ADB Economics Working Paper Series
Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines
Yuri Dikhanov, Chellam Palanyandy, and Eileen Capilit No. 290 | December 2011
ADB Economics Working Paper Series No. 290
Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines
Yuri Dikhanov, Chellam Palanyandy, and Eileen Capilit December 2011
Yuri Dikhanov is Senior Economist at the World Bank; Chellam Palanyandy is Lead Statistician, and Research Division, Economics and Research Department, Asian Development Bank. The authors thank Paul McCarthy, Virginia Gañac, Rosie Sta. Ana, and Elena Varona for their valuable inputs; and Prasada ! " # $ % & ' # $ accept responsibility for any errors in the paper. Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines &&&# %# (
©2011 by Asian Development Bank December 2011 ' )*++-+/+/ Publication Stock No. WPS124253
$ & 7 are those of the author(s) and do not \ & of the Asian Development Bank.
The ADB Economics Working Paper Series is a forum for stimulating discussion and eliciting feedback on ongoing and recently completed research and policy studies undertaken by the Asian Development Bank (ADB) staff, consultants, or resource # $ & " % < = & < < > ( < # $ " & R = @ !R strategies, and its subregional and country operations; and improve the quality and availability of statistical data and development indicators for monitoring development effectiveness.
$ ! F " @ "- < % & % @ % % journals or chapters in books. The series is maintained by the Economics and Research Department. Contents
Abstract v
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# Q B. Data Structure 8
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A. Organization of Data for Computing Subnational PPPs 13 B. Determining Product Overlaps 14 C. Subnational PPP Aggregation 15
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References 32
Abstract
$ ^ _ & # $ 7 & ^ _ & - ^] _ > # F 7 < 7 ^ _ 7 % " % # $ % & % ^ _ & % # & the output is temporally consistent subnational price levels (subnational PPPs) that can be used in regional price comparisons, real income dimension of human 7 < < 7 < #
$ ` % & R % % 7 & # $ & % % < & % & & # $ > R & % % % broadly similar.
$ & < & % % " # w & < % % & % 7 % /xxx# % 7 #
I. Background
$ ^ _ & & > to compare levels of economic activity and relative price levels among countries of the & # R % < % % ^] _< & ^ # #< & _# The 7 & ^ _ & - ] > < 7 # ] \ % % % % " % & # /xx+ < % % % “ring countries” for each region that are required to price items from a common ring list of goods and services.1 < % > & 7 7 #
> &% " % " % # ] < % % - # % ` & < 7 ^ _# w & < & & % #
& 7 < % 7 % " % ^ < @ < _# $ 7 7 % % < & @ )xx# $ & % & % % # $ & 7 ^ _< & ^ _ % " #
1 For a thorough discussion on the ring comparison, see World Bank (2008). 2 | ADB Economics Working Paper Series No. 290
[ 7 /xx+ % " /xx+ /xx\<2 the Asian Development Bank (ADB) recognized that the key to achieving sustainability for countries to have a better understanding and appreciation of the importance of PPP # $ < % & % = & " % & & "= & % % # O " & < & & % ( > < 7 < & % < % #
A direct use of regional price levels is to calculate PPPs that can be used for analyzing & # < @ 7 - % # /xx+ < ] % F ! " % Advisory Group to provide advice on the methods to be adopted for assessing poverty # $ ] % % < % & 7 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. The & % ! - #3 % < & < O - % > & % 7 & P ^ ! /xx}< }I_# $ % 7 % % # w & < &- < & @ consumed by the poor and the general population are likely to be less pronounced, then % - % & % & 7 # [ < &- 7
2 The Regional Technical Assistance (RETA 6482: Improving Price Collection of Non-Household Expenditure Components and Updating Purchasing Power Parity Estimates for Selected Developing Member Countries) is participated in by 21 economies including: Bangladesh; Bhutan; Brunei Darussalam; Cambodia; the People’s Republic of China (PRC); the Republic of Fiji; Hong Kong, China; India; Indonesia; the Lao People’s Democratic Republic; Malaysia; the Maldives; Mongolia; Nepal; Pakistan; the Philippines; Singapore; Sri Lanka; Taipei,China; Thailand; and Viet Nam. The same group of economies participated in the 2005 ICP Asia Pacific along with two other non-ADB members, Macao, China and Islamic Republic of Iran (see ADB 2009). 3 Under RETA 6088 (ADB 2008), 16 economies, namely, Bangladesh, Bhutan, Cambodia, the Republic of Fiji, India, Indonesia, the Lao People’s 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 numeraire currency. Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 3
& & an international poverty line.
< [ 7 ^[ _ important data set for poverty analysis. To implement an approach that is similar to the ! - < &- % R # -% & # w < % " % " % Hx~ 7 & % Hx~ [ #4 $ < & < ` obtaining subnational PPP estimates.
II. Objectives
/xx+ < % % # w < - & ! < % < R % < < < X < < O " < $ < J ' % & /xx} /x)x# $ % ! 7 % & % & #
$ ' % ^ ' _< & )x & % % 7 < %> # $ %> 7 7 & % % & & # )Q > % applying the PPP concepts and methodology for broad product subgroups (e.g., Cereals _= ^ # #< [ < % % _= $ 7 ^ _# % & & % % ^ one region or capital city) and adjust the collected price levels to national average prices % % & #
4 NSCB (2009) provides details on the market basket determination and cut-off points for the expenditure weights of the bottom 30% of the population. 4 | ADB Economics Working Paper Series No. 290
III. Challenges
/xx+ ^ ! /xxQ_ ! 7 7 & % R # % # < " & % & # < & % % & % " #
$ % & 7 ^ & - & _# < % # $ @ = < % R 7 % & # & % % & % R % " representative. Comparability can pose some problems, but less so than in international comparisons. The main issue concerning comparability is that the staff collecting products % & of broad parameters that distinguish the type of product to be selected.
% < % % % 7 each month so that the prices observed are not affected by changes in quality. Therefore, ^ & _# [ 7 < $J % ` < < & - < & @ # w & < % $J % < % % # F % % % % < & % ^ _ % % # [ % < " 7 $J % % ^ _ - # Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 5
IV. ICP and CPI: Establishing the Link between Spatial and Temporal Indexes
% & % & 7 # $ 7 % % 7 # < % 7 % used to construct PPPs but it is necessary to collect additional prices for international # $ @ % ^% & % % & 7 # ! < 7 & 7 < & & % % " % # w & < & % < % % % % & 7 # < & % % % @ # [ 7 < % % < & % # $ % & & % ^% < < < %< < < _ % & & & & collected.
