The Consumer Price Index (CPI) measures the change in average retail prices of a fixed basket of goods and services commonly purchased by households, relative to a base year. This market basket includes items such as food, drinks, fuel, clothing, toiletries, transportation fare, utilities, and healthcare. The items are chosen to reflect the spending habits and preferences of a specific group of consumers. To keep the CPI relevant, the Survey of Key Informants (SKI) and Commodity and Outlet Survey (COS) are conducted to gather information on regularly purchased commodities and the outlets where they are bought. Modal commodities, which are the most commonly purchased items, are given particular attention. Each commodity or group of commodities has a weight in the CPI calculation, indicating its relative importance in the market basket. The weights are based on the proportion of household expenditure on each commodity during the base year, as determined by the Family Income and Expenditure Survey (FIES) conducted by the Philippine Statistics Authority (PSA). Prices are collected from selected retail outlets that meet specific criteria, such as popularity and consistent stock. In the National Capital Region (NCR), food and fuel prices are collected weekly, while other items are collected bi-weekly or monthly. Outside NCR, fuel prices are collected weekly, and other items bi-weekly.
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Understanding the Market Basket in the Philippines

The Consumer Price Index (CPI) measures the change in average retail prices of a fixed basket of goods and services commonly purchased by households, relative to a base year. This market basket includes items such as food, drinks, fuel, clothing, toiletries, transportation fare, utilities, and healthcare. The items are chosen to reflect the spending habits and preferences of a specific group of consumers.

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