2020 Inflation Report of MIMAROPA (Base Year: 2012)

Date: 

Monday, February 8, 2021

Reference Number: 

2021-02

2020 INFLATION REPORT OF MIMAROPA
(BASE YEAR: 2012)

 

Release Date: February 8, 2021

Reference No.: 2021-SR-02

 

Table 1. Year-on-Year Inflation Rates (%) in the Philippines and MIMAROPA, by Province, All Items: 2020 and 2019
(2012=100)

 

Reference Period

Philippines

MIMAROPA

Marinduque

Occidental Mindoro

Oriental Mindoro

Palawan

Romblon

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

January

2.9

4.4

3.2

5.6

7.2

3.5

2.6

7.2

4.4

4.2

1.4

7.0

4.0

4.2

February

2.6

3.8

3.2

5.2

6.1

3.5

2.6

7.5

4.6

3.9

1.4

6.4

3.6

4.2

March

2.5

3.3

3.1

4.7

6.4

2.6

3.1

6.5

4.5

3.6

1.4

5.4

2.4

5.0

April

2.2

3.0

3.0

4.5

4.8

2.9

2.9

6.0

4.8

3.4

1.2

5.1

2.6

5.2

May

2.1

3.2

3.1

4.7

4.2

3.7

2.4

6.2

3.7

3.9

2.5

4.8

3.2

5.4

June

2.5

2.7

3.3

5.2

5.5

4.8

2.4

6.3

4.6

4.0

2.3

5.7

3.3

5.6

July

2.7

2.4

2.9

4.9

7.2

4.4

1.6

5.1

2.5

5.1

2.4

4.6

3.3

5.6

August

2.4

1.7

3.1

4.6

6.6

4.6

4.1

3.9

2.7

4.7

2.2

4.8

3.3

4.2

September

2.3

0.9

3.2

2.2

6.5

2.1

4.1

2.5

2.6

1.7

2.6

2.6

2.2

2.1

October

2.5

0.8

3.0

1.1

6.7

1.7

4.0

1.8

2.3

0.6

2.2

1.0

2.9

1.9

November

3.3

1.3

3.8

1.8

7.4

2.8

4.6

2.7

4.0

2.1

2.7

0.7

3.2

2.2

December

3.5

2.5

4.4

2.6

7.1

5.7

6.3

2.1

4.7

2.8

3.0

1.4

3.8

4.0

Average

2.6

2.5

3.3

3.9

6.3

3.6

3.5

4.8

3.8

3.3

2.1

4.1

3.1

4.2


Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

 

MIMAROPA REGION

  • 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. The annual average consumer price index (CPI) in 2020 was recorded at 126.2 for the MIMAROPA region. The provinces of Marinduque, Occidental Mindoro, Oriental Mindoro, Palawan, and Romblon had 128.4, 122.9, 126.8, 127.3, and 123.6, respectively. This meant that the price of goods in 2020 significantly rose, with 2012 as the base year.
  • The inflation rate is the annual rate of change or the year-on-year change of the CPI expressed in percent. The highest recorded inflation rate of the region for 2020 was on the month of December, posted at 4.4 percent. Meanwhile, the month of July had the lowest recorded inflation rate, posted at 2.9 percent.
  • Along with the increase in prices was the decline in the purchasing power of peso. The purchasing power of the peso (PPP) shows how much the peso in the base period (i.e., 2012) is worth in the current period (i.e., 2020). It is computed as the reciprocal of the CPI for the period under review multiplied by 100. The average PPP in IMAROPA decreased to 0.79, from 0.82 in 2019.

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

 

  • The regional annual average inflation decelerated to 3.3 percent in 2020, from 3.9 percent in 2019. Lower annual average rates were observed in the indices of all the commodity groups, except for Health, Transport, and Education. The annual average inflation rates for Health and Education grew faster compared to the annual average from the previous year, posted at 8.3 percent and 3.6 percent, respectively. Meanwhile, Transport retained its annual average of 5.0 percent in 2020.

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

 

  • Compared to 2019, Marinduque and Oriental Mindoro were the only provinces in the region that had a higher annual average inflation rate. The other three provinces exhibited similar behavior of having lower annual average inflation rates. In 2020, Marinduque had the highest annual average, with 6.3 percent. On the other hand, Palawan posted the lowest annual average, with 2.1 percent.

