P1 in 2018 was worth 87 centavos in June 2022 — PSA

The purchasing power of the Philippine has declined in the past three years to hit its lowest level since 2018 due to the inflationary uptick, the Philippine Statistics Authority (PSA) reported Tuesday.

According to National Statistician Claire Dennis Mapa, P1 in 2018 was equivalent to 87 centavos worth in June 2022, as inflation hit a fresh three-year high of 6.1%.

“‘Pag ating CPI ay tumataas, ibig sabihin mas lumiliit ‘yung purchasing power ng pera natin, ng piso, na para bumili ng goods and services,” Mapa said in a briefing with reporters.

[If our CPI increases, this means that the purchasing power of the peso decreases to buy goods and services.]

The purchasing power of the Philippine peso is computed as 1 divided by the consumer price index, multiplied by 100.

Inflation clocked in at 6.1% in June, the same reading seen in November 2018 and the highest since 6.9% in October 2018. This compares with the 5.4% in May, and the downward revised 3.7% in June 2021.

“‘Pag tumataas ‘yung inflation natin through the years, ine-expect natin na bumababa ‘yung purchasing power ng peso,” Mapa said.

[When our inflation rate increases through the years, we expect that the purchasing power of the peso weakens.]

“I don’t really see that this is something extraordinary because we are seeing higher inflation,” he added.

Sought for comment if other factors could have affected the purchasing power of the peso, Mapa clarified that it is computed based on the consumer price index.

Aside from the lower purchasing power of the Philippine peso, it has also weakened against the US dollar, hitting its weakest level in over 16 years as it closed last week at P55.09:$1. The peso closed Monday at P55.08:$1. — RSJ, GMA News