Table A: Year-on-Year Inflation Rates for All Items in CAR 
In Percent
(2018=100)

Figure 1: Inflation Rates in Cordillera Administrative Region, All Items:                 
March 2022 – March 2023 (2018=100)

1. Cordillera Administrative Region (CAR)

Inflation rate in Cordillera further eased to 5.6 percent in March 2023 from 7.1 percent in February 2023. Inflation in March 2022 was lower at 5.1 percent.

1.1 Main Drivers to the Downward Trend of Inflation in Cordillera

Among the 13 commodity groups, the continuous downtrend of inflation in March 2023 was mainly brought about by the heavily weighted index of Food and non-alcoholic beverages at 8.4 percent, from 10.1 percent in February 2023. This was followed by the index of Housing, water, electricity, gas and other fuels at 2.2 percent, from 4.1 percent in the previous month. The third primary driver of the inflation downtrend during the month was the index of Transport at 8.4 percent, from 13.5 percent in February 2023 (Table B and Figure 1).

Table B: Year-on-Year Inflation Rates for Commodity Group in CAR
In Percent (2018=100)

Other commodity groups that contributed to the downtrend of March 2023 inflation were the following:

1. Restaurants and accommodation services, 6.4 percent from 7.0 percent;
2. Personal care, and miscellaneous goods and services, 4.8 percent from 5.0 percent;
3. Clothing and footwear, 4.3 percent from 4.5 percent; and
4. Health, 3.8 percent from 4.0 percent.

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

1. Alcoholic beverages and tobacco,9.8 percent from 9.5 percent;
2. Furnishings, household equipment and routine household maintenance, 4.6 percent from 4.4 percent; and
3. Recreation, sport and culture, 5.0 percent from 4.9 percent.

The indices of Information and communication and Educational services retained their previous month’s increments at 0.2 percent and 0.6 percent, respectively. Similarly, the annual rate in the financial services index retained its annual rate of zero percent (Table B).

1.2 Main Contributors to the Headline Inflation

In terms of contribution to the March 2023 inflation rate, the top three commodity groups were the following:

a.    Food and non-alcoholic beverages with 54.3 percent share or 3.0 percentage points;
b.    Transport at 14.5 percent share or 0.8 percentage points; and
c.    Housing, water, electricity, gas and other fuels at 10.2 percent share or 0.6 percentage points.

2.    Food Inflation in CAR

Table C: Year-on-Year Inflation Rates for Food in CAR
In Percent (2018=100)

Food inflation in Cordillera continued to decelerate at 8.6 percent in March 2023 from 10.1 percent in February 2023. In March 2022, food inflation was lower at 4.0 percent (Table C).

2.1 Main Drivers to the Downward Trend of Food Inflation

The primary driver of food inflation downward trend was the lower annual growth in the index of Vegetables, tubers, plantains, cooking bananas and pulses at 21.7 percent from 37.6 percent in February 2023. This was followed by Sugar, confectionery and desserts at 39.5 percent from 42.0 percent, and Fish and other seafood at 4.8 percent from 5.8 percent.

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 10.5 percent; and
2. Corn, 12.8 percent from 13.3 percent;

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

1. Rice, 2.6 percent from 2.2 percent;
2. Flour, bread and other bakery products, pasta products, and other cereals, 9.6 percent from 9.1 percent;
3. Meat and other parts of slaughtered land animals, 3.4 percent from 3.1 percent;
4. Milk, other dairy products and eggs, 16.7 percent from 15.6 percent;
5. Fruits and nuts at 8.9 percent from 7.0 percent; and
6. Ready-made food and other food products not elsewhere classified, 4.5 percent from 4.2 percent.

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

Among the provinces and highly urbanized city, Kalinga registered the highest inflation deceleration in the region with 7.6 percent from 10.1 percent in February 2023, or 2.5 percentage points lower than the previous month. This was followed by Baguio City with 4.3 percent from 6.1 percent of the previous month and Mountain Province with 8.3 percent from 10.1 of the previous month, both 1.8 percentage points lower. In addition, the following also recorded a slower inflation rate during the month of March 2023:

a.    Benguet, 4.7 from 6.4 percent;
b.    Ifugao, 4.8 from 6.4 percent;
c.    Apayao, 9.5 percent from 9.9 percent; and
d.    Abra, 7.6 percent from 7.7 percent.

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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