1. Cordillera Administrative Region (CAR)

The inflation rate for the bottom 30% income households in Cordillera eased down to 6.1 percent in April 2023 from 7.7 percent in March 2023. This was
1.8 percentage points higher than the all-income inflation rate of 4.3 percent. Inflation for the bottom 30% in April 2022 was higher at 6.3 percent. 

1.1 Main Drivers to the Downward Trend of Inflation

The downtrend was primarily brought about by the index of heavily weighted food and non-alcoholic beverages with 7.0 percent, from 8.3 percent in March 2023. This was followed by the index of housing, water, electricity, gas and other fuels with 3.4 percent, from 6.8 percent in the previous month. The third primary driver of the downtrend of inflation during the month was the index of transport with 9.5 percent, from 12.9 percent in March 2023 (Table B).
 

Other commodity groups that contributed to the slower annual growth during the month were:

a.    Restaurants and accommodation services, 8.1 percent from 9.0 percent;

b.    Alcoholic beverages and tobacco, 9.4 percent from 9.8 percent; and

c.    Furnishings, household equipment and routine household maintenance, 5.0 percent from 5.4 percent.

In contrast, three commodity groups registered a higher inflation rate. These were the index of Clothing and footwear with 6.3 percent from 6.0 percent in the previous month, index of Health with 4.0 percent from 3.9 percent, and the index of Recreation, sport and culture with 8.3 percent from 7.9 percent.

Meanwhile, the indices of the following commodity groups retained their previous month’s annual growth rates:

1. Information and communication, 0.1 percent;
2. Education services, 1.2 percent;
3. Financial services, 0.0 percent; and
4. Personal care, and miscellaneous goods and services, 4.6 percent.

1.2 Main Contributors to the Bottom 30% Income Household 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 59.6 percent share or 3.6 percentage points;
2. Housing, water, electricity, gas and other fuels with 11.0 percent share or 0.7 percentage points; and
3. Transport with 9.8 percent share or 0.6 percentage points.

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

Among the provinces and highly urbanized city, all registered a deceleration with Kalinga having the highest registered inflation deceleration in the region with 6.9 percent from 9.3 percent in March 2023, or 2.4 percentage points slower than the previous month. This was followed by Mountain Province with 6.4 percent from 8.4 percent of the previous month, or 2.0 percentage points slower. In addition, the following also recorded a slower inflation rate during the month of April 2023:

1. Abra, 7.5 percent from 9.4 percent;
2. Apayao, 8.1 percent from 9.7 percent;
3. Benguet, 4.7 percent from 5.8 percent;
4. Baguio City, 5.1 percent from 6.1 percent; and
5. Ifugao, 4.2 percent from 5.1 percent.
    

3. Food Inflation

Food inflation for the bottom 30% income household in Cordillera continued to decelerate to 7.0 percent in April 2023 from 8.4 percent in March 2023. In April 2022, food inflation was lower at 3.9 percent  (Table. D).

2.1 Main Drivers to the Downward Trend of Food Inflation

The primary driver of slower food inflation was the lower annual growth in the index of vegetables, tubers, plantains, cooking bananas and pulses with 13.8 percent from 23.6 percent in March 2023. This was followed by sugar, confectionery and desserts with 45.2 percent from 48.9 percent the previous month, and meat and other parts of slaughtered land animals with 1.8 percent from 4.0 percent in the previous month.

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

1. Oils and fats, 10.2 percent from 10.3 percent;
2. Rice (under Food group), 2.3 percent from 2.4 percent; and
3. Corn (under Food group), 7.4 percent from 8.3 percent.

On the other hand, a higher annual growth rate was registered in the following:

1. Fruit and nuts, 9.1 percent from 7.6 percent;
2. Fish and other seafood, 6.6 percent from 6.0 percent;
3. Milk, other dairy products and eggs, 16.9 percent from 16.3 percent; and
4. Flour, bread and other bakery products, pasta products, and other cereals, 9.6 percent from 9.4 percent.

Meanwhile the index of Ready-made food and other food products n.e.c. retained its previous month’s annual rate of 3.6 percent (Table D).

2.2 Main Contributors to the Food Inflation

In terms of contribution to the April 2023 overall inflation for the income group, food shared 59.6 percent or 3.6 percentage points. Among the food groups, the top contributors to food inflation were the following:

1. Vegetables, tubers, plantains, cooking bananas and pulses, 21.2 percent share or 1.5 percentage points;
2. Sugar, confectionery and desserts, 18.6 percent share or 1.3 percentage points; and
3. Rice, 13.8 percent share or 1.0 percentage points.

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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