 

BY COMMODITY GROUP, BY PROVINCE

Food and Non-Alcoholic Beverages

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

 

  • From the negative annual average of Oriental Mindoro in 2019, the index of the province grew faster to 1.5 percent. Romblon posted the highest annual average rate for food and non-alcoholic beverages, at 2.6 percent. Meanwhile, Palawan had the lowest annual average rate, dropping to -0.7 percent from 2.8 percent in 2019.

Table 2A. Year-on-Year Average Inflation Rates (%) for Food Groups, Philippines, MIMAROPA,
and by Province: 2020 and 2019
(2012=100)

Region

Province

Bread and Cereals

Rice

Corn

Other Cereals, Flour, Cereal Preparation, Bread, Pasta and Other Bakery Products

2020

2019

2020

2019

2020

2019

2020

2019

Philippines

-1.3

-1.6

-2.6

-3.0

-0.9

-2.5

2.4

3.3

MIMAROPA

-1.7

-1.1

-2.6

-2.1

17.8

16.9

2.8

3.8

Marinduque

-3.4

-1.9

-4.7

-2.9

12.5

2.4

2.3

2.8

Occidental Mindoro

-0.7

4.2

-1.5

4.5

11.0

4.9

1.7

2.4

Oriental Mindoro

-2.3

-2.8

-3.1

-4.0

8.3

21.6

1.4

2.9

Palawan

-1.3

-2.1

-2.7

-3.4

35.8

26.6

5.1

4.8

Romblon

-1.0

0.2

-1.5

-1.0

2.2

15.8

1.0

6.3

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

  • The average index for bread and cereals generally went down for all provinces. In addition, Occidental Mindoro showed the most extreme drop, going from 4.2 percent in 2019 to -0.7 percent in 2020 but remained as the province with the highest annual average rate for bread and cereals.
  • There was also a common downtrend of the average index for rice among the provinces and all registered negative annual average rates. Occidental Mindoro had the biggest decline, from 4.5 percent to -1.5 percent in 2020 but remained as the province with the highest average rate for rice, tied with Romblon.
  • On the other hand, the average index for corn increased for majority of the provinces. At 35.8 percent, Palawan had the highest considerable difference from the previous year, and Romblon had the lowest, at 2.2 percent.
  • For the subgroup of other cereals, flour, cereal preparation, bread, pasta and other bakery products, the average annual index decreased for all provinces, except Palawan, which registered the highest annual average rate. It showed a slight acceleration from 2019 and posted at 5.1 percent in 2020.

 

Table 2B. Year-on-Year Average Inflation Rates (%) for Food Groups, Philippines, MIMAROPA,
and by Province: 2020 and 2019
(2012=100)

