1. Cordillera Administrative Region (CAR)

The inflation rate in Cordillera continued to slow down for the fifth month as it eased down to 3.2 percent in June 2023 from 3.9 percent in May 2023. Inflation in May 2022 was higher at 7.5 percent.

1.1 Main Drivers to the Downward Trend of Inflation in Cordillera

Among the 13 commodity groups, the deceleration of inflation in June 2023 was primarily brought about by the faster annual decrease in Transport with -2.8 percent, from 0.5 percent in May 2023. This was followed by Food and non-alcoholic beverages with 6.6 percent, from 7.1 percent in the previous month. The third main driver of the inflation deceleration during the month was the index of Restaurant and accommodation services with 6.0 percent, from 6.7 percent in May 2023 (Table B and Figure 1).  

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

a.    Health, 3.2 percent from 3.9 percent;

b.    Housing, water, electricity, gas and other fuels, 0.2 percent from 0.3 percent;

c.    Alcoholic beverages and tobacco, 8.1 percent from 9.1 percent

d.    Personal care and miscellaneous good and services, 4.5 percent from 4.8 percent;

e.    Furnishings, household equipment and routine household maintenance, 4.2 percent from 4.6 percent;

f.     Clothing and footwear, 4.1 percent from 4.3 percent; and

g.    Recreation, sport and culture, 5.0 percent from 5.2 percent.
 

Commodity groups with retained rates:

a.    Information and communication, 0.1 percent from 0.1 percent; and

b.    Education services, 0.6 percent from 0.6 percent;

Meanwhile, the annual rate in the financial services index retained its annual rate of zero percent (Table B).

1.2 Main Contributors to Cordillera Inflation

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

a.    Food and non-alcoholic beverages with 73.7 percent share or 2.4 percentage points;

b.    Restaurants and accommodation services with 7.4 percent share or 0.2 percentage points; and

c.    Personal care, and miscellaneous goods and services 6.0 percent share or 0.2 percentage points.

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

All six provinces and the city of Baguio recorded lower inflation rates in the month of June. Kalinga registered the highest deceleration in the region with 2.2 percent, down from 4.1 percent in June 2023, reflecting a decrease of 1.9 percent compared to the previous month. Following closely was Apayao with 4.7 percent from 6.1 percent in the previous month, representing a decrease of 1.4 percent. Additionally, the following areas also recorded slower inflation rates during June 2023:

a.   Mountain Province, 3.3 percent;

b.   Ifugao, 3.2 percent;

c.   Abra, 0.5 percent;

d.  Benguet, 0.5 percent; and

e.  Baguio City, 0.5 percent

3. Food Inflation in CAR

Food inflation continued to decelerate, reaching 6.8 percent in June 2023, down from 7.1 percent in May 2023. In May 2022, food inflation was higher at 7.6 percent (Table C).

2.1 Main Drivers of the Lower Food Inflation

The primary contributor was the lower annual growth in the index of Meat and other parts of slaughtered land animals which decreased to 0.9 percent from 3.0 percent in May 2023. This was followed by Fruits and nuts with 7.5 percent, down from 10.8 percent and Sugar, confectionery, and desserts with 32.1 percent, down from 34.2 percent in the previous month.

Lower inflation rates were also observed in the indices of the following food items:

1. Milk, other dairy products and eggs, 14.9 percent from 15.8 percent;
2. Oils and fats, 6.8 percent from 9.2 percent;
3. Flour Bread and Other Bakery Products, Pasta Products, and Other Cereals, 9.3 percent from 9.8 percent; and
4. Corn, 11.3 percent from 12.2 percent.

Meanwhile, compared to the previous month's inflation rates, higher year-on-year growth rates were observed in the indices of Rice with 2.3 percent, up from 2.2 percent; Fish and other seafood with 5.2 percent, up from 4.9 percent; Vegetables, tubers, plantains, cooking bananas, and pulses with 14.2 percent, up from 11.5 percent; and Ready-made food and other food products n.e.c. with 4.4 percent, up 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)
VILLAFE P. ALIBUYOG
Regional Director