1. Cordillera Administrative Region (CAR)

The inflation rate in Cordillera eased to 3.9 percent in May 2023 from 4.3 percent in April 2023. Inflation in May 2022 was higher at 6.9 percent.

1.1 Main Drivers to the Downward Trend of Inflation in Cordillera

Among the 13 commodity groups, the deceleration of inflation in May 2023 was primarily brought about by the index of Transport with 0.6 percent, from 4.1 percent in April 2023. This was followed by the Food and non-alcoholic beverages index with 7.1 percent, from 7.2 percent in the previous month. The third main driver of the inflation deceleration during the month was the index of Housing, water, electricity, gas and other fuels with 0.3 percent, from 0.4 percent in April 2023 (Table B and Figure 1).

Lower inflation rates during the month were also noted in the indices of the following commodity groups:

1. Health, 3.9 percent from 4.3 percent;
2. Personal care, and miscellaneous goods and services, 4.8 percent from 5.0 percent;
3. Alcoholic beverages and tobacco, 9.1 percent from 9.5 percent;
4. Clothing and footwear, 4.3 percent from 4.4 percent; and
5. Information and communication, 0.1 percent from 0.2 percent;

In contrast, higher inflation rates were observed in the following commodity groups:

1. Furnishings, household equipment and routine household maintenance, 4.6 percent from 4.5 percent; and
2. Recreation, sport and culture, 5.2 percent from 5.1 percent

Meanwhile, the index of Education, and the index of Restaurants and accommodation services retained their previous month increments with 0.6 percent and 6.7 percent, respectively. Similarly, the annual rate in the financial services index retained its annual rate of zero percent (Table B).

1.2 Main Contributors to Cordillera Inflation

In terms of contribution to the April 2023 inflation rate, the top three commodity groups were the following:

1. Food and non-alcoholic beverages with 66.2 percent share or 2.6 percentage points;
2. Restaurants and accommodation services with 6.9 percent share or 0.3 percentage points; and
3. Personal care, and miscellaneous goods and services 5.4 percent share or 0.2 percentage points.

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

Among the provinces and highly urbanized city, Mountain Province registered the highest deceleration in the region with 4.5 percent from 6.4 percent in April 2023, or 1.9 percent slower than the previous month. This was followed by Apayao with 6.1 percent from 7.5 percent of the previous month or 1.4 percent slower. In addition, the following also recorded a slower inflation rate during the month of May 2023:

a.   Abra, 4.6 percent;
b.   Kalinga, 4.1 percent; and
c.   Baguio City, 3.0 percent.

Meanwhile, Benguet and Ifugao recorded an increase in inflation with 3.8 percent and 4.4 percent, respectively.

Food inflation continued to decelerate to 7.1 percent in May 2023 from 7.4 percent in April 2023. In May 2022, food inflation was lower at 6.8 percent (Table C).

2.1 Main Drivers of the Food Inflation Downward Trend

The primary driver of the food inflation’s downward trend was the lower annual growth in the index of Vegetables, tubers, plantains, cooking bananas and pulses with 11.5 percent from 13.5 percent in April 2023. This was followed by Milk, other dairy products and eggs with 15.8 percent from 17.2 percent, and Rice with 2.5 percent from 2.2 percent.

Lower inflation rates during the month were also noted in the indices of the following food items:

a.    Sugar, confectionery and desserts, 34.2 percent from 36.6 percent;

b.    Fish and other seafood, 4.9 percent from 5.5 percent;

c.    Oils and fats, 9.2 percent from 10.2 percent;

d.    Fruits and nuts, 10.8 percent from 11.0 percent;

e.    Flour, bread and other bakery products, pasta products, and other cereals, 9.8 percent from 9.9 percent; and

f.     Ready-made food and other food products n.e.c., 4.2 percent from 4.5 percent;

On the other hand, two food items registered a higher annual growth rate with Meat and other parts of slaughtered land animals at 3.0 percent from 1.1 percent of the previous month and Corn at 12.2 percent from 12.1 percent in April 2023.

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Note:

CPI and inflation rates by province and selected city are posted on the PSA website (http://openstat.psa.gov.ph).

(SGD)
VILLAFE P. ALIBUYOG
Regional Director