August 2022 Inflation Report of MIMAROPA (Base Year: 2018)

Date: 

Wednesday, September 7, 2022

Reference Number: 

2022SR37

Table 1. Year-on-Year Inflation Rates (%) in the Philippines and MIMAROPA Region,
by Province/Highly Urbanized City (HUC)
(2018=100)

Figure 1. Year-on-Year Inflation Rates (%) in MIMAROPA:
August 2021 to August 2022
(2018=100)

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

            The headline inflation rate at the regional level maintained at 7.1 percent in August 2022. In the same reference month of the previous year, it posted at 4.1 percent. The 7.1 percent inflation in August 2022 was mainly contributed by selected commodity groups such as (1) food and non-alcoholic beverages, with 7.9 percent inflation, (2) housing, water, electricity, gas, and other fuels, with 6.1 percent inflation, and (3) transport, with 13.0 percent inflation. The inflation of financial services was recorded at 0.0 percent, the only commodity group which retained its index.

 

INFLATION RATE BY COMMODITY GROUP

Figure 2. Year-on-Year Inflation Rates (%) in MIMAROPA,
by Commodity Group
(2018=100)

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

            Moreover, higher annual increments were noted in the inflation rates of the following commodity groups, when compared with the annual figures from the previous month:

  • Alcoholic Beverages and Tobacco, 8.4%;
  • Clothing and Footwear, 5.6%;
  • Furnishings, Household Equipment and Routine Maintenance of the House, 4.1%;
  • Health, 1.9%;
  • Information and Communication, 1.4%;
  • Recreation, Sport and Culture, 2.9%;
  • Education Services, 0.8%;
  • Restaurants and Accommodation Services; 5.4%; and
  • Personal Care, and Miscellaneous Goods and Services, 5.4%.

 

INFLATION RATE BY FOOD GROUP

Figure 3. Year-on-Year Inflation Rates (%) in MIMAROPA,
by Food Group
(2018=100)

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

            The region’s food index jumped to 8.1 percent in August 2022, from the 7.5 percent in the previous month. This was equivalent to a 0.6-percentage point increase. In August 2021, the food inflation rate was lower at 4.2 percent. Moreover, the uptrend in food inflation was mainly due to the faster growth in average prices of (1) rice at 4.3 percent, (2) sugar, confectionery and desserts at 33.3 percent, and (3) milk, other dairy products and eggs, at
4.2 percent.

On the other hand, there was a recorded slowdown of inflation for the following food groups:

  • Fish and other seafood, 10.2%;
  • Fruits and nuts, 2.6%; and
  • Vegetables, tubers, plantains, cooking bananas and pulses, 4.7%.

 

PURCHASING POWER OF PESO

            The Purchasing Power of Peso (PPP) in the MIMAROPA Region maintained at 0.83 in August 2022. The PPP registered at 0.89 in August 2021. As a result, the amount of goods that can be presently purchased by consumers were fewer compared to when the PPP was higher. Furthermore, the decrease in PPP was attributed to the higher inflation rate, given that they have an inverse relationship.
 

Figure 3. Purchasing Power of Peso in MIMAROPA Region:
August 2021 to August 2022
(2018=100)

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

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.
    • To determine the commodities that will form the market basket for the 2018-based CPI, the Survey of Key Informants (SKI) was conducted in March 2021. The survey, which was conducted nationwide to store managers, sellers or proprietors, obtained information on the most commonly purchased of goods and availed of services by the households.
    • The commodities in the 2018-based CPI market basket are grouped/classified according to the 2020 Philippine Classification of Individual Consumption According to Purpose (PCOICOP) which is based on the United Nations COICOP. Meanwhile, the commodities in the 2012-based CPI market basket used the 2009 PCOICOP version of classification of commodities.

 

  • Base year is a reference 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 rebased from base year 2012 to base year 2018.

 

  • 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 (August 2022) = [(CPI (August 2022) - CPI (August 2021)) / CPI (August 2021)] x 100%

                              = [(120.8 – 112.8) / 112.8] x 100%

                              = (8.0 / 112.8) x 100%

                              ≈ 7.1%

 

(SGD) LENI R. RIOFLORIDO
Regional Director

 

OHG/APAR

Table 2. Year-on-Year Inflation Rates of MIMAROPA, by Commodity Group (2018=100)

Division

Commodity Group

Year-on-Year Inflation (%)

August 2021

July 2022

August 2022

 

 

 

 

 

 

ALL ITEMS

4.1

7.1

7.1

 

 

 

 

 

01

Food and Non-Alcoholic Beverages

4.1

7.4

7.9

 

* Food

4.2

7.5

8.1

 

Cereals and cereal products

(3.1)

2.3

5.0

 

     Cereals

(4.5)

1.2

4.4

 

        Rice

(4.7)

1.2

4.3

 

        Corn

20.8

6.7

6.9

 

Flour, bread and other bakery products,

pasta products, and other cereals

2.5

6.5

7.7

 

Meat and other parts of slaughtered land

animals

13.5

11.5

11.9

 

Fish and other seafood

9.7

12.6

10.2

 

Milk, other dairy products and eggs

2.0

2.8

4.2

 

Oils and fats

5.5

15.3

17.9

 

Fruit and nuts

7.4

9.0

2.6

 

Vegetables, tubers, plantains, cooking

bananas and pulses

9.5

7.6

4.7

 

Sugar, confectionery and desserts

2.0

24.5

33.3

 

Ready-made food and other food products

n.e.c.

5.2

6.3

6.8

02

Alcoholic Beverages and Tobacco

9.5

7.9

8.4

03

Clothing and Footwear

4.8

5.0

5.6

04

Housing, Water, Electricity, Gas and Other Fuels

1.3

6.0

6.1

05

Furnishings, Household Equipment and Routine Maintenance of the House

2.6

3.5

4.1

06

Health

4.6

1.7

1.9

07

Transport

9.8

16.7

13.0

08

Information and Communication

1.2

1.1

1.4

09

Recreation, Sport and Culture

1.5

2.3

2.9

10

Education Services

1.8

0.0

0.8

11

Restaurants and Accommodation Services

2.8

4.6

5.4

12

Financial Services

45.0

0.0

0.0

13

Personal Care, and Miscellaneous Goods and Services

2.9

5.0

5.4

Note: Values enclosed in parentheses () are negative
Source: Philippine Statistics Authority, Retail Price Survey (RPS) of Selected Commodities and Services for the Generation of Consumer Price Index (CPI)

 

Table 3. Purchasing Power of Peso in MIMAROPA Region:
August 2021 to August 2022
(2018=100)

Year

Purchasing Power of Peso

Month

 

 

2021

 

August

0.89

September

0.89

October

0.89

November

0.88

December

0.87

2022

 

January

0.86

February

0.86

March

0.86

April

0.85

May

0.85

June

0.84

July

0.83

August

0.83

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

 

 

 

 

 

 

 

 

 

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