Which price index measures the cost of goods typically purchased by urban households in the Philippines?
A. PPI
B. Core PCE
C. CPI
D. GDP Deflator
Answer (2)
The correct answer is letter C. CPIThe Consumer Price Index (CPI) is the main tool used in the Philippines to measure inflation. It tracks the prices of everyday items that typical families buy, such as rice, electricity, gasoline, cooking oil, and medicine. These items are put together into what's called a “market basket.”If the total cost of that basket increases over time, we say inflation is happening. If the cost goes down, it's called deflation. The Philippine Statistics Authority (PSA) calculates and updates the CPI monthly to help track how fast prices are changing and how this affects Filipino families, especially in cities.
The correct answer is C. CPI (Consumer Price Index).CPI (Consumer Price Index) measures the average change over time in the prices paid by urban households for a fixed basket of goods and services. It reflects the cost of living and inflation experienced by typical consumers.PPI (Producer Price Index) measures the average change over time in selling prices received by domestic producers for their output, not consumer prices.Core PCE (Personal Consumption Expenditures Price Index) measures the price changes in consumer goods and services excluding food and energy, mainly used in the US for monetary policy.GDP Deflator measures the price changes of all goods and services included in GDP, reflecting the overall inflation in an economy but not specific to urban household consumption.
