The headline inflation rate at the regional level further slowed down to 3.8 percent in October 2021, or a change of 0.4 percentage point from the inflation rate in the previous month. In the same reference month of the previous year, it was posted at 3.0 percent. The downtrend of inflation in October 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, 4.2%;
- Alcoholic Beverages and Tobacco, 8.2%;
- Clothing and Footwear, 3.1%;
- Furnishings, Household Equipment and Routine Maintenance of the House, 2.0%;
- Health, 2.9%;
- Communication, -0.4%;
- Recreation and Culture, 3.2%;
- Education, 0.0%; and
- Restaurants and Miscellaneous Goods and Services, 3.3%.
On the other hand, higher annual increments were noted in the inflation rates of the following commodity groups, when compared with the annual figures from the previous month:
- Housing, Water, Electricity, Gas and Other Fuels, 1.9%;
- Transport, 7.9%;
INFLATION RATE BY FOOD GROUP
The region’s food index further decelerated to 4.3 percent in October 2021, from the 5.4 percent in the previous month. This was equivalent to a change of 1.1 percentage points. In October 2020, the food inflation rate was significantly lower at 0.7 percent.
Annual upticks were slower in the following food groups, when compared with the annual figures from the previous month:
- Rice, -2.3%;
- Corn, 19.0%;
- Other Cereals, Flour, Cereal Preparation, Bread, Pasta and Other Bakery Products, 1.9%;
- Meat, 13.5%;
- Fish and Seafood, 8.1%;
- Milk, Cheese and Eggs, 1.3%;
- Oils and Fats, 5.1%;
- Vegetables, 14.4%; and
- Food Products not elsewhere classified, 3.1%.
On the other hand, the annual indices of the following food items grew faster, when compared with the annual figures from the previous month:
- Fruit, 3.8%; and
- Sugar, Jam, Honey, Chocolate and Confectionery, 2.5%.
PURCHASING POWER OF PESO
The Purchasing Power of Peso (PPP) in the MIMAROPA Region bounced back to 0.76 in October 2021, after dropping to 0.75 in the previous month. The PPP registered at 0.79 in October 2020. As a result, the amount of goods that can be presently purchased by consumers were slightly higher compared to when the PPP was lower. Furthermore, the increase in PPP was attributed to the lower inflation rate, given that they have an inverse relationship.
- 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%
INFLATION RATE (October 2021) = [(CPI (October 2021) - CPI (October 2020)) / CPI (October 2020)] x 100%
= [(132.2 – 127.3) / 127.3] x 100%
= (4.9 / 127.3) x 100%
(SGD) LENI R. RIOFLORIDO