$ % < < 7 & & & 7 meant to serve different purposes—spatial and temporal comparisons, respectively—can be integrated to construct subnational PPPs.
A. International Comparison Program
$ R 7 ^ 7 @ % corresponding PPP). A basic heading PPP can be used to divide the GDP values for that % 7 # w & < % % % 7 % # % & those broader aggregates, up to the level of GDP.
< % & ^ or regions) and, as a result, they are often referred to as providing “spatial comparisons” # [ < % & & < !< % R @ !R 6 | ADB Economics Working Paper Series No. 290
& !# 7 % # /xx+ < w < & % # w < w & % < O P< & 7 & 7 #
B. Consumer Price Indexes
7 ( & # 7 % ^ # #< quarter or year) but, most commonly, they are compiled monthly. Their scope can be & & ^ # #< > _# % O P< & % % ^ # #< & < 7 % /x~ _# < 7 % % & & # w & < 7 % % & # < % ^ # #< & 7 @ )xx_# [ 7 < 7 )/x#x )/+#x ! /x~ /+~ ! % # w & < & )x~ & ! % < & % % *~ & ! % #
C. Subnational PPPs: Applying ICP Concepts to CPI Information
The theory and processes underlying international comparisons can also be applied % % & & # < & % @ & & % & # < producing subnational PPPs is obtaining the detailed values for product groups in each @ 7 ^ @ _ 7 & 7 # < % & % & 5 % 7 & & % #
5 In ICP, the price level index is expressed as the price level of a given country relative to another by dividing the PPP by the market exchange rate relative to the base country. Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 7
< 7 @ % 7 # < & & % # ! @ & % ] & % # $ < < [ & # & [ < & & 7 % % & & #
$ " < < < ` # < -% inputs into generating internationally comparable datasets that can be used in analyzing < ^ O _< O ^ F ! "R ) _ # < % % & regions or provinces based on a comparable basket of goods and services.
V. The Philippines CPI
The applicability of the subnational or intracountry PPP compilation is demonstrated in % ' R % # % < & < & the implementation. This section basically discusses the scope and coverage; and the ' & & #6
A. Scope and Coverage
$ }x )Q # $ & )Q ^ ' ' < X _# 7 & & #
< % /xxx< & & % & & [ & # & % < < % % 7 % [ # $ [ 7
6 See NSO (2011) for detailed notes on the rebasing of the CPI from 1994 to 2000. 8 | ADB Economics Working Paper Series No. 290
& # $ /xxx [ & & < I) B. Data Structure 1. Basket of Products and Broad Classification $ O% " P % [ # % % \ ( % # $ % of individual products included in the basket ranges from 286 in the province of Batanes Q+H ' # $ ' R Q % " Q)* & > Hx~ R # & 7 % < < & )Q & # $ & 7 /} % ^$ % )_# 7 Note that the National Capital Region is considered both as region and a province considering its geographic and economic size. Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 9 Table1: Consumer Price Index Classification by Major Groups and Subgroups Code Major Group/Subgroup 1 Food, beverages and tobacco 11 Cereals and cereal preparations 12 Dairy products 13 Eggs 14 Fish 15 Fruit and vegetables 16 Meat 17 Miscellaneous foods 18 Beverages 19 Tobacco 2 Clothing and footwear 20 Clothing 21 Footwear 22 Ready-made apparel, except footwear 23 Custom clothes (accessories and services) 3 Housing and repairs 31 Minor repairs 32 Rentals 4 Fuel, light and water 41 Fuel 42 Light 43 Water 5 Services 51 Educational services 52 Medical services 53 Personal services 54 Recreational services 55 Transportation and communication 56 Other services 6 Miscellaneous 61 Household furnishing and equipment 62 Household operations 63 Personal care and effects 64 Other miscellaneous goods Total (All groups) Source: National Statistics Office( 2000). ! /xxx [ < [ < % % < +x#x~ 7 & < & [ & I*#*~# w ^)*#}~_ ^)+#\~_# w & < " # [ 7 < [ HQ#*~ 7 & ' < & ' R & w ^/I#*~_ R # 2. Price Quotations $ % % I+\ of their importance in sales of the products to be priced and on the consistency and " # < % % ` % % # < " % % " ^ # #< 7 _# 3. Base/Reference Year and Sources of Weights $ /xxx % & % % /xx/< )\\I-% & )\\*# < 7 ^ # #< & % & % 7 _# < # [ 7 < & 7 # $ & & % % & # < @ > ^ [ _ < & % " @ ^& H _ & % / # < % " & # [ < /xxx-% & % ( /xx*-% # 4. Regular CPI Aggregation Methodology $ O 7 -% ^ O & 7_ % 7 < 7 < 7 7 # $ O & 7 7# F < < 7 % available only some time after their reference period because it is necessary to conduct % # $ O & % 7 % & % % & ^ O /xxI_# [ 7 < % & " < " & 7 % " # ! O 7 7 & & % 7 & # Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 11 < & < O & 7 % & 7 % &K sum⎣⎡()) P/ P W ⎦⎤ CPI = no ×100 sum() W (1) & K Pn = current price Po = base period price W = PoQo & O " < < \ < - - < < CPI− CPI INFLATION RATE = 21×100 CPI 1 (2) & K CPI2 CPI1 VI. Estimation Methodology: Subnational PPP $ 7 & # & # F [ N % 7 % N < )Q $ % / % & & corresponding regional and country populations in 2010. 12 | ADB Economics Working Paper Series No. 290 Table 2: Population of 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 10,159,300 Region 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 3,551,800 CAR 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 Office, available: www.census.gov.ph/data/sectordata/popproj_tab3r.html. $ 7 < criterion is to obtain a set of prices for products that must be identical so that their % % % & # O % P# 2003-2006 ICP Handbook (World ! " /xxQ%< )+M*_ & K $& < < % % K (i) if their physical and economic characteristics are identical, or ^ _ % & # $& % % & & # $ prepared to pay more for one than the other. % < > K ^ _ $ organization of the data for computing subnational PPP, (ii) the determination of the overlapping products; and (iii) subnational aggregation. Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 13 A. Organization of Data for Computing Subnational PPPs $ % < & ' % & # < % < & # 7 @ % - < & < < % 7 @ % % & # $ ' & % 7 < % " @ % # $ converting them into average prices for each product in each region and copying them % % # $ ^ % _ & 7 < & % 7 & % # $ % & < & \ % " < & ` " % # [ 7 < O " P & Hxx ^ _ )#+ < & & < % @ & " % # < & & ^ # #< " *xx greater than 600 ml). $ 7 % & % < & < 7 & @ the PPPs for individual products could be aggregated into those for broader product # $ & % # < % % @ # $ < [ & to provide the values and hence, the analysis should be limited to household income and 7 ] # F [ % 7 % % < & % % < & & # w < % & aggregates. 14 | ADB Economics Working Paper Series No. 290 B. Determining Product Overlaps As is the case for international comparisons, another characteristic required for subnational comparisons is representativity. One of the criteria for selecting products % % R # $ O P % " therefore, need not be considered further in this case study since all products in the % % # w & < J!< ^ ( _ & O R % " \ # w < & & % % & % # < % % & % % # < < % & % % & % & % # $ % & # $ % " % % # The changes that do occur are to replace products that are no longer available and to & & % # [ 7 < & & )\\I /xxx % < *}#I~ ' & & H)#*~ & # $ & % % 7 " account of local conditions (e.g., package sizes may not be the same in different regions % _# < % & % # w % & # " ` be adjusted to a unit price, provided that the package sizes are relatively similar (e.g., Hxx " % & /+x " % )xx < % /+x " & % +xx _# % & # [ 7 < % % @ # )< % % ! < & / % < % brand C is priced in region 3. The regional availability of the different brands is illustrated in Table 2. Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 15 Table 3: Example for Identifying Product Overlap Coffee Region 1 Region 2 Region 3 Assessment Brand A Priced Priced Include Brand B Priced Exclude Brand C Priced Priced Include Source: Authors’ illustration. 7 < % % & ) H % % % # % < < % % & ) / % % & / H# $ % & " # % 7 < % & % % & ) / % & % % & / H# /< & % & < " % & ) H# < % ! & % % & )# $ % 7 % % % & # < < & % % # w & < be identical in the different regions because of the options given to price collectors to 7 & % < & % # $ 7 ^ _ < easier it is to compare price levels among regions. < % < & % % " & /}* ! Q+H ' ^X R % " Q)* products). There is a large degree of product overlap among the regions even though, 7 < & " % " /xxx # ] the distinct consumption patterns of each of the region, the number of products in the R % " ))<)QI# w & < % % N < % % & N H C. Subnational PPP Aggregation ` & the estimation of subnational PPP at different levels that include elementary and higher level aggregation. 16 | ADB Economics Working Paper Series No. 290 1. Elementary Index Aggregation & # < & # $ % # < - - ^ _ 7 # < /- ^/} % ( _# $ H- (85 categories) is planned for the future. $ % & 7 & # % < & 7 % & % 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. The underlying model for the CPD is multiplicative and assumes that prices vary by & < regions at the same rate across all products. $ 7 ^ _ = & < % & # $ 7< % ^)\QH_ % & @ < & & # $ @ % & K ln pyx==βε + cp cp cp cp (3) & pcp = price of product p in country c Dc j and Dpi = country and product dummies Np and Nc = number of products and countries, respectively. = ⎡ ...... ⎤ xDcDcDpDpDpcp⎣ 212 Nc Np ⎦ βααγγγ= ⎡ ...... ⎤T ⎣ 212⎦ Nc Np (4) 7 < % " % < % & K yXβ=+ε (5) ' % 7 " ^' ' -)_#8 < % % < R " % # 8 The sum of country dummies equals the sum of product dummies, so one dummy has to be dropped. Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 17 The solution is given (under the conditions of independently and identically distributed % _ % K −1 ˆ TT β = () X X X y (6) < % ^ _ % % # $ # \ xDcDcDpDp′ = ⎡ ...1 ... ⎤ cp⎣ 22 Nc Np ⎦ T βαα′ = ⎡ ′′...c γ ′ ...γ ′ ⎤ ⎣ 22Nc intercept Np ⎦ ^Q_ yX= ′′β + ε (8) The solutions of equations (5) and (8) are on the country and product price relatives that & # & < αα= ′ jj γ1 = cintercept γγ= ′ + , iicintercept for ==22... , ... iNpjNc ^\_ ′ ′ & i and j i and country j, respectively, in & # One useful output from the CPD model is a set of estimated prices for each product # $ & & % # $ % & % % % & the prices provided by a region. Large differences indicate possible problems, e.g., % < % % & & & # $& > estimation of sampling errors for PPPs, and calculation of patterns of residuals that can % % & ^ _ collected by an economy for a particular basic heading. [ > < & % - # that the “country” in the original CPD should be understood as the “country [region] at P# < % O ( P & % @ )Q< representing the number of regions in the Philippines, multiplied by the number of time 9 Note that the sign ( ) does not mean transpose. Sign ( T ) is used for that purpose. 