June 2022 Inflation Report of MIMAROPA (BASE YEAR: 2018)

Date: 

Thursday, July 7, 2022

Reference Number: 

2022SR31

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:
June 2021 to June 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 quickened for the sixth consecutive month, to 5.9 percent in June 2022, or a 0.6-percentage point increase from the inflation rate in the previous month. In the same reference month of the previous year, it posted at 4.2 percent. The uptrend of inflation in June 2022 was mainly driven by the combined acceleration in the indices for selected commodity groups such as food and non-alcoholic beverages at 5.9 percent, transport at 17.1 percent, and clothing and footwear at 4.7 percent. The inflation of health was recorded at 1.4 percent, the only deceleration among the commodity groups.

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

  • Alcoholic Beverages and Tobacco, 6.4%;
  • Housing, Water, Electricity, Gas and Other Fuels, 4.1%;
  • Furnishings, Household Equipment and Routine Maintenance of the House, 3.2%;
  • Information and Communication, 1.2%;
  • Recreation, Sport and Culture, 1.4%;
  • Restaurants and Accommodation Services; 4.2%; and
  • Personal Care, and Miscellaneous Goods and Services, 4.5%.

On the other hand, the indices of the following commodity groups maintained or were the same with the annual figures from the previous month:

  • Education Services; 0.0%; and
  • Financial Services, 0.0%.

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 6.1 percent in June 2022, from the 4.9 percent in the previous month. This was equivalent to a 1.2-percentage point increase. In June 2021, the food inflation rate was lower at 2.5 percent. Moreover, the uptrend in food inflation was mainly due to the faster growth in average prices of fruit and nuts at 10.2 percent, vegetables, tubers, plantains, cooking bananas and pulses at 12.5 percent, and meat and other parts of slaughtered land animals at 11.5 percent.

On the other hand, the annual index of rice exhibited a slower growth to 0.1 percent, while on the average, there was a recorded decrease in price of milk, other dairy products and eggs, with -0.4 percent inflation for June 2022.

PURCHASING POWER OF PESO

The Purchasing Power of Peso (PPP) in the MIMAROPA Region reduced to 0.84 in June 2022. The PPP registered at 0.89 in June 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:
June 2021 to June 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 (June 2022) = [(CPI (June 2022) - CPI (June 2021)) / CPI (June 2021)] x 100%

                              = [(118.6 – 112.0) / 112.0] x 100%

                              = (6.6 / 112.0) x 100%

                             ≈ 5.9%

 

(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 (%)

June 2021

May 2022

June 2022

 

 

 

 

 

 

ALL ITEMS

4.2

5.3

5.9

 

 

 

 

 

01

Food and Non-Alcoholic Beverages

2.6

4.9

5.9

 

* Food

2.5

4.9

6.1

 

Cereals and cereal products

(2.0)

1.1

1.1

 

     Rice

(3.6)

0.2

0.1

 

     Corn

20.4

4.1

5.6

 

Flour, bread and other bakery products,

pasta products, and other cereals

3.3

4.5

5.0

 

Meat and other parts of slaughtered land

animals

14.7

9.8

11.5

 

Fish and other seafood

8.2

6.9

7.0

 

Milk, other dairy products and eggs

3.6

0.1

(0.4)

 

Oils and fats

4.7

10.4

11.1

 

Fruit and nuts

(0.5)

3.7

10.2

 

Vegetables, tubers, plantains, cooking

bananas and pulses

(9.4)

9.3

12.5

 

Sugar, confectionery and desserts

2.0

10.4

13.6

 

Ready-made food and other food products

n.e.c.

6.2

5.8

6.5

02

Alcoholic Beverages and Tobacco

10.6

5.7

6.4

03

Clothing and Footwear

6.5

4.0

4.7

04

Housing, Water, Electricity, Gas and Other Fuels

3.7

4.0

4.1

05

Furnishings, Household Equipment and Routine Maintenance of the House

3.2

2.7

3.2

06

Health

5.6

1.5

1.4

07

Transport

10.8

15.6

17.1

08

Information and Communication

1.5

0.8

1.2

09

Recreation, Sport and Culture

2.4

0.9

1.4

10

Education Services

1.8

0.0

0.0

11

Restaurants and Accommodation Services

4.8

4.0

4.2

12

Financial Services

45.0

0.0

0.0

13

Personal Care, and Miscellaneous Goods and Services

3.3

4.2

4.5

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:
June 2021 to June 2022
(2018=100)

Year

Purchasing Power of Peso

Month

 

 

2021

 

June

0.89

July

0.89

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

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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