q4 1.19 1.00 0.94 1.01 1.02 1.11 0.96 1.09 1.07 1.07 1.00 1.03 0.92 1.00 1.07 1.03 1.00 1.062007Q1 1.20 1.00 0.94 1.02 1.02 1.11 0.96 1.10 1.07 1.08 1.00 1.03 0.92 1.01 1.09 1.04 1.00 1.062007Q2 1.21 1.01 0.95 1.02 1.03 1.12 0.96 1.10 1.07 1.08 1.01 1.04 0.92 1.01 1.10 1.04 1.01 1.072007Q3 1.21 1.01 0.95 1.02 1.03 1.12 0.96 1.10 1.08 1.09 1.00 1.05 0.92 1.02 1.11 1.04 1.01 1.072007Q4 1.21 1.01 0.95 1.03 1.04 1.13 0.96 1.10 1.08 1.10 1.01 1.05 0.92 1.02 1.11 1.04 1.02 1.072008Q1 1.25 1.02 0.96 1.05 1.05 1.14 0.97 1.13 1.10 1.14 1.02 1.06 0.95 1.03 1.14 1.06 1.02 1.092008Q2 1.27 1.03 0.97 1.06 1.05 1.14 0.98 1.16 1.10 1.16 1.04 1.08 0.97 1.03 1.16 1.07 1.03 1.112008Q3 1.28 1.04 0.98 1.08 1.06 1.16 0.99 1.18 1.13 1.18 1.05 1.09 0.98 1.03 1.18 1.09 1.04 1.122008Q4 1.28 1.05 0.98 1.08 1.07 1.17 1.00 1.20 1.14 1.18 1.06 1.10 0.99 1.04 1.18 1.09 1.05 1.132009Q1 1.29 1.05 0.98 1.09 1.08 1.17 1.00 1.20 1.15 1.19 1.06 1.11 0.99 1.04 1.19 1.09 1.06 1.132009Q2 1.30 1.06 0.98 1.10 1.08 1.18 1.01 1.21 1.15 1.20 1.06 1.12 1.00 1.04 1.19 1.10 1.06 1.142009Q3 1.30 1.07 0.99 1.10 1.09 1.18 1.01 1.21 1.15 1.20 1.07 1.13 1.00 1.05 1.19 1.10 1.07 1.142009Q4 1.30 1.07 0.99 1.11 1.10 1.19 1.02 1.22 1.15 1.21 1.08 1.13 1.01 1.05 1.21 1.11 1.08 1.152010Q1 1.31 1.07 0.99 1.11 1.11 1.19 1.02 1.23 1.15 1.22 1.08 1.14 1.01 1.05 1.22 1.11 1.08 1.152010Q2 1.32 1.07 0.99 1.12 1.11 1.20 1.02 1.23 1.15 1.22 1.08 1.14 1.01 1.06 1.23 1.11 1.08 1.162010Q3 1.32 1.07 1.00 1.12 1.12 1.20 1.02 1.23 1.16 1.22 1.08 1.15 1.02 1.06 1.23 1.12 1.09 1.162010Q4 1.32 1.07 1.00 1.13 1.12 1.21 1.03 1.24 1.16 1.23 1.09 1.15 1.02 1.06 1.25 1.13 1.09 1.17




36/41

Appendix Table 5 and Appendix Figure 5: Housing and Repairs



0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2.20

2005Q1

2005Q2

2005Q3

2005Q4

2006Q1

2006Q2

2006Q3

2006Q4

2007Q1

2007Q2

2007Q3

2007Q4

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4


0

Period



Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 CAR ARMM CARAGA R4B PHI2005Q1 1.69 0.87 0.51 0.58 0.76 0.67 0.72 0.77 0.80 0.59 0.52 0.53 0.54 0.68 0.50 0.38 0.58 1.002005Q2 1.72 0.88 0.51 0.58 0.77 0.68 0.72 0.77 0.81 0.59 0.52 0.54 0.54 0.70 0.52 0.38 0.58 1.012005Q3 1.74 0.88 0.52 0.59 0.77 0.68 0.72 0.79 0.81 0.60 0.52 0.54 0.54 0.70 0.52 0.39 0.59 1.022005Q4 1.74 0.89 0.52 0.60 0.78 0.68 0.72 0.80 0.81 0.60 0.52 0.54 0.54 0.71 0.52 0.39 0.59 1.032006Q1 1.80 0.90 0.52 0.60 0.78 0.69 0.73 0.82 0.83 0.60 0.53 0.54 0.55 0.71 0.53 0.39 0.59 1.042006Q2 1.81 0.93 0.53 0.61 0.78 0.69 0.73 0.83 0.84 0.61 0.53 0.55 0.55 0.71 0.54 0.39 0.60 1.052006Q3 1.81 0.94 0.57 0.61 0.79 0.70 0.74 0.83 0.86 0.61 0.53 0.55 0.55 0.72 0.54 0.39 0.60 1.062006Q4 1.82 0.94 0.58 0.61 0.79 0.70 0.74 0.83 0.86 0.61 0.53 0.55 0.55 0.72 0.54 0.40 0.60 1

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