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:
December 2022 and December 2023 (2018=100)

1. Cordillera Administrative Region (CAR)

The inflation rate in Cordillera slowed down further to 2.8 percent in December 2023 from 3.3 percent in November 2023. This brings the regional average inflation of the Year 2023 to 4.5 percent. In December 2022, the inflation rate in the region was higher at 7.7 percent (Table A and Figure 1).

1.1 Main Drivers to the Downward Trend of Inflation in Cordillera

The deceleration of inflation in December 2023 was primarily brought about by the slower annual increase in heavy-weighted Food and Non-alcoholic Beverages with an inflation rate of 4.7 percent, from 6.7 percent in November 2023. This was followed by Alcoholic Beverages and Tobacco with an inflation rate of 4.6 percent, from 5.0 percent 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)

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

a.    Clothing and Footwear, 2.4 percent from 2.5 percent;
b.    Furnishings, Household Equipment and Routine Household Maintenance, 3.9 percent from 4.0 percent;
c.    Personal Care, and Miscellaneous Goods and Services, 2.9 percent from 3.0 percent; 
d.    Restaurants and accommodation services, 5.5 percent from 5.6 percent; and
e.    Information and Communication, 0.4 percent from 0.5 percent.

Commodity groups with faster/higher inflation rates:
a.    Housing, Water, Electricity, Gas and Other Fuels, -0.6 percent from -1.2 percent; and
b.    Transport, 1.5 percent from 0.5 percent; 

Commodity groups with retained rates:

a.    Health, 3.9 percent from 3.9 percent; 
b.    Recreation, Sport and Culture, 2.6 percent from 2.6 percent; and
c.    Education Services, 8.2 percent from 8.2 percent.

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 December 2023 inflation rate, it was dominated by the heavily-weighted commodity of Food and Non-alcoholic Beverages with 60.2 percent share or 1.6 percentage points to the 2.8 percent inflation in CAR. This was followed by:

a.    Education Services with 10.7 percent share or 0.3 percentage points.
b.    Restaurants and Accommodation Services with a 7.8 percent share or 0.2 percentage points.

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

Contrary to national and regional trends, Apayao and Ifugao registered higher inflation rates in December 2023 with 6.3 percent and 6.8 percent, respectively. Apayao posted an inflation rate of 4.8 percent the previous month, while Ifugao recorded 6.5 percent.

In contrast, Baguio City experienced a deceleration, from 3.0 percent in November 2023 to 2.1 percent, equivalent to 0.9 percentage points difference. Mountain Province followed with a decline of 0.8 percentage points, decelerating from 1.5 percent to 0.5 percent. Also, Abra and Benguet continued their downward trend to 1.8 percent (from 1.9 percent) and 3.5 percent (from 4.5 percent), respectively.

3. Food Inflation in CAR

Food inflation in the region slowed down to 4.8 percent in December 2023, from 6.9 percent in November 2023. In December 2022, food inflation was higher at 10.5 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 to the slowdown was the slower annual growth in Vegetables, Tubers, Plantains, Cooking Bananas and Pulses that slowed down to -7.4 percent from 9.5 percent in November 2023. This was followed by Fish and Other Seafood with 5.7 percent, from 6.3 percent and Sugar, Confectionery and Desserts with -5.8 percent, from -3.7 percent the previous month. 

The other food groups with slower inflation rates were as follows:

a.    Fruits and Nuts, 8.7 percent from 9.9 percent; 
b.    Oils and Fats, -2.2 percent from -1.7 percent; and
c.    Flour Bread and Other Bakery Products, Pasta Products, and Other Cereals, 4.3 percent from 4.8 percent.

Compared to the previous month's inflation rates, faster year-on-year growth rates were observed in the indices of the following food items: 

a.    Rice, 16.7 percent from 14.1 percent;
b.    Corn, 5.4 percent from 2.8 percent.
c.    Meat and Other Parts of Slaughtered Land Animals, 0.2 percent from 0.1 percent;
d.    Milk, Other Dairy Products and Eggs, 10.2 percent from 10.1 percent; and
e.    Ready-made Food and Other Food Products n.e.c.., 4.4 percent from 4.2 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)
ALDRIN FEDERICO R. BAHIT, JR.
(Chief Statistical Specialist)
Officer-In-Charge