1. Philippines

Headline inflation in the Philippines slowed down to 8.6 percent in February 2023, from 8.7 percent in January 2023. In February 2022, inflation was lower at 3.0 percent. The average inflation rate for the first two months of the year stood at 8.65 percent.

Among the 13 commodity groups, transport was the sole driver of the downtrend of the overall inflation during the month, recording a 9.0 percent inflation rate in February 2023 from 11.1 percent inflation in January 2023.

In contrast, nine commodity groups showed higher inflation rates which includes the following:

1. Food and non-alcoholic beverages, 10.8 percent;
2. Alcoholic beverages and tobacco, 11.0 percent;
3. Clothing and footwear, 4.8 percent;
4. Furnishings, household equipment and routine household maintenance, 6.2 percent;
5. Health, 4.0 percent;
6. Information and communication, 0.8 percent;
7. Recreation, sport and culture, 4.4 percent;
8. Restaurants and accommodation services, 8.1 percent; and
9. Personal care, and miscellaneous goods and services, 5.3 percent.

2. Cordillera Administrative Region (CAR)

Inflation in the region decreased to 7.1 percent in February 2023, from 7.9 percent in January 2023. In February 2022, inflation was lower at 4.3 percent.

Decrease in the index of food and non-alcoholic beverages at 10.1 percent from 11.4 percent in January 2023 was the main driver in the downtrend of inflation in February 2023. This was followed by transport at 13.5 percent, from 16.3 percent and alcoholic beverages and tobacco at 9.5 percent from 9.6 percent in the previous month.

In contrast, the rest of the commodity groups either showed higher inflation rate or had the same inflation rate from the previous month.

3. Baguio City

Similar to the trend of the inflation at the national and regional level, inflation in Baguio City further decreased to 6.1 percent in February 2023, from 7.1 percent in January 2023. In February 2022, inflation was lower at 3.6 percent. (Table B and Figure 2)

The main driver in the downtrend of inflation in February 2023 was the higher year-on-year decrease in the index of food and non-alcoholic beverages at 12.6 percent, from 15.8 percent in January 2023.  This was followed by transport at 12.6 percent, from 15.9 percent, and clothing and footwear at 0.5 percent, from 0.6 percent in the previous month.

On the contrary, increases were observed in the index of the following:

1. Housing, water, electricity, gas and other fuels, 2.7 percent;
2. Furnishing, household equipment and routine household maintenance, 1.5 percent;
3. Health, 2.8 percent;
4. Recreation, sport and culture, 3.8 percent; and
5. Restaurants and accommodation services, 1.8 percent.

Meanwhile, the indices of alcoholic beverages and tobacco, information and communication, and personal care, and miscellaneous goods and services remained at their previous month’s annual rates of 10.2, 0.5, and 5.5 percent, respectively. Moreover, education services and financial services remained at 0.0 percent inflations rates. (Table 3)

Food inflation at the provincial level decreased to 13.0 percent in February 2023, from 16.6 percent in January 2023. In February 2022, food inflation stood at 6.5 percent. (Table 5,9)

The lower food inflation was mainly brought about by the decreased year-on-year index of vegetables, tubers, plantains, cooking bananas and pulses at 44.4 percent in February 2023, from 72.1 percent in January 2023. It was followed by fruits and nuts at 9.1 percent, from 12.7 percent, and rice at 6.6 percent, from 7.1 percent in the previous month. Moreover, decreased were observed in the indices of the following food groups during the month:

1. Cereals, 7.8 percent;
2. Meat and other slaughtered land animals, 3.3 percent;
3. Fish and other seafoods, 7.7 percent;
4. Oils and fats, 9.1 percent;
5. Sugar, confectionery and desserts, 28.8 percent; and
6. Ready-made food and other food products n.e.c, 6.8 percent.

Meanwhile, increased were observed in the indices of the following food groups in February 2023:

1. Corn, 49.2 percent;
2. Flour, bread and other bakery products, pasta products, and other cereals, 11.5 percent; and
3. Milk, other dairy products and eggs, 16.3 percent.

Note: CPIs and inflation rates by region, province and selected city are posted at the PSA website (https://openstat.psa.gov.ph/).

IMELDA L. BUYUCCAN
Chief Statistical Specialist