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: July 2022 – July 2023 (2018=100)

1. Cordillera Administrative Region (CAR)

The inflation rate in Cordillera increased to 3.9 percent in August 2023 from 2.9 percent in July. This is the first month of a higher registered inflation rate after six consecutive months of deceleration from 7.9 percent in January 2023. Inflation in August 2022 was higher at 6.5 percent.

1.1 Main Drivers to the Upward Trend of Inflation in Cordillera

The acceleration of inflation in August 2023 was primarily brought about by the faster annual increase in Food and non-alcoholic beverages with an inflation rate of 8.9 percent, from 7.2 percent in July 2023. This was followed by Transport with a deflation rate of -0.2 percent, from -5.5 percent deflation in the previous month. (Table B and Figure 1).  
 

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

Among the 13 commodity groups, only four commodity groups recorded a higher annual growth rate compared to the previous month, however two of this commodity groups belongs to the heavy weighted commodities which contributed to the inflation uptrend.

The rest of the commodity groups recorded lower inflation rates during the month except for the two commodities that retained their previous rates and one with zero inflation rate. Other commodities with higher inflation rates were as follows:

a.    Restaurants and accommodation services, 6.5 percent from 5.5 percent; and

b.    Education services, 0.9 percent from 0.6 percent.

Commodity groups with lower inflation rates:

a.    Alcoholic beverages and tobacco, 6.5 percent from 6.9 percent;

b.    Clothing and footwear, 3.3 percent from 3.7 percent;

c.    Housing, water, electricity, gas and other fuels, -0.9 percent from 0.1 percent;

d.    Health, 2.4 percent from 2.9 percent;

e.    Recreation, sport and culture, 3.9 percent from 4.3 percent; and

f.     Personal care and miscellaneous good and services, 3.6 percent from 4.1 percent.

Commodity groups with retained rates:

a.    Furnishings, household equipment and routine household maintenance, 3.9 percent from 4.2 percent; and

b.    Information and communication, 0.1 percent from 0.1 percent.

Meanwhile, the annual rate in the Financial Services retained its annual rate of zero percent (Table B).

1.2 Main Contributors to Cordillera Inflation

In terms of contribution to the August 2023 inflation rate, it was dominated by the heavily weighted commodity of Food and non-alcoholic beverages with 82.2 percent share or 3.2 percentage points. This was followed by:

a.    Restaurants and accommodation services with 6.7 percent share or 0.3 percentage points.

b.    Personal care, and miscellaneous goods and services with a 4.0 percent share or 0.2 percentage points.

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

Among the provinces and highly urbanized city, only two provinces registered a slower growth rate for the month of August 2023. These provinces were Abra with 2.5 percent, from 2.9 the previous month and Mountain Province with 2.8 percent, from 3.6 percent the previous month.

Ifugao registered the highest acceleration in the region with 5.8 percent, from 3.9 percent in July 2023, which also meant that it was 1.9 percent higher than the previous month. This was followed by the province of Kalinga with 3.5 percent from 2.0 percent of the previous month or 1.5 percent higher. In addition, the following also recorded a higher inflation rate during the month of August 2023:

a.    Baguio City, 3.6 percent from 2.4 percent;

b.    Benguet, 4.4 percent from 3.3 percent; and

c.    Apayao, 4.6 percent from 4.3 percent.

2.    Food Inflation in CAR

Food inflation in the region rose to 8.9 percent in August 2023 from 7.2 percent in July 2023. In August 2022, food inflation was lower at 5.1 percent. (Table C). 
 

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

2.1 Main Drivers of the Higher Food Inflation

The primary contributor was the higher annual growth in the Vegetables, tubers, plantains, cooking bananas and pulses which increased to 43.1 percent from 30.7 percent in August 2023. This was followed by Rice with 4.5 percent, up from 2.6 percent and Fish and other seafood with 6.0 percent, up from 4.2 percent in the previous month. In addition, other food group with higher inflation rates were as follows:

1. Ready-made food and other food products n.e.c. , 4.8 percent from 4.6 percent; and
2. Corn, 8.6 percent from 7.7 percent.

In contrast, compared to the previous month's inflation rates, lower year-on-year growth rates were observed in the indices of the following food items:

1. Flour bread and other bakery products, pasta products, and other cereals, 7.8 percent from 8.5 percent;
2. Milk, other dairy products and eggs, 11.9 percent from 12.7 percent;
3. Oils and fats, 3.4 percent from 4.8 percent;
4. Fruits and nuts, 5.4 percent from 5.6 percent; and
5. Sugar, confectionery and desserts, 16.5 percent from 26.3 percent.

Meanwhile, the food group of Meat and other parts of slaughter land animals retained a -1.4 percent inflation rate.

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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