18 | ADB Economics Working Paper Series No. 290 I ^@ _ 7 * ^ _ /I @ # $ % -$ - - $ # $ $ < & & # $ generated by the CTPD model are transitive as it basically carries the same principle # & < % & R & & # $ # & < $ 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 $ 7 % 7 % 7 7# $ 7 @ % # $ 7 ^ % @ _ & K @ 7 < # $ & % & K and a quantity change. Because in practice prices can be recorded only at discrete < & % % < 7 7 % # $ < 7 % 7 7# 7 % % 7 < % $ "@ [ 7 # [ < O 7< % R 7 # ' < % & O $ "@ [ 7 < % O 7 ^ _ x#)~Mx#H~ # [ 7 < & $ "@ 7# w & < < 7 & > % [ < & H # < 7 & /xx+M/x)x % # w < < & /xxx & used as a substitute. Even though the substitution effect cannot be incorporated into the < & & < # & /xx* /xx\ & & % 7 # $ & & $ "@ 7# $ 7 % % O < & % % & # Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 19 VII. Major Results and Findings of the Study & % @ & K % & % H~MI~ *- ^[ )_# % 7 % 7 ^ O _< % 7 & % & % & O 7# w & < 7 differences in full. Figure 1: Estimated Quarterly Price Indexes versus Official Consumer Price Index, 2005–2010 1.350 1.300 1.250 1.200 1.150 1.100 1.050 1.000 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 Estimate (Philippines) Estimate (Manila) Official (Philippines) Official (Manila) Source: Authors’ estimates. $ 7 > & the aggregates of nonfood groups are provided in graphical and tabular forms in the 7 $ % # $ ` 7 # $ 7 # $ 7 % @ < @ ^)_ /xx+ I /x)x# % # [ 7 < & 7 $ % ) 7 [ ) to Region 12 across all quarters from Q1 2005 to Q4 2010. The reference point is the price level in the Philippines in Q1 2005. Thus, the Manila price level in Q1 2005 is 115% # $ & < I /x)x level stands at 126% of the reference point. Manila price level rises in Q4 2010 to 142% 20 | ADB Economics Working Paper Series No. 290 of the reference point. At the same time, the price level in Region 1 rose from 100% of ^ ) /xx+_ ) /xx+ )/Q~ I /x)x< virtually identical to the national price level over the period. These numbers indicate that \ ) & /Q#)~< I /x)x ) & )x#I~ & X # 7 % & < & ^% _ & than Manila. Nonetheless, the price level in Manila during the period has been generally & & K % )/H~ % )/*~< & & # $ X & ))+~ ) /xx+< ))/~ I /x)x# w & < < & % % " # & " & % % % 7 # $ % )Q < )I~ % &< )+~ % # $ relatively higher price level in NCR could in part be attributed to the high housing costs. 7 < X & < % 3% above the average in Q4 2010. The price difference can be much higher for individual components. [ % > & # $ & % & regions in order of their per capita incomes, both in nominal and real terms. Note that the " % % [ & # & & % % 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 # % & 7 /xx+ # < X - & % % H~ < & @ & ^H~MI~_# Table 4: Per Capita Expenditures, Philippines Nominal and Real (Philippines = 1.0) Major Group/Region Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 CAR RMM CARAGA R4B PHI Nominal Relative Expenditures Personal Consumption Expenditure 2.30 0.84 0.81 0.96 1.10 0.81 0.82 0.71 0.64 0.59 0.70 0.77 0.67 0.98 0.38 0.61 0.68 1.00 Subnational PurchasingPower Parities towardIntegrationofInternationalComparisonProgram Food, Beverages and Tobacco 1.85 0.93 0.96 1.02 1.10 0.92 0.88 0.78 0.74 0.69 0.76 0.83 0.75 1.00 0.48 0.72 0.76 1.00 Nonfood 2.75 0.75 0.65 0.90 1.11 0.70 0.76 0.64 0.55 0.48 0.64 0.72 0.58 0.95 0.28 0.51 0.60 1.00 Clothing and Footwear 1.98 1.05 0.87 1.00 1.08 0.77 0.94 0.60 0.51 0.60 0.86 0.92 0.86 0.97 0.45 0.69 0.86 1.00 Housing and Repairs 3.37 0.60 0.55 0.78 1.02 0.60 0.65 0.62 0.49 0.41 0.54 0.58 0.42 0.96 0.24 0.38 0.54 1.00 Fuel, Light, and Water 2.33 0.86 0.76 1.06 1.15 0.76 0.79 0.68 0.63 0.53 0.72 0.69 0.62 0.91 0.34 0.59 0.61 1.00 Services 2.79 0.75 0.63 0.89 1.19 0.68 0.75 0.63 0.50 0.45 0.61 0.75 0.57 0.97 0.17 0.46 0.53 1.00 Miscellaneous Items 1.96 0.85 0.76 0.99 1.13 0.85 0.90 0.68 0.70 0.62 0.80 0.91 0.84 0.94 0.47 0.74 0.79 1.00 Real Relative Expenditures Personal Consumption Expenditure 2.01 0.85 0.90 0.95 1.14 0.85 0.90 0.75 0.72 0.66 0.80 0.89 0.74 1.00 0.43 0.65 0.70 1.00 Food, Beverages and Tobacco 1.71 0.93 1.02 0.98 1.06 0.95 0.95 0.81 0.84 0.77 0.82 0.92 0.81 0.96 0.52 0.74 0.72 1.00 Nonfood 2.26 0.80 0.80 0.93 1.21 0.76 0.85 0.70 0.62 0.57 0.80 0.88 0.69 1.05 0.36 0.58 0.70 1.00 and ConsumerPriceIndex:TheCaseofthePhilippines|21 Clothing and Footwear 1.76 1.14 1.01 1.04 1.07 0.78 1.01 0.60 0.52 0.61 0.93 0.98 0.97 1.00 0.47 0.76 0.85 1.00 Housing and Repairs 2.02 0.82 0.97 1.05 1.44 0.89 0.95 0.77 0.74 0.69 1.13 1.01 0.75 1.32 0.62 0.64 1.06 1.00 Fuel, Light, and Water 2.41 0.80 0.84 0.92 1.10 0.65 0.81 0.65 0.62 0.53 0.79 0.92 0.75 0.86 0.37 0.73 0.62 1.00 Services 2.62 0.78 0.70 0.89 1.18 0.73 0.79 0.69 0.55 0.52 0.65 0.82 0.62 0.97 0.17 0.47 0.48 1.00 Miscellaneous Items 1.93 0.86 0.82 0.94 1.15 0.81 0.95 0.70 0.70 0.62 0.80 0.94 0.89 0.91 0.47 0.72 0.75 1.00 Source: Authors’ estimates. 22 | ADB Economics Working Paper Series No. 290 VIII. Conclusion and Future Directions $ > " % & R % 7 & # % % < % & )Q % # $ & " % & )Q # $ & % incidence of poverty by enabling the national poverty lines to be adjusted for regional < & % # $ differences in overall regional standards of living. < 7 & % & & % & # w & < % < [ & # F < % & 7 # & & % used to provide reliable estimates of price levels of a range of products in each region, % & % < % % < & @ # $ & ^ < 7 < ' _ > # $ " % % adjust prices in one or more of the major cities to national average prices. The current & % < % < across regions, and can be easily accessed and manipulated. $ & % < & & required for regional price level comparisons and studies into the incidence of poverty < % # $ % < % " & % @ ( 7 % # Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 23 % 7 % # < % & be selected so that they overlap in different regions and can be easily compared across # 7 & % % & ^ _ # < [ " dataset in this regard, and studies could be undertaken to determine the best means of 7 [ & 7 # @ also be assessed in detail, particularly for poverty analysis. % < % < & % 7 & "# $ & # ^ _ < /- ^/} % ( _# $ < H- (85 categories) is planned. ^ _ & /xx* /xx\ < & < # $ & % $ "@ 7 % for the substitution effect. ^ _ X & " 7 % & ! # < from 2000 need to be incorporated into the analysis. ^ _ $ & < & % % " # w & < % % & % 7 /xxx# % 7 " behavior. 