July 2021 Inflation Report of MIMAROPA (Base Year: 2012)

Date: 

Tuesday, August 31, 2021

Reference Number: 

2020SR14

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

Area

July 2021

June 2021

July 2020

Philippines

4.0

4.1

2.7

MIMAROPA

5.0

4.3

2.9

Marinduque

5.9

6.9

7.2

Occidental Mindoro

8.6

7.2

1.6

Oriental Mindoro

5.6

4.6

2.5

Palawan

1.9

1.7

2.4

Romblon

8.9

5.9

3.3

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 accelerated to 5.0 percent in July 2021, or a change of 0.7 percentage point from the inflation rate in the previous month. In the same reference month of the previous year, it was posted at 2.9 percent. The uptrend of inflation in July 2021 was driven by the combined faster growth of selected commodity groups such as the heavily-weighted food and non-alcoholic beverages.

 

BY COMMODITY GROUP

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

  • Food and Non-Alcoholic Beverages, 4.6%; and
  • Furnishings, Household Equipment and Routine Maintenance of the House, 3.2%.

On the other hand, lower annual gains were observed in the inflation rates of the following commodity groups when compared with the annual figures from the previous month:

  • Alcoholic Beverages and Tobacco, 11.0%;
  • Clothing and Footwear, 5.0%;
  • Health, 4.7%;
  • Transport, 8.7%;
  • Communication, 0.6%;
  • Recreation and Culture, 2.2%; and
  • Restaurants and Miscellaneous Goods and Services, 5.4%.

The index for housing, water, electricity, gas and other fuels retained at 4.2 percent while education maintained at 3.1 percent.

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

 

BY FOOD GROUP

The region’s food index jumped to 4.7 percent in July 2021, from the 2.7 percent in the previous month. This was equivalent to a change of 2.0 percentage points. In July 2020, the food inflation rate was significantly lower at 0.3 percent.

The annual indices of the following food items accelerated, when compared with the annual figures from the previous month:

  • Fish and Seafood, 13.1%;
  • Oils and Fats, 4.5%;
  • Fruit, -0.7%; and
  • Vegetables, 4.4%.

On the other hand, annual upticks were slower in the following food groups, when compared with the annual figures from the previous month:

  • Rice, -1.7%;
  • Corn, 18.3%;
  • Other Cereals, Flour, Cereal Preparation, Bread, Pasta and Other Bakery Products, 3.2%;
  • Meat, 15.8%;
  • Milk, Cheese and Eggs, 2.0%;
  • Sugar, Jam, Honey, Chocolate and Confectionery, 0.9%; and
  • Food Products not elsewhere classified, 7.2%.

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

 

PURCHASING POWER OF PESO

The Purchasing Power of Peso (PPP) in the MIMAROPA Region recorded at 0.76 in July 2021, the seventh consecutive month to maintain the value. The PPP registered at 0.80 in July 2020. 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 weakening of PPP was attributed to the higher consumer price index, given that they have an inverse relationship.

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.
    • 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 (July 2021) = [(CPI (July 2021) - CPI (July 2020)) / CPI (July 2020)] x 100%

                              = [(131.6 – 125.3) / 125.3] x 100%

                              = (6.3 / 125.3) x 100%

                        ≈ 5.0%

 

(SGD) LENI R. RIOFLORIDO

Regional Director

 

OHG/APAR

 

 

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