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:
November 2022 and November 2023 (2018=100)

1. Cordillera Administrative Region (CAR)

The inflation rate in Cordillera slowed down further to 3.3 percent in November 2023 from 4.7 percent in October 2023. This brings the regional average inflation from January 2023 to November 2023 at 4.7 percent. In November 2022, the inflation rate in the region was higher at 7.6 percent. (Table A and Figure 1)

1.1 Main Drivers to the Downward Trend of Inflation in Cordillera

The deceleration of inflation in November 2023 was primarily brought about by the slower annual increase in heavy-weighted Food and Non-alcoholic Beverages with an inflation rate of 6.7 percent, from 9.6 percent in October 2023. This was followed by Transport with an inflation rate of 0.5 percent, from 1.9 percent in the previous month. Housing, Water, Electricity, Gas and Other Fuels with a deflation rate of -1.2 percent from -0.7 percent in the previous month, also contributed to the inflation downtrend. (Table B and Figure 1)

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

In addition, lower annual growth rates were noted in the indices of the following commodity groups during the month:

a.    Clothing and footwear, 2.5 percent from 3.2 percent;
b.    Furnishings, household equipment and routine household maintenance, 4.0 percent from 4.5 percent;
c.    Personal Care, and Miscellaneous Goods and Services, 3.0 percent from 3.3 percent; 
d.    Alcoholic Beverages and Tobacco, 5.0 percent from 5.6 percent; and
e.    Recreation, Sport and Culture, 2.6 percent from 2.8 percent.

Commodity groups with faster/higher inflation rates:

a.    Restaurants and accommodation services, 5.6 percent from 5.5 percent; and
b.    Health, 3.9 percent from 3.4 percent; 

Information and Communication, and Education Services retained their rates at 0.5 percent and 8.2 percent respectively. Meanwhile, the annual rate in the Financial Services retained an annual rate of zero percent (Table B).

1.2 Main Contributors to Cordillera Inflation

In terms of contribution to the November 2023 inflation rate, it was dominated by the heavily-weighted commodity of Food and Non-alcoholic Beverages with 73.0 percent share or 2.4 percentage points to the 3.3 percent inflation in CAR. This was followed by:

a.    Education Services with 9.1 percent share or 0.3 percentage points.
b.    Restaurants and Accommodation Services with a 6.8 percent share or 0.2 percentage points.

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

All provinces, including the highly urbanized city of Baguio, experienced a decline in their growth rates. Notably, Ifugao recorded the highest inflation rate, marking a decrease from 8.9 percent in the previous month to 6.5 percent. The heightened inflation in Ifugao is primarily attributed to substantial annual growth in the heavily-weighted commodity category of Food and Non-alcoholic Beverages, reaching 12.0 percent—the highest food inflation in the region. Following closely are Apayao, with a 4.8 percent inflation rate, and Benguet, with a 4.5 percent inflation rate. In contrast, Kalinga reported the region's slowest inflation rate at 0.7 percent.

Additionally, slower growth rates were observed in Baguio City, declining from 4.6 percent to 3.0 percent, and in Abra, which dropped from 2.7 percent to 1.9 percent in November 2023.

3. Food Inflation in CAR

Food inflation in the region slowed down to 6.9 percent in November 2023 from 10.0 percent in October 2023. In November 2022, food inflation was higher at 9.3 percent. (Table C). 

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

3.1 Main Drivers of the Slower Food Inflation Rate

The primary contributor was the slower annual growth in Vegetables, Tubers, Plantains, Cooking Bananas and Pulses that slowed down to 9.5 percent from 32.8 percent in October 2023. The other food group with slower inflation rates were as follows:

This was followed by Sugar, confectionery and desserts with -3.7 percent, from 0.5 percent and Sugar, Confectionery and Desserts with 0.5 percent from 6.8 percent the previous month. 

a.    Sugar, confectionery and desserts, -3.7 percent from 0.5 percent;
b.    Fruits and nuts, 9.9 percent from 11.7 percent;
c.    Fish and other seafood, 6.3 percent from 6.9 percent;
d.    Oils and Fats, -1.7 percent from -1.0 percent;
e.    Flour Bread and Other Bakery Products, Pasta Products, and Other Cereals, 4.8 percent from 5.3 percent; and
f.    Corn, 2.8 percent from 6.2 percent.

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

a.    Rice, 14.1 percent from 12.8 percent;
b.    Milk, Other Dairy Products and Eggs, 10.1 percent from 9.8 percent; and
c.    Ready-made Food and Other Food Products n.e.c.., 4.2 percent from 3.9 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