The Relationship Between Consumer Price Index and Poverty Levels in the Philippines

Alvin S. Catahan (Bulacan State University)
Kent Daniel D. Carpio (Bulacan State University)
Kenneth Clark P. Cruz (Bulacan State University)
Kyle Vincent A. Melliza (Bulacan State University)
Trisha Kyle C. Balot (Bulacan State University)

International Journal of Multidisciplinary: Applied Business and Education Research
Vol. 7 No. 8 (2026): International Journal of Multidisciplinary: Applied Business and Education Rese

Analyzing the effects of Consumer Price Index (CPI) on levels of poverty in the Philippines gives insight into the economic situation of households. Changes in the CPI leads to changes in the general purchasing power of persons in the economy. This study analyzes the impact of changes in the CPI on levels of poverty in the Philippines. Due to unavailability of poverty data, this study utilizes Auto-regressive Integrated Moving Average (ARIMA) using RStudio to estimate and interpolate data gaps and perform temporal trend analysis. This study found that the increases in the CPI are associated with a decrease in poverty level suggesting that certain economic conditions linked with rising prices, such as increased economic activity or income adjustments, may contribute to poverty reduction. There is an inverse relationship between inflation and poverty. This study finds that the changes in the CPI directly impacts low income households in most cases.