Region

Province

Meat

Fish

Milk, Cheese and Eggs

Oils and Fats

Fruit

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

Philippines

4.4

3.5

6.1

4.2

3.0

2.7

2.0

2.4

8.0

5.5

MIMAROPA

1.7

2.2

0.2

0.7

2.4

2.7

1.0

1.2

5.9

15.6

Marinduque

-1.3

4.6

3.6

-0.6

1.7

3.2

0.2

0.8

20.0

0.2

Occidental Mindoro

3.5

5.7

3.0

4.5

4.8

5.6

-1.8

-1.3

9.2

9.0

Oriental Mindoro

2.4

0.5

2.8

-3.8

2.7

-1.7

0.1

1.9

6.6

8.6

Palawan

0.8

0.8

-5.0

1.2

1.6

5.4

1.8

0.9

2.4

29.0

Romblon

3.8

6.5

5.6

7.6

1.1

3.7

4.4

3.3

7.3

-2.5

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

  • Marinduque, Occidental Mindoro, and Romblon exhibited slowdown in meat price, where Marinduque reported to have the lowest annual average inflation rate, at -1.3 percent. Meanwhile, the price in Oriental Mindoro accelerated to 2.4 percent and Palawan retained at 0.8 percent.
  • The index for fish showed a general downtrend for the MIMAROPA provinces, except for Marinduque and Oriental Mindoro. Palawan had the lowest average and most extreme decline, from 1.2 percent in 2019 to -5.0 percent in 2020. On the other hand, Romblon, recorded at 5.6 percent, had the highest average inflation rate for fish.
  • Only Oriental Mindoro exhibited a faster growth in the price of milk, cheese and eggs, at 2.7 percent. There was a slowdown in Occidental Mindoro but it remained as the province with the highest annual average rate for milk, cheese and eggs in 2020, while Romblon reported the lowest, at 1.1 percent.
  • Three provinces showed slower growth for oils and fats, where Occidental Mindoro had the lowest annual average rate, at -1.8 percent. On the other hand, Romblon got the highest, at 4.4 percent.
  • There were significant increases and decreases of the index for fruit, where Marinduque reported the highest annual average, at 20.0 percent while Palawan reported the lowest annual average, at 2.4 percent for the food group.

Table 2C. Year-on-Year Average Inflation Rates (%) for Food Groups, Philippines, MIMAROPA,
and by Province: 2020 and 2019
(2012=100)

Region

Province

Vegetables

Sugar, Jam, Honey, Chocolate and Confectionery

Food Products, not elsewhere classified

Non-Alcoholic Beverages

2020

2019

2020

2019

2020

2019

2020

2019

Philippines

6.5

3.9

-0.5

1.3

5.7

5.8

10.8

5.6

MIMAROPA

5.4

2.8

0.0

0.1

6.1

6.5

2.6

10.4

Marinduque

8.1

3.8

1.0

-3.8

10.1

8.0

2.0

17.2

Occidental Mindoro

8.0

-2.6

-3.3

-0.9

4.6

8.9

1.4

9.1

Oriental Mindoro

10.6

-5.9

-2.4

-1.3

7.6

8.1

1.5

12.1

Palawan

0.2

9.8

2.3

2.3

5.2

4.7

10.8

9.4

Romblon

11.3

4.2

2.1

0.2

2.8

3.5

2.6

5.6

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

 

  • The average price of vegetables in 2020 generally accelerated for the MIMAROPA provinces, with respect to the previous year, except for Palawan. In addition, Palawan got the lowest average inflation rate for the food group, with 0.2 percent, while Romblon got the highest, with 11.3 percent.
  • Both the Mindoro provinces displayed a slower growth in the price of sugar, jam, honey, chocolate and confectionery. The opposite behavior was observed in Marinduque and Romblon. Palawan retained its annual average at 2.3 percent for the food group.
  • Majority of the MIMAROPA provinces exhibited a deceleration in the price for other food products, where Romblon registered the lowest annual average, at 2.8 percent. In contrast, there was an uptrend in the annual average indices of Marinduque and Palawan, the former having the highest with 10.1 percent.
  • For the annual average index of non-alcoholic beverages, there was a common downtrend in MIMAROPA, except for Palawan which reported the highest, at 10.8 percent, while Occidental Mindoro reported the lowest, at 1.4 percent.  

Alcoholic Beverages and Tobacco

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

  • The annual average price for alcoholic beverages and tobacco continued to increase but not as extreme compared to the previous year. Oriental Mindoro registered the highest annual average inflation for the commodity group, at 25.2 percent. Though only Romblon displayed an acceleration in the growth rate, it remained the lowest annual average among the provinces.

Clothing and Footwear

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

  • The annual average price for clothing and footwear generally exhibited a slower growth for all provinces, except Palawan which reported the highest index for the commodity group, at 7.2 percent. The faster growth in Palawan was due to the increase in prices for clothing and garments which sustained from June to December 2020. On the other hand, Oriental Mindoro had the lowest index and experienced the biggest drop, from 3.3 percent in 2019 to 0.7 percent in 2020.

Housing, Water, Electricity, Gas and Other Fuels

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

 

  • There was a general uptrend of the index for housing, water, electricity, gas, and other fuels for Marinduque, Occidental Mindoro, and Palawan. The increase of rent for housing, which maintained throughout the year, resulted in the spike of the average index in Marinduque, from 2.5 percent in 2019 to 9.3 percent in 2020, which was also the highest average in the region. On the other hand, Palawan got the lowest average, with 2.4 percent in 2020.

