1. Philippines

Headline inflation or the overall inflation in the Philippines slowed down further to 6.6 percent in April 2023 from 7.6 percent in March 2023. The inflation rate in April 2022 was observed at 4.9 percent. This brings the average inflation rate from January to April 2023 to 7.9 percent.

Among the 13 commodity groups, the downtrend of the overall inflation during the month was mainly brought about by the heavily weighted food and non-alcoholic beverages, which recorded a lower inflation rate of 7.9