The inflation of the prices of goods and services in the region for the first time in over a year is lower the than the overall Philippine inflation of 6.9 percent. However, the inflation in the region increased in September 2022 to 6.6 percent from the previous month of August 6.5 percent, after easing for two months from 7.5 percent in June and 7.3 percent in July. In addition, the inflation rate in September 2021 of the region was lower at 5.4 percent.  (Table A and Figure 1)

The increase in the region’s inflation rate in September 2022 was primarily due to the higher annual growth rate in the index for transport at 25.7 percent, from 25.0 in the previous month. Moreover, the following commodity groups also contributed in the increase of the overall inflation in September 2022:

1. Restaurants and accommodation services, 7.7 percent;
2. Clothing and footwear, 3.4 percent;
3. Health, 3.0 percent;
4. Education Services, 1.6 percent and
5. Recreation, sport and culture, 3.8 percent.

Meanwhile, lower monthly inflation was noted in the indices of the following commodity groups during the month:

1. Furnishings, household equipment and routine household maintenance, 2.5 percent;
2. Food and non-alcoholic beverages, 4.7 percent;
3. Information and communication, 0.1 percent;
4. Alcoholic beverages and tobacco, 9.1 percent;

The rest of the commodity groups retained their previous month’s inflation rates. (Table 4)

2. Provinces/ Highly Urbanized City (HUC) in CAR

Mt. Province continued to post the highest inflation rate in the Cordillera region for September 2022 with 9.1 percent from 8.9 percent of the previous month. This is followed by Apayao at 8.0 percent, Benguet at 7.9 percent and Kalinga at 7.8 percent while Baguio City remains to have the lowest inflation rate at 4.6 percent.

Among the provinces including the city of Baguio, Kalinga recorded the highest increase in inflation from 7.1 percent in August to 7.8 percent in September 2022 or an increase of 0.7 percentage points.

The acceleration of the inflation rate in Kalinga was also primarily due to the higher annual growth rate in the index for transport at 31.0 percent, from 28.0 in the previous month. This was followed by food and non-alcoholic beverages with 4.8 percent annual growth from 3.2 percent in August 2022. Moreover, the following commodity groups also contributed in the higher inflation rate during the month of September 2022:

1. Restaurants and accommodation services, 13.3 percent;
2. Alcoholic beverages and tobacco, 14.5 percent;
3. Health, 6.4 percent;
4. Personal care, and miscellaneous goods and services, 4.1 percent;
5. Clothing and footwear, 4.7 percent;
6. Furnishings, household equipment and routine household maintenance, 2.2 percent;
7. Education services, 3.5 percent and
8. Recreation, sport and culture, 3.4 percent.

On the other hand, lower inflation was recorded in the following commodity groups in Kalinga:

1. Housing, water, electricity, gas and other fuels, 5.3 percent.
2. Information and communication, 0.1 percent.

The indices of the rest of the commodity groups either retained their previous month’s rates or had zero percent annual growth during the month. (Table 4)

Meanwhile Abra recorded the highest monthly decrease in inflation from 7.5 percent in August to 6.6 in September 2022 or a decrease of 0.9 percentage points. (Table A)

The deceleration of the inflation rate in Abra was brought about by the lower increase in the Housing, water, electricity, gas and other fuels indices mainly from the electricity, gas and other fuels at 32.3 percent, from 46.5 percent in the previous month or a decrease of 14.2 percentage points. Lower inflation rates were also observed in the following indices:

1. Restaurants and accommodation services, 5.1 percent;
2. Transport, 20.1 percent;
3. Health, 3.5 percent;
4. Alcoholic beverages and tobacco, 6.1 percent;
5. Furnishings, household equipment and routine household maintenance, 2.1 percent.
6. Personal care, and miscellaneous goods and services, 2.3 percent;
7. Information and communication, 0.0 percent.

On the other hand, higher inflation was recorded in the following commodity groups in Abra:

1. Food and non-alcoholic beverages, 3.3 percent;
2. Clothing and footwear, 0.7 percent;
3. Recreation, sport and culture, 2.2 percent.

The indices of the rest of the commodity groups either retained their previous month’s rates or had zero percent annual growth during the month. (Table 4)