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

Date: 

Friday, January 7, 2022

Reference Number: 

2022SR01

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

The headline inflation rate at the regional level continued to decelerate to 3.3 percent in November 2021, or a change of 0.5 percentage point from the inflation rate in the previous month. In the same reference month of the previous year, it was posted at 3.8 percent. The downtrend of inflation in November 2021 was driven by the combined deceleration of selected commodity groups such as the heavily-weighted food and non-alcoholic beverages.

 

INFLATION RATE BY COMMODITY GROUP

Lower annual gains were observed in the inflation rates of the following commodity groups when compared with the annual figures from the previous month:

  • Food and Non-Alcoholic Beverages, 3.5%;
  • Alcoholic Beverages and Tobacco, 6.8%;
  • Clothing and Footwear, 3.0%;
  • Housing, Water, Electricity, Gas and Other Fuels, 1.5%;
  • Furnishings, Household Equipment and Routine Maintenance of the House, 1.9%;
  • Health, 1.9%;
  • Transport, 7.4%;
  • Communication, -0.5%;
  • Recreation and Culture, 2.1%; and
  • Restaurants and Miscellaneous Goods and Services, 3.1%.

 

On the other hand, the index of education maintained at 0.0 percent for the month of November. There was no significant change compared to the annual figure from the previous month.

INFLATION RATE BY FOOD GROUP

The region’s food index further eased to 3.6 percent in November 2021, from the 4.3 percent in the previous month. This was equivalent to a change of 0.7 percentage point. In November 2020, the food inflation rate was significantly lower at 2.2 percent.

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

  • Corn, 15.8%;
  • Other Cereals, Flour, Cereal Preparation, Bread, Pasta and Other Bakery Products, 1.8%;
  • Meat, 13.4%;
  • Fruit, 2.9%;
  • Vegetables, 5.3%;
  • Sugar, Jam, Honey, Chocolate and Confectionery, 2.3%; and
  • Food Products not elsewhere classified, 1.5%.

On the other hand, the annual indices of the following food items grew faster, when compared with the annual figures from the previous month:

  • Rice, -2.0%;
  • Fish and Seafood, 8.3%;
  • Milk, Cheese and Eggs, 1.4%;

The index for oils and fats maintained at 5.2 percent in November. There was no significant change compared to the annual figure from the previous month.

PURCHASING POWER OF PESO

The Purchasing Power of Peso (PPP) in the MIMAROPA Region decreased to 0.75 in November 2021, after recording a slight increase, at 0.76, in the previous month. The PPP registered at 0.78 in November 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 decrease in PPP was attributed to the higher inflation rate, given that they have an inverse relationship.

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)) I CPI (reference month, previous year)] X 100%

For example,

INFLATION RATE (November 2021) = [(CPI (November 2021) - CPI (November 2020)) / CPI (November 2020)] X 100%

= [(132.6 — 128.4) / 128.4] x 100%

= (4.2 / 128.4) x 100%

=3.3%

 

(SGD) LENI R. RIOFLORIDO

Regional Director

 

OHG/APAR

 

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