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

Date: 

Friday, April 30, 2021

Reference Number: 

2021SR06

MARCH 2021 INFLATION REPORT OF MIMAROPA

(BASE YEAR: 2012)

 

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

Area

March 2021

February 2021

March 2020

Philippines

4.5

4.7

2.5

MIMAROPA

5.7

5.2

3.1

Marinduque

9.6

9.7

6.4

Occidental Mindoro

6.6

7.2

3.1

Oriental Mindoro

5.4

5.2

4.5

Palawan

4.0

3.9

1.4

Romblon

8.6

3.8

2.4

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 continued to increase, by 0.5 percentage point, recorded at 5.7 percent in March 2021. This was the highest inflation rate registered since January 2019. In the previous month, the year-on-year change was lower at 5.2 percent. In the same period of the previous year, it was posted at 3.1 percent. The uptrend of inflation in March 2021 was driven by the combined acceleration of selected commodity groups, mainly 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, 5.3%;
  • Clothing and Footwear, 6.7%;
  • Housing, Water, Electricity, Gas and Other Fuels, 4.1%;
  • Health, 4.6%;
  • Transport, 12.8%;
  • Communication 1.6%;
  • Recreation and Culture, 1.6%; and
  • Restaurants and Miscellaneous Goods and Services, 5.1%.

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, 13.4%;
  • Furnishings, Household Equipment and Routine Maintenance of the House, 3.4%;

The inflation rate of Education did not show a considerable difference from its respective annual figure from the previous month and retained 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 further exhibited a faster growth, at 5.4 percent in March 2021, from the 5.1 percent in the previous month. This was equivalent to a change of 0.3 percentage point. In March 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:

  • Rice, 3.1%;
  • Corn, 20.9%;
  • Meat, 14.8%;
  • Milk, Cheese and Eggs, 1.8%;
  • Oils and Fats, 2.1%;
  • Sugar, Jam, Honey, Chocolate and Confectionery, 3.3%; and
  • Food Products not elsewhere classified, 12.5%.

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

  • Fish and Seafood, 4.0%;
  • Fruit, 4.9%; and
  • Vegetables, 7.9%.

The index for other cereals, flour, cereal preparation, bread, pasta and other bakery products retained its annual figure of 4.4 percent from the previous month.

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 maintained at 0.76 in March 2021. The PPP registered at 0.80 in March 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 (March 2021) = [(CPI (March 2021) - CPI (March 2020)) / CPI (March 2020)] x 100%

                                        = [(132.0 – 124.9) / 124.9] x 100%

                              = (7.1 / 124.9) x 100%

                              ≈ 5.7%

 

(SGD) LENI R. RIOFLORIDO

Regional Director

MLB/OHG/APAR

 

Table 2. Year-on-Year Inflation Rates of MIMAROPA, by Commodity Group (2012=100)

Commodity Group

Year-on-Year Inflation (%)

March 2021

February 2021

March 2020

 

 

 

 

ALL ITEMS

5.7

5.2

3.1

 

 

 

 

  1. Food and Non-Alcoholic Beverages

5.3

5.0

-0.2

 

 

 

 

* Food

5.4

5.1

-0.3

Bread and Cereals

3.4

2.0

-6.8

     Rice

3.1

1.3

-8.6

     Corn

20.9

17.4

28.1

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

4.4

4.4

1.1

Meat

14.8

13.7

0.6

Fish and Seafood

4.0

4.7

7.0

Milk, Cheese and Eggs

1.8

1.6

2.4

Oils and Fats

2.1

1.8

0.7

Fruit

4.9

6.6

9.2

Vegetables

7.9

9.2

7.5

Sugar, Jam, Honey, Chocolate and Confectionery

3.3

3.2

-5.9

Food Products N.E.C.

12.5

12.1

0.9

* Non-alcoholic Beverages

3.0

2.5

2.4

 

 

 

 

  1. Alcoholic Beverages and Tobacco

13.4

16.4

26.5

  1. Clothing and Footwear

6.7

6.4

1.4

  1. Housing, Water, Electricity, Gas and Other Fuels

4.1

3.4

5.5

  1. Furnishings, Household Equipment and Routine Maintenance of the House

3.4

3.5

4.5

  1. Health

4.6

4.4

10.6

  1. Transport

12.8

10.4

5.8

  1. Communication

1.6

1.5

0.2

  1. Recreation and Culture

1.6

1.4

4.1

  1. Education

3.1

3.1

5.6

  1. Restaurants and Miscellaneous Goods and Services

5.1

4.1

3.4

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: March 2020 to March 2021 (2012=100)

Year

Purchasing Power of Peso

Month

 

 

2020

 

March

0.80

April

0.80

May

0.80

June

0.80

July

0.80

August

0.79

September

0.79

October

0.79

November

0.78

December

0.77

 

 

2021

 

January

0.76

February

0.76

March

0.76

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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