Furnishings, Household Equipment and Routine Maintenance of the House

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

  • Only Marinduque and Oriental Mindoro exhibited a slower growth in prices for furnishings, household equipment and routine maintenance of the house index, where the latter had the lowest annual average of 0.4 percent. The drop from 5.7 percent was due to the stagnant movement of prices for goods and services for routine household maintenance and household textiles, compared to the previous year. Meanwhile, Palawan had the highest annual average, posted at 7.5 percent in 2020 from 5.3 percent in 2019.

Health

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

  • Marinduque, Oriental Mindoro, and Palawan exhibited faster growth for the health index. Furthermore, Oriental Mindoro got the highest, with 10.6 percent and Palawan had the biggest jump from 2.1 percent in 2019 to 10.1 percent in 2020. The jump was due to the much faster growth of prices for outpatient and dental services compared to the previous year. On the other hand, Romblon registered the lowest annual average with 1.1 percent.

Transport

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

 

  • All provinces, except Marinduque, reported deceleration in the annual average index for transport and Occidental Mindoro had the lowest, at 0.8 percent. Meanwhile, the spike in prices of transport services, such as passenger transport by road, significantly contributed to the annual average index for Marinduque, from 6.2 percent in 2019 to 22.2 percent in 2020. 

Communication

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

  • Both Marinduque and Palawan recorded a faster growth in the index of communication, with the former having the highest annual average at 1.3 percent. In Palawan, the 1.0 percent index was due to the accelerated growth of prices for telephone and telefax services. On the contrary, Romblon reported the lowest annual average with 0.0 percent. This meant that there was no significant annual average growth in 2020 compared to 2019.

Recreation and Culture

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

  • For the index of recreation and culture, there was a general downtrend among the five provinces. Romblon had the lowest annual average, posted at 0.9 percent in 2020. Conversely, Marinduque posted the highest annual average among the five provinces, with 4.5 percent.

Education

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

  • There was a common uptrend in the index of education for the MIMAROPA provinces, except for Occidental Mindoro, where its annual average decelerated to 1.8 percent from 2.0 percent in 2019. Palawan registered the highest annual average with 6.4 percent.

Restaurant and Miscellaneous Goods and Services

Source: PSA, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

  • Only Romblon displayed a faster growth for the annual average index of restaurant and miscellaneous goods and services, from 2.7 percent in 2019 to 3.8 percent in 2020. Though Palawan had the biggest drop among the provinces, its index remained the highest annual average, posted at 4.5 percent. This was mainly due to the slower growth in the prices for catering services compared to the previous year.

 

TECHNICAL NOTES

Consumer Price Index is an indicator of the change in the average prices of a fixed basket of goods and services commonly purchased by households relative to a base year

Market Basket is a sample of goods and services, which is meant to represent the totality of all the goods and services purchased by households relative to a base year.

Determining the right market basket is crucial because inadequate representation of the typical basket will give wrong signals as to the behavior of prices, a very important factor in economic planning.

To determine the commodities that will form the market basket for the 2012-based CPI, the updating of the 2006 basket through the Survey of Key Informants was conducted from 07 October to 15 November 2013. The survey was conducted nationwide to store managers, sellers or proprietors and were asked of the most commonly purchased items or commodities. The commodities are grouped according to the 2010 Philippine Classification of Individual Consumption According to Purpose (PCOICOP) which is based on the United Nations COICOP.

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. The CPI is now rebased to 2012 base year from the 2006 base year.

The year 2012 was chosen as the base year because it was the latest year when the Family Income and Expenditure Survey (FIES) results were made available. It is also in accordance with the PSA Board Resolution No.1, Series of 2017-146, which approved the synchronized rebasing of the price indices to base year 2006 and every six (6) years thereafter.

Inflation Rate is the annual rate of change or the year-on-year change in the Consumer Price Index (CPI).

Purchasing Power of Peso is a measure of the real value of the peso in a given period relative to a chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100

INFLATION RATE(reference month, reference year)

= [(CPI(reference month, reference year) - CPI(reference month, previous year)) / CPI(reference month, previous year)] x 100%

For example,

INFLATION RATE(December 2020) = [(CPI(December 2020) - CPI(December 2019)) / CPI(December 2019)] x 100%

                                    = [(129.6 – 124.1) / 124.1] x 100%

                                    = (5.5 / 124.1) x 100%

                                    ≈ 4.4%

 

(SGD) LENI R. RIOFLORIDO

Regional Director

 

MLB/APAR

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