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 2023 onwards will be 2018-based.
A. Philippines
The country’s inflation rate has increased to 5.3 percent in August 2023 from 4.7 percent in July 2023. Despite the increase, the inflation rate in August 2022 was still higher at 6.3 percent. The year-to-date average inflation rate, that is from January to August 2023, stood at 6.6 percent. (Table A)
B. Central Visayas
Central Visayas has retained its previous month’s inflation rate at 4.1 percent. In August 2022, the inflation rate was higher at 7.4 percent. (Table A)
C. Province of Negros Oriental
1. Headline Inflation
Headline inflation or the overall inflation in Negros Oriental has increased to 6.8 percent in August 2023 from 5.9 percent in July 2023. The inflation rate in August 2022 was observed at 6.7 percent. This brings the average inflation rate from January to August 2023 to 6.9 percent. (Figure 1)
The province’s inflation rate was higher than the region’s inflation rate. (Table 1)
1.1 Main Drivers to the Upward Trend of the Headline Inflation
Among the 13 commodity groups, the upward trend of the overall inflation during the month was mainly brought about by Food and Non-Alcoholic Beverages at 6.3 percent from 4.7 percent. Transport ranked second at -2.0 percent from -8.1. Followed by Recreation, Sport, and Culture at 5.1 percent from 4.0 percent and Personal Care and Miscellaneous Goods and Services at 4.4 percent from 4.3 percent.
On the contrary, lower inflation rates were observed in the following commodity groups during the month:
a. Restaurants and Accommodation Services at 7.6 percent from 10.3 percent;
b. Alcoholic Beverages and Tobacco at 11.5 percent from 13.6 percent;
c. Health at 4.0 percent from 5.3 percent;
d. Housing, Water, Electricity, Gas and Other Fuels at 12.1 percent from 12.7 percent;
e. Information and Communication at 0.8 percent from 1.3 percent;
f. Furnishing, Household Equipment and Routine Household Maintenance at 4.9 percent from 5.1 percent; and
g. Clothing and Footwear at 7.0 percent from 7.1 percent.
On the other hand, two commodity groups have retained their previous month’s inflation rates and these were: Education Services at 2.2 percent; and Financial Services at 0.0 percent. (Table 3, Figure 2)
1.2 Main Contributors to the Provincial Inflation Rate
The top three commodity groups contributing to the August 2023 provincial inflation rate of 7.3 percent were the following:
a. Housing, Water, Electricity, Gas, and Other Fuels at 45.7 percent share or 3.1 percentage points;
b. Food and Non-Alcoholic Beverages with 36.4 percent share or 2.5 percentage points; and
c. Restaurants and Accommodation services at 5.5 percent share or 0.4 percentage point.
2. Food Inflation
Food inflation at the provincial level has increased to 6.1 percent in August 2023 from 4.3 percent in July 2023. In August 2022, food inflation was lower at 10.8 percent. (Tables 6 and 7)
2.1 Main Drivers to the Upward Trend of Food Inflation
The increased of food inflation in August 2023 was primarily influenced by Vegetables, Tubers, Plantains, Cooking Bananas and Pulses at 19.6 percent from 14.0 percent. This was followed by Rice at 6.3 percent from 2.2 percent. Also, contributing to the upward trend of food inflation in August 2023 was Fish at 5.9 percent from 2.0 percent in July 2023. Milk, Other Dairy Products, and Eggs ranked fourth at 6.9 percent from 6.6 percent. This was followed by Corn at 0.3 percent from -2.1 percent. Fruits and nuts ranked sixth at -8.3 percent from -15.4 percent.
Lower inflation rates during the month were also observed in the indices of the following food items: (Table 5)
a. Sugar, confectionary and desserts, 10.2 percent from 24.1 percent;
b. Oils and fats, 10.9 percent from 22.8 percent;
c. Ready-made food and other food products, 8.9 percent from 12.2 percent;
d. Flour, bread and other bakery products, pasta products, and other cereals, 12.2 percent from 14.0 percent; and
e. Meat and other parts of slaughtered animals, -2.2 percent from -1.9 percent.
2.2 Main Contributors to the Food Inflation
In terms of contribution to the August 2023 provincial inflation rate, food shared 0.33 percent or 4.3 percentage points. Of the food groups, the top contributors to inflation were the following:
a. Cereals and cereal products, which include rice, corn, flour, bread, and other bakery products, with 41.1 percent share or 2.51 percentage points;
b. Vegetables, tubers, plantains, cooking bananas and pulses (ND) with 27.1 percent share or 1.66 percentage points; and
c. Fish and other seafood with 17.9 percent share or 1.09 percentage points.
APPROVED BY:
(SGD.) ARIEL T. FORTUITO
Chief Statistical Specialist
