Summary Inflation Report

Consumer Price Index

(2018=100)

Date of Release: June 9, 2022

Reference No. SR-2022-039

Table 1. Year-on-Year Inflation Rates, All ltems

ln percent

(2018=100)

1.      Philippines

Headline inflation in the Philippines rose further from 4.9 percent in April 2022 to 5.4 percent in May 2022. This was the highest recorded inflation since December 2018. ln May of the previous year, inflation was lower at 4.1 percent.

2.      Cordillera Administrative Region (CAR)

Following the trend at the national level, inflation in CAR rose to 6.9 percent in May 2022, from 6.3 percent in the previous month. ln May 2021, inflation in the region was observed at 2.8 percent. The higher inflation in the area was mainly due to the higher annual increase in the food and non-alcoholic beverages index at 6.4 percent in May 2022.

Also, contributing largely to the uptrend of inflation in the region was transport with an inflation rate of 24 percent in May 2022, from 22.4 percent in the previous month and 7.4 percent in the month of the previous year.

Annual hikes were likewise higher in the indices of the following commodity groups:

a)      Alcoholic beverages and tobacco, 6.9 percent;

b)     Housing, water, electricity, gas and other fuels, 6.5 percent

c)      Restaurants and accommodation services, 6.4 percent; and

d)     Personal care, and miscellaneous goods and services, 3.1 percent.

e)      Clothing and footwear, 2.9 percent;

f)       Recreation, sport and culture, 2.3 percent;

g)      Health, 2.0 percent;

3.      Ifugao

Inflation in Ifugao escalated to 5.6 percent in May 2022 from 5.4 percent in April 2022. The May 2022 inflation was the highest monthly rate recorded for the province since January 2022. In addition, May 2022 inflation was higher by 1.5 percentage points from 4.1 percent in May 2021 and 0.2 percentage points higher from 5.4 percent in April 2022. (Figure 1)

Figure 1. Inflation Rates, Ifugao, All Items (2018=100)

Transport services posted the highest inflation rate among the commodity groups at 20.0 percent. It was followed by Housing, Water, Electricity, Gas, and Other Fuels at 12.1 percent inflation rate and Restaurants and Accommodation Services at 10.6 percent.

Food and Non-Alcoholic Beverages deflated at 1.0 from 1.3 in April 2022 while Housing, Water, Electricity, Gas, and Other Fuels also deflated at 12.1 from 12.2 in April 2022.

In addition, contributing to the uptrend in the overall inflation during the period were the higher annual average growth in the indices of the following commodity groups: Clothing and Footwear, 5.4 percent;

a)      Furnishing, Household Equipment and Routine Household Maintenance, 3.1 percent;

b)      Health, 2.6 percent;

c)      Recreation, sport and culture, 1.9 percent;    

d)      Restaurants and Accommodation Services, 10.6 percent;

e)      Personal Care, and Miscellaneous Goods and Services, 1.7 percent.

Table 2. Year-on-Year Inflation Rates by Commodity Group:

Ifugao (2018 = 100) (In Percent)

In the base year 2018=100, there was an increase of 15.2 index points in the average retail price by a fixed basket of goods and services commonly purchased by the households.

Survey of Retail Prices of Commodities conducted by Philippine Statistics Authority (PSA) has generated a Consumer Price Index (CPI) of 115.2 in Ifugao as of May 2022, using 2018 as the base year. This indicates that the average cost of a basket of goods and services commonly purchased by a typical Filipino household in the different municipalities of Ifugao increased during the reference month.

Table 3. Year-on-Year Inflation Rates, All ltems

ln percent

(2018=100)

In Table 4, all the Commodity Groups increased in Consumer Price Index except Food and Non-Alcoholic Beverages, Housing, Water, Electricity, Gas, and Other Fuels, Information and Communication, Education Services and Financial Services.

Table 4. Year-on-Year Consumer Price Index for

All Income Households by Commodity Group,

Ifugao (2018=100)

The Purchasing Power of the Peso (PPP) is inversely related to Inflation Rate. Thus, as the Inflation Rate increases, the PPP declines.

The average PPP in Ifugao in May 2022 is at Php 0.87, or you need Php 1.15 [(1/87) *100] to buy the same product in 2018. Also, a basket of goods and services that can be bought with 100 pesos in 2018 is worth 115 pesos in May 2022.

Figure 2. Monthly Purchasing Power of Peso in Ifugao: May 2022 (2018 = 100)

DELANO C. BOLISLIS JR.

Chief Statistical Specialist