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. Benguet

Following the trend of the inflation at the national and regional level, inflation in Benguet further decreased to 6.4 percent in February 2023, from 6.9 percent in January 2023. In February 2022, inflation was higher at 7.2 percent. (Table B and Figure 2)

The main driver in the downtrend of inflation in February 2023 was the lower year-on-year increase in the index of food and non-alcoholic beverages at 9.7 percent, from 10.6 percent in January 2023.  This was followed by transport at 12.2 percent, from 14.6 percent, and restaurants and accommodation services at 4.4 percent, from the 4.7 percent in the previous month.

Relative to their annual rates in the previous month, decreases were also observed in the indices of the following commodity groups:

1. Clothing and footwear, 5.4 percent;
2. Furnishings, household equipment and routine household maintenance, 4.5 percent;
3. Health, 4.2 percent; and
4. Personal care, and miscellaneous goods and services, 5.0 percent.

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

1. Housing, water, electricity, gas and other fuels, 2.5 percent; and
2. Recreation, sport and culture, 5.2 percent.

Meanwhile, the rest of the commodity groups remained at their previous month’s annual rates. (Table 3)

Food inflation at the provincial level decreased to 10.0 percent in February 2023, from 10.9 percent in January 2023. In February 2022, food inflation stood at 7.5 percent. (Table 5,9)

The lower food inflation was mainly brought about by the decreased year-on-year growth in the index of vegetables, tubers, plantains, cooking bananas and pulses at 34.9 percent in February 2023, from 39.4 percent in January 2023. It was followed by rice at 4.1 percent, from 6.0 percent and meat and other parts of slaughtered land animals at -1.1 percent, from 0,9 percent in the previous month. Moreover, lower annual mark-ups were observed in the indices of the following food groups during the month:

1. Cereals, 3.8 percent;
2. Corn, -5.0 percent;
3. Oils and fats, 16.9 percent; and
4. Sugar, confectionery and desserts, 39.7 percent.

Meanwhile, higher annual growth rates were observed in the indices of the following food groups in February 2023:

1. Flour, bread and other bakery products, pasta products, and other cereals, 6.0 percent;
2. Fish and other seafoods, 4.9 percent;
3. Milk and other dairy products and eggs, 13.7 percent; and
4. Fruits and nuts, 12.7 percent.

Ready-made food and other food products not elsewhere classified remained at 5.4 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