Starting February 2022, the Philippine Statistics Authority (PSA) released the rebased Consumer Price Index (CPI) for all income households to base year 2018, from base year 2012 as announced in the press release number 2022-01 dated 04 January 2022. The CPI series for all income households for January 2022 onwards will be 2018-based.
1. The Philippines
Headline inflation in the Philippines rose further from 4.9 percent in April 2022 to 5.4 percent in May 2022. This was the highest recorded inflation since December 2018. In May of the previous year, inflation was lower at 4.1 percent. (Table A)
2. Central Visayas
The inflation rate in Central Visayas exhibited a slower pace for May 2022 at 5.3 percent which was lower than the 5.4 percent annual increase in April 2022. This brings the regional average inflation from January to May 2022 at 5.2 percent. In May 2021, inflation was at 2.3 percent. (Table A, B and Figure 1)
In May 2022, only Central Visayas recorded a downtrend in its inflation among the 16 regions.
The deceleration in the region’s inflation rate in May 2022 was mainly driven by the decrease in Housing, Water, Electricity, Gas, and Other Fuels index at 3.5 percent, and Alcoholic Beverages and Tobacco index at 1.6 percent. (Table 3)
Lower annual increments were also observed in the following commodity groups: (Table 3)
a. Furnishing, Household Equipment and Routine Household Maintenance, 2.2 percent;
b. Restaurants and Accommodation Services, 1.2 percent.
c. Personal Care, and Miscellaneous Goods and Services index, 0.6 percent;
d. Health, 0.6 percent; and
e. Clothing and Footwear, 0.2 percent.
Meanwhile, higher annual increments were observed in the indices of Food and Non-Alcoholic Beverages and Transport at 6.4 percent 19.1 percent, respectively. (Table 3)
The rest of the commodity groups retained their previous month’s inflation rates. (Table 3)
Moreover, inflation for food at the regional level increased further to 6.8 percent in May 2022, from 6.7 percent in April 2022. In May 2021, food inflation was lower at 1.0 percent. (Table 7)
The uptick in the food inflation was primarily influenced by the annual growths in Fish and other seafood index at 8.4 percent, and Sugar, confectionery and desserts index at 7.5 percent. In addition, higher annual increments were recorded in the following food groups: (Table 5)
a. Oils and fats, 7.0 percent; and
b. Vegetables, tubers, plantains, cooking bananas and pulses; 0.2 percent.
The indices for rice and corn exhibited lower annual increases of 1.0 percent and 59.4 percent, respectively. The following food groups also recorded lower annual increments: (Table 5)
a. Meat and other parts of slaughtered land animals, 6.6 percent; and
b. Flour, bread and other bakery products, pasta products, and other cereals, 0.8 percent.
The following food groups declined during the month: (Table 5)
a. Fruit and nuts, -0.1 percent; and
b. Ready-made food and other food products n.e.c; -1.0 percent.
Milk, other dairy products and eggs retained its previous month’s inflation rate at -0.5 percent. (Table 5)
3. By Province
Among the provinces in Central Visayas, Province of Cebu posted the highest inflation rate at 8.3 percent in May 2022, followed by Siquijor at 6.8 percent, Negros Oriental at 4.9 percent, and Bohol at 4.8 percent. Inflation rate of City of Mandaue was at 3.2 percent. Both City of Cebu and City of Lapu-Lapu recorded the lowest inflation rate of 1.5 percent. (Figure 2)
The Philippine Statistics Authority generates and announces the monthly Consumer Price Index (CPI) based on a nationwide survey of prices for a given basket of goods and services. Two important indicators, the inflation rate and purchasing power of the peso (PPP), are derived from the CPI which are important in monitoring price stability and the value of the country’s currency.
The CPI is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.
Retail Price is the price at which a commodity is sold for spot in small quantities for consumption.
Base Period/Base Year is the period, usually a year, at which the index number is set to 100. It is the reference point of the index number series.
Market Basket is a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.
Weight is a value attached to a commodity or ground of commodities to indicate the relative importance of that commodity or group of commodities in the market basket.
Inflation Rate is equivalent to a decline in the purchasing power of the peso. It is the change in the CPI over a specific period of time (usually a month or a year). That is,
CPI1 - is the CPI in the previous period
CPI2 - is the CPI in the current period
Headline Inflation is the rate of change in the weighted average prices of all goods and services in the CPI basket.
(SGD.) ARIEL E. FLORENDO