1. Philippines

Headline inflation or the overall inflation in the Philippines slowed down further to 7.6 percent in March 2023 from 8.6 percent in February 2023. Inflation rate in March 2022 was lower at 4.0 percent. The average inflation for the first quarter of 2023 stood at 8.3 percent.

Among the 13 commodity groups, the continued downtrend of the overall inflation in March 2023 was mainly brought about by the heavily-weighted food and non-alcoholic beverages, which recorded a lower inflation rate of 9.3 percent from 10.8 percent in the previous month. This was followed by transport with an inflation rate of 5.3 percent from 9.0 percent in the previous month. The third primary driver of the downtrend of the headline inflation during the month was housing, water, electricity, gas and other fuels, which recorded a 7.6 percent inflation rate from 8.6 percent in February 2023.

Other commodity groups that contributed to the downtrend in the March 2023 headline inflation were health and information and communication commodity groups, which registered lower inflation rates during the month at 3.9 percent and 0.7 percent, respectively, compared with their previous month’s inflation rates.

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

          a. Alcoholic beverages and tobacco, 12.2 percent from 11.0 percent;

          b. Clothing and footwear, 5.0 percent from 4.8 percent;

          c. Recreation, sport and culture, 4.6 percent from 4.4 percent;

          d. Restaurants and accommodation services, 8.3 percent from 8.1  

percent; and

          e. Personal care, and miscellaneous goods and services, 5.6 percent

from 5.3 percent.

The indices of furnishings, household equipment and routine household maintenance; and education services retained their corresponding previous month’s annual increments at 6.2 percent and 3.6 percent. Similarly, the annual rate in the financial services index remained at zero percent.

2. Cordillera Administrative Region (CAR)

Inflation in the region decreased to 5.6 percent in March 2023, from 7.1 percent in February 2023. In March 2022, inflation was lower at 5.1 percent.

Decrease in the index of food and non-alcoholic beverages at 8.4 percent from 10.1 percent in February 2023 was the main driver in the downtrend of inflation in March 2023. This was followed by housing, water, electricity, gas and other fuels at 2.2 percent, from 4.1 percent and transport at 8.4 percent, from 13.5 percent in the previous month.

Also contributed to the downtrend are the following:

1. Restaurants and accommodation services, 6.4 percent;
2. Personal care, and miscellaneous goods and services, 4.8 percent; and
3. Clothing and footwear, at 4.3 percent.

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 4.7 percent in March 2023, from 6.4 percent in February 2023. In March 2022, inflation was higher at 8.3 percent. (Table B and Figure 2)

The main driver in the downtrend of inflation in March 2023 was the lower year-on-year increase in the index of food and non-alcoholic beverages at 7.5 percent, from 9.7 percent in February 2023.  This was followed by housing, water, electricity, gas and other fuels, at 0.6 percent, from 2.5 percent, and transport at 8.0 percent, from the 12.2 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, 4.8 percent;
2. Health, 3.8 percent; and
3. Personal care, and miscellaneous goods and services, 4.7 percent.

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

1. Alcoholic beverages and tobacco, 9.0 percent; and
2. Recreation, sport and culture, 5.5 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 7.7 percent in February 2023, from 10.0 percent in February 2023. In March 2022, food inflation stood at 9.1 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 13.2 percent in March 2023, from 34.9 percent in February 2023. It was followed by fish and other seafood at 3.7 percent, from 4.9 percent, and milk, other dairy products and egg at 13.1 percent, from 13.7 percent in the previous month. Moreover, lower annual mark-ups were observed in the indices of the following food groups during the month:

1. Sugar, confectionery and desserts, 39.0 percent; and
2. Corn, -10.0 percent.

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

1. Flour, bread and other bakery products, pasta products, and other cereals, 7.5 percent;
2. Meat and other parts of slaughtered animals, 0.3 percent;
3. Oils and fats, 17.0 percent;
4. Fruits and nuts, 16.1 percent; and
5. Ready-made food and other food products, 6.2 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

/SMB