24 | ADB Economics Working Paper Series No. 290 Appendix: Tables and Charts by Major Commodity Groups Appendix Table 1 and Appendix Figure 1: Personal Consumption Expenditure Quarterly Regional Price Index, 2005–2010 Minimum 0.87 Maximum 1.42 MinMax Ratio 0.61 1.50 1.40 1.30 1.20 1.10 1.00 0.90 Price Levels: Philippines Q1 2005 = 1.00 Levels: Price 0.80 0.70 0.60 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 Period Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 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 1.00 2005Q2 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 1.01 2005Q3 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 1.02 2005Q4 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 1.04 2006Q1 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 1.05 2006Q2 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 1.07 2006Q3 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 1.08 2006Q4 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 1.08 2007Q1 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 1.09 2007Q2 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 1.09 2007Q3 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 1.10 2007Q4 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 1.11 2008Q1 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 1.13 2008Q2 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 1.16 2008Q3 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 1.19 2008Q4 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 1.19 2009Q1 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 1.20 2009Q2 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 1.21 2009Q3 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 1.22 2009Q4 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 1.24 2010Q1 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 1.24 2010Q2 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 1.25 2010Q3 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 1.25 2010Q4 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 Source: Authors’ estimates. Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 25 Appendix Table 2 and Appendix Figure 2: Food, Beverages, and Tobacco Quarterly Regional Price Index, 2005–2010 Minimum 0.86 Maximum 1.50 MinMax Ratio 0.57 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 Price Levels: Philippines Q1 2005 = 1.00 Levels: Price 0.80 0.70 0.60 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 Period Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 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 1.08 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 1.00 2005Q2 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 1.01 2005Q3 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 1.02 2005Q4 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 1.04 2006Q1 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 1.05 2006Q2 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 1.06 2006Q3 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 1.07 2006Q4 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 1.08 2007Q1 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 1.09 2007Q2 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 1.09 2007Q3 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 1.10 2007Q4 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 1.12 2008Q1 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 1.15 2008Q2 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 1.19 2008Q3 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 1.24 2009Q1 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 1.26 2009Q2 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 1.27 2009Q3 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 1.28 2009Q4 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 1.31 2010Q1 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 1.31 2010Q2 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 1.31 2010Q3 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 1.32 2010Q4 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 Source: Authors’ estimates. 26 | ADB Economics Working Paper Series No. 290 Appendix Table 3 and Appendix Figure 3: Nonfood Items Quarterly Regional Price Index, 2005–2010 Minimum 0.79 Maximum 1.46 MinMax Ratio 0.54 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 Price Levels: Philippines Q1 2005 = 1.00 Levels: Price 0.70 0.60 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 Period Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 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 1.22 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 1.00 2005Q2 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 1.01 2005Q3 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 1.03 2005Q4 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 1.04 2006Q1 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 1.06 2006Q2 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 1.07 2006Q3 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 1.08 2006Q4 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 1.08 2007Q1 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 1.08 2007Q2 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 1.09 2007Q3 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 1.10 2007Q4 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 1.10 2008Q1 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 1.11 2008Q2 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 1.13 2008Q3 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 1.15 2008Q4 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 1.15 2009Q1 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 1.14 2009Q2 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 1.15 2009Q3 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 1.16 2009Q4 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 1.17 2010Q1 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 1.18 2010Q2 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 1.19 2010Q3 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 1.19 2010Q4 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 Source: Authors’ estimates. Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 27 Appendix Table 4 and Appendix Figure 4: Clothing and Footwear Quarterly Regional Price Index, 2005–2010 Minimum 0.89 Maximum 1.32 MinMax Ratio 0.67 1.40 1.30 1.20 1.10 1.00 0.90 Price Levels: Philippines Q1 2005 = 1.00 Levels: Price 0.80 0.70 0.60 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 Period Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 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 1.13 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 1.00 2005Q2 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 1.01 2005Q3 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 1.02 2005Q4 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 1.02 2006Q1 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 1.03 2006Q2 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 1.04 2006Q3 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 1.05 2006Q4 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 1.06 2007Q1 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 1.06 2007Q2 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 1.07 2007Q3 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 1.07 2007Q4 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 1.07 2008Q1 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 1.09 2008Q2 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 1.11 2008Q3 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 1.12 2008Q4 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 1.13 2009Q1 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 1.13 2009Q2 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 1.14 2009Q3 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 1.14 2009Q4 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 1.15 2010Q1 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 1.15 2010Q2 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 1.16 2010Q3 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 1.16 2010Q4 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 Source: Authors’ estimates. 28 | ADB Economics Working Paper Series No. 290 Appendix Table 5 and Appendix Figure 5: Housing and Repairs Quarterly Regional Price Index, 2005–2010 Minimum 0.38 Maximum 1.98 MinMax Ratio 0.19 2.20 2.00 1.80 1.60 1.40 1.20 1.00 0.80 Price Levels: Philippines Q1 2005 = 1.00 Levels: Price 0.60 0.40 0.20 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 Period Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 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 1.69 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 1.00 2005Q2 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 1.01 2005Q3 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 1.02 2005Q4 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 1.03 2006Q1 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 1.04 2006Q2 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 1.05 2006Q3 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 1.06 2006Q4 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 1.06 2007Q1 1.83 0.95 0.58 0.62 0.79 0.70 0.74 0.83 0.87 0.61 0.54 0.55 0.55 0.72 0.54 0.40 0.60 1.06 2007Q2 1.83 0.95 0.58 0.62 0.79 0.70 0.74 0.83 0.88 0.61 0.54 0.55 0.55 0.72 0.54 0.40 0.61 1.07 2007Q3 1.83 0.95 0.59 0.62 0.79 0.70 0.74 0.83 0.88 0.62 0.55 0.55 0.55 0.72 0.55 0.41 0.61 1.07 2007Q4 1.84 0.95 0.59 0.62 0.79 0.70 0.74 0.83 0.88 0.62 0.55 0.56 0.55 0.73 0.55 0.42 0.61 1.07 2008Q1 1.84 0.96 0.59 0.63 0.79 0.71 0.75 0.84 0.90 0.64 0.57 0.56 0.55 0.73 0.55 0.45 0.62 1.08 2008Q2 1.88 0.98 0.60 0.63 0.80 0.72 0.76 0.85 0.91 0.64 0.58 0.57 0.56 0.75 0.56 0.46 0.63 1.10 2008Q3 1.89 0.98 0.62 0.64 0.80 0.74 0.77 0.86 0.92 0.67 0.59 0.58 0.57 0.76 0.57 0.48 0.65 1.11 2008Q4 1.90 0.99 0.62 0.64 0.80 0.75 0.78 0.86 0.93 0.67 0.59 0.58 0.58 0.76 0.57 0.48 0.65 1.11 2009Q1 1.92 0.99 0.62 0.65 0.80 0.76 0.78 0.86 0.93 0.67 0.59 0.59 0.58 0.76 0.57 0.49 0.65 1.12 2009Q2 1.93 0.99 0.63 0.65 0.80 0.76 0.78 0.86 0.93 0.68 0.59 0.59 0.58 0.76 0.57 0.49 0.65 1.12 2009Q3 1.93 1.00 0.63 0.65 0.81 0.76 0.78 0.86 0.93 0.68 0.60 0.59 0.58 0.77 0.58 0.49 0.66 1.13 2009Q4 1.94 1.00 0.63 0.65 0.81 0.76 0.78 0.87 0.93 0.68 0.60 0.59 0.58 0.77 0.58 0.49 0.66 1.13 2010Q1 1.95 1.01 0.63 0.66 0.81 0.78 0.79 0.87 0.94 0.68 0.60 0.60 0.58 0.78 0.59 0.50 0.67 1.13 2010Q2 1.96 1.02 0.63 0.66 0.81 0.78 0.79 0.87 0.95 0.68 0.60 0.60 0.58 0.78 0.59 0.50 0.67 1.14 2010Q3 1.96 1.04 0.63 0.66 0.81 0.78 0.79 0.87 0.95 0.68 0.61 0.60 0.59 0.79 0.59 0.50 0.68 1.14 2010Q4 1.98 1.04 0.63 0.66 0.81 0.78 0.79 0.87 0.95 0.68 0.61 0.60 0.59 0.79 0.59 0.50 0.68 1.15 Source: Authors’ estimates. Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 29 Appendix Table 6 and Appendix Figure 6: Fuel, Light, and Water Quarterly Regional Price Index, 2005–2010 Minimum 0.75 Maximum 1.62 MinMax Ratio 0.47 1.80 1.60 1.40 1.20 1.00 Price Levels: Philippines Q1 2005 = 1.00 Levels: Price 0.80 0.60 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 Period Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 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 0.93 1.04 0.90 1.17 1.15 1.12 0.93 1.05 0.96 1.06 0.92 0.75 0.83 1.04 0.98 0.89 0.84 1.00 2005Q2 0.95 1.05 0.92 1.20 1.16 1.13 0.95 1.07 0.98 1.08 0.95 0.78 0.84 1.08 1.00 0.92 0.85 1.02 2005Q3 0.96 1.09 0.94 1.24 1.17 1.23 0.98 1.09 0.99 1.11 0.97 0.80 0.86 1.12 1.01 0.94 0.86 1.04 2005Q4 0.98 1.13 1.01 1.30 1.21 1.27 1.02 1.15 1.02 1.16 1.01 0.84 0.89 1.18 1.06 0.99 0.89 1.08 2006Q1 1.02 1.17 1.06 1.33 1.25 1.34 1.04 1.19 1.05 1.19 1.06 0.87 0.91 1.25 1.08 1.04 0.92 1.12 2006Q2 1.05 1.20 1.06 1.32 1.44 1.35 1.03 1.19 1.05 1.19 1.07 0.89 0.90 1.25 1.09 1.05 0.93 1.15 2006Q3 1.05 1.21 1.11 1.33 1.46 1.38 1.06 1.21 1.08 1.21 1.09 0.93 0.91 1.28 1.11 1.06 0.95 1.17 2006Q4 1.05 1.21 1.10 1.33 1.46 1.38 1.05 1.20 1.08 1.20 1.09 0.92 0.91 1.27 1.12 1.06 0.95 1.16 2007Q1 1.06 1.21 1.09 1.34 1.46 1.39 1.05 1.20 1.08 1.21 1.10 0.93 0.92 1.28 1.14 1.06 0.95 1.17 2007Q2 1.06 1.24 1.09 1.34 1.48 1.41 1.05 1.20 1.09 1.23 1.12 0.96 0.92 1.30 1.14 1.06 0.95 1.18 2007Q3 1.08 1.25 1.10 1.35 1.49 1.41 1.06 1.22 1.09 1.24 1.13 0.94 0.92 1.31 1.15 1.07 0.96 1.19 2007Q4 1.06 1.26 1.13 1.35 1.51 1.44 1.09 1.27 1.12 1.27 1.15 0.95 0.94 1.33 1.18 1.09 0.98 1.20 2008Q1 1.08 1.31 1.18 1.37 1.54 1.44 1.14 1.35 1.15 1.31 1.19 0.97 0.97 1.35 1.23 1.12 1.00 1.22 2008Q2 1.12 1.33 1.19 1.39 1.55 1.42 1.18 1.36 1.17 1.33 1.22 1.02 0.99 1.39 1.27 1.18 1.02 1.25 2008Q3 1.12 1.37 1.24 1.45 1.57 1.42 1.25 1.43 1.22 1.38 1.27 0.97 1.03 1.44 1.33 1.26 1.09 1.28 2008Q4 1.13 1.33 1.18 1.44 1.56 1.38 1.20 1.37 1.19 1.33 1.26 0.94 0.99 1.42 1.31 1.21 1.07 1.26 2009Q1 1.12 1.28 1.12 1.40 1.53 1.35 1.15 1.30 1.16 1.31 1.23 0.92 0.97 1.34 1.32 1.17 1.04 1.24 2009Q2 1.18 1.31 1.13 1.41 1.52 1.37 1.15 1.29 1.17 1.32 1.26 0.93 0.98 1.34 1.33 1.16 1.04 1.26 2009Q3 1.18 1.33 1.17 1.46 1.53 1.43 1.19 1.34 1.19 1.38 1.31 0.97 1.00 1.39 1.36 1.20 1.06 1.28 2009Q4 1.18 1.37 1.20 1.50 1.55 1.47 1.22 1.40 1.21 1.39 1.33 1.06 1.01 1.43 1.45 1.19 1.07 1.31 2010Q1 1.22 1.41 1.22 1.52 1.58 1.50 1.24 1.44 1.22 1.42 1.35 1.15 1.03 1.45 1.38 1.22 1.10 1.34 2010Q2 1.27 1.45 1.22 1.54 1.60 1.56 1.25 1.48 1.22 1.44 1.38 1.23 1.05 1.46 1.39 1.25 1.11 1.37 2010Q3 1.27 1.45 1.26 1.53 1.60 1.55 1.26 1.49 1.21 1.43 1.38 1.32 1.04 1.46 1.39 1.26 1.12 1.37 2010Q4 1.26 1.46 1.33 1.56 1.60 1.62 1.31 1.53 1.22 1.45 1.38 1.31 1.04 1.47 1.47 1.29 1.15 1.39 Source: Authors’ estimates. 30 | ADB Economics Working Paper Series No. 290 Appendix Table 7 and Appendix Figure 7: Services Quarterly Regional Price Index, 2005–2010 Minimum 0.89 Maximum 1.38 MinMax Ratio 0.65 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 Price Levels: Philippines Q1 2005 = 1.00 Levels: Price 0.70 0.60 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 Period Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 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 1.07 0.96 0.89 0.99 1.02 0.92 0.93 0.94 0.91 0.90 0.94 0.93 0.91 0.96 1.13 0.94 0.96 1.00 2005Q2 1.09 0.98 0.90 0.99 1.02 0.93 0.95 0.95 0.92 0.93 0.95 0.94 0.92 0.97 1.16 0.96 0.97 1.01 2005Q3 1.11 1.00 0.90 1.00 1.03 0.95 0.96 0.96 0.93 0.95 0.96 0.96 0.93 0.99 1.17 0.97 0.99 1.03 2005Q4 1.12 1.02 0.91 1.03 1.05 0.97 0.97 0.98 0.93 0.97 0.97 0.98 0.95 1.00 1.20 0.99 1.00 1.04 2006Q1 1.14 1.04 0.92 1.04 1.06 0.99 0.99 1.00 0.94 0.99 0.98 1.00 0.96 1.02 1.22 1.02 1.02 1.06 2006Q2 1.15 1.05 0.93 1.06 1.07 1.00 1.00 1.01 0.95 1.01 0.99 1.01 0.97 1.03 1.23 1.02 1.03 1.07 2006Q3 1.17 1.06 0.94 1.07 1.08 1.01 1.02 1.02 0.95 1.02 1.01 1.03 0.98 1.04 1.25 1.03 1.04 1.09 2006Q4 1.17 1.07 0.94 1.07 1.08 1.01 1.01 1.02 0.95 1.01 1.01 1.02 0.98 1.05 1.26 1.03 1.04 1.09 2007Q1 1.18 1.07 0.95 1.08 1.08 1.01 1.01 1.02 0.95 1.01 1.01 1.02 0.98 1.05 1.26 1.03 1.04 1.09 2007Q2 1.18 1.08 0.95 1.10 1.09 1.02 1.02 1.02 0.95 1.02 1.02 1.03 0.99 1.05 1.27 1.04 1.04 1.10 2007Q3 1.19 1.08 0.95 1.10 1.09 1.04 1.04 1.03 0.96 1.02 1.04 1.04 0.99 1.06 1.28 1.04 1.05 1.11 2007Q4 1.20 1.09 0.96 1.11 1.10 1.05 1.04 1.04 0.97 1.03 1.04 1.05 1.00 1.07 1.29 1.04 1.05 1.11 2008Q1 1.22 1.10 0.97 1.12 1.11 1.07 1.05 1.05 0.98 1.05 1.05 1.04 1.02 1.06 1.31 1.06 1.07 1.13 2008Q2 1.23 1.12 0.98 1.15 1.13 1.08 1.06 1.07 0.99 1.08 1.07 1.07 1.05 1.07 1.34 1.08 1.09 1.14 2008Q3 1.25 1.14 1.00 1.17 1.15 1.11 1.09 1.10 1.02 1.12 1.09 1.08 1.07 1.10 1.38 1.11 1.12 1.17 2008Q4 1.24 1.13 1.00 1.16 1.15 1.09 1.07 1.09 1.01 1.10 1.09 1.08 1.06 1.09 1.35 1.10 1.11 1.16 2009Q1 1.23 1.12 1.00 1.15 1.14 1.08 1.06 1.08 1.00 1.08 1.09 1.07 1.05 1.08 1.31 1.10 1.11 1.15 2009Q2 1.25 1.13 1.00 1.16 1.15 1.09 1.08 1.09 1.01 1.10 1.10 1.08 1.07 1.08 1.33 1.10 1.12 1.16 2009Q3 1.27 1.14 1.01 1.17 1.16 1.10 1.09 1.11 1.02 1.12 1.11 1.10 1.08 1.10 1.35 1.13 1.14 1.18 2009Q4 1.27 1.15 1.01 1.17 1.17 1.11 1.10 1.12 1.02 1.13 1.11 1.11 1.08 1.10 1.35 1.14 1.14 1.18 2010Q1 1.28 1.15 1.02 1.18 1.18 1.12 1.11 1.12 1.03 1.14 1.11 1.12 1.09 1.10 1.33 1.15 1.15 1.19 2010Q2 1.28 1.16 1.02 1.19 1.18 1.13 1.11 1.13 1.03 1.15 1.11 1.13 1.09 1.11 1.34 1.15 1.16 1.19 2010Q3 1.29 1.16 1.02 1.19 1.19 1.13 1.12 1.13 1.03 1.14 1.12 1.13 1.09 1.11 1.34 1.15 1.16 1.20 2010Q4 1.29 1.16 1.02 1.19 1.20 1.13 1.12 1.14 1.03 1.14 1.12 1.14 1.09 1.12 1.35 1.16 1.16 1.20 Source: Authors’ estimates. Subnational Purchasing Power Parities toward Integration of International Comparison Program and Consumer Price Index: The Case of the Philippines | 31 Appendix Table 8 and Appendix Figure 8: Miscellaneous Items Quarterly Regional Price Index, 2005–2010 Minimum 0.93 Maximum 1.29 MinMax Ratio 0.73 1.40 1.30 1.20 1.10 1.00 0.90 Price Levels: Philippines Q1 2005 = 1.00 Levels: Price 0.80 0.70 0.60 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 Period Manila R1 R2 R3 R4A R5 R6 R7 R8 R9 R10 R11 R12 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 1.02 0.98 0.94 1.05 0.98 1.06 0.94 0.98 1.01 0.98 0.99 0.96 0.93 1.03 1.06 0.99 1.03 1.00 2005Q2 1.02 0.99 0.94 1.06 0.99 1.07 0.95 0.98 1.01 0.99 1.00 0.97 0.94 1.03 1.08 0.99 1.03 1.01 2005Q3 1.03 1.00 0.95 1.07 0.99 1.08 0.96 0.99 1.01 1.01 1.00 0.98 0.94 1.04 1.08 1.00 1.05 1.01 2005Q4 1.03 1.01 0.96 1.07 1.00 1.09 0.96 1.00 1.03 1.02 1.02 0.98 0.95 1.05 1.09 1.01 1.05 1.02 2006Q1 1.04 1.02 0.97 1.08 1.01 1.10 0.98 1.01 1.04 1.04 1.03 0.99 0.95 1.06 1.11 1.02 1.06 1.03 2006Q2 1.05 1.03 0.97 1.10 1.01 1.11 0.98 1.01 1.05 1.05 1.04 1.00 0.96 1.07 1.12 1.03 1.06 1.04 2006Q3 1.05 1.04 0.97 1.11 1.01 1.12 0.99 1.02 1.05 1.05 1.04 1.01 0.96 1.07 1.12 1.04 1.07 1.04 2006Q4 1.06 1.04 0.98 1.11 1.02 1.12 0.99 1.02 1.05 1.06 1.05 1.01 0.96 1.08 1.13 1.05 1.07 1.05 2007Q1 1.06 1.05 0.98 1.11 1.02 1.13 1.00 1.03 1.05 1.06 1.06 1.02 0.97 1.08 1.14 1.05 1.07 1.05 2007Q2 1.07 1.05 0.98 1.11 1.03 1.13 1.01 1.03 1.05 1.07 1.06 1.02 0.97 1.08 1.16 1.05 1.08 1.06 2007Q3 1.07 1.05 0.99 1.11 1.03 1.14 1.01 1.03 1.06 1.07 1.06 1.03 0.97 1.09 1.16 1.05 1.08 1.06 2007Q4 1.07 1.06 0.99 1.12 1.04 1.14 1.02 1.04 1.06 1.08 1.06 1.04 0.97 1.09 1.17 1.06 1.08 1.06 2008Q1 1.08 1.06 1.00 1.13 1.05 1.16 1.03 1.05 1.07 1.11 1.07 1.04 0.99 1.10 1.21 1.08 1.10 1.07 2008Q2 1.09 1.07 1.01 1.15 1.06 1.16 1.05 1.07 1.08 1.12 1.07 1.06 1.00 1.11 1.23 1.09 1.10 1.09 2008Q3 1.09 1.08 1.02 1.16 1.07 1.17 1.06 1.08 1.10 1.13 1.08 1.07 1.01 1.11 1.24 1.11 1.12 1.09 2008Q4 1.10 1.09 1.03 1.17 1.07 1.18 1.07 1.09 1.11 1.14 1.09 1.08 1.01 1.11 1.24 1.12 1.12 1.10 2009Q1 1.10 1.10 1.04 1.18 1.08 1.19 1.07 1.09 1.11 1.15 1.10 1.09 1.02 1.11 1.25 1.13 1.13 1.11 2009Q2 1.11 1.11 1.04 1.18 1.08 1.20 1.08 1.10 1.12 1.16 1.10 1.10 1.02 1.11 1.25 1.13 1.14 1.11 2009Q3 1.11 1.11 1.05 1.19 1.09 1.20 1.08 1.11 1.12 1.16 1.11 1.11 1.03 1.12 1.25 1.13 1.15 1.12 2009Q4 1.12 1.12 1.05 1.19 1.09 1.21 1.08 1.11 1.12 1.16 1.12 1.12 1.04 1.13 1.26 1.14 1.15 1.12 2010Q1 1.12 1.12 1.06 1.20 1.09 1.22 1.08 1.12 1.12 1.17 1.12 1.13 1.05 1.13 1.27 1.14 1.16 1.13 2010Q2 1.12 1.12 1.06 1.21 1.10 1.23 1.08 1.13 1.12 1.17 1.12 1.13 1.05 1.13 1.27 1.15 1.16 1.13 2010Q3 1.12 1.12 1.07 1.21 1.10 1.23 1.09 1.13 1.12 1.17 1.13 1.14 1.05 1.13 1.28 1.15 1.17 1.13 2010Q4 1.12 1.12 1.08 1.22 1.10 1.24 1.09 1.13 1.12 1.17 1.13 1.14 1.05 1.13 1.29 1.15 1.17 1.14 Source: Authors’ estimates. 32 | ADB Economics Working Paper Series No. 290 References !# /xxQ# ! "< X # % K &&&# %# ( ( ( - - & - 7 ( - - 7 # # ———. 2008. Asian Development ! "< X # % K % # %# ( ( ( ( - - # # NNN# /xx\# $ *I}/K ' -w 7 & X % # ! "< X # % K % # %# ( ( ( -*I}/-% " # O % ` < X [ < < < ' < $ ! " < $ F ! "# 2004. # ] # % K &&&# # ( % ( (% ( ( ( ( 7# # ' # /x))# $ ' % 7 )\\I ! /xxx ! # X # % K &&&# # # ( ( ( % # # ' !# /xx\# ' # +K X /xx*-% 7 ! Hx ] w # ' ! < X # % K &&&# %# # ( (/xx\(+# # F ! "# /xxQ# ICP 2003-2006 Handbook# % K #& % "# ( '$( (/Qxx+*-))}HH\+/x)}x)( I# # ———. 2008. Comparison Program# F < # % K #& % "# ( '$( ( - # % \Q \}H/} /%*Q}xIx% - # # About the Paper Yuri Dikhanov, Chellam Palanyandy, and Eileen Capilit analyze the plausibility of integrating the International Comparison Program with the consumer price index (CPI) by computing subnational purchasing power parities using regional prices and expenditure weights from the CPI for the Philippines. The study shows that prices collected for the CPI could be used to provide reliable estimates of price levels across regions, and that regional price movements are highly correlated. The substitution effect of using year 2000 expenditure weight, however, has not been explored in this study. About the Asian Development Bank ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to two-thirds of the world’s poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org/economics ISSN: 1655-5252 Publication Stock No. WPS124253 December 2011 < 0124 2539 > Printed on recycled paper Printed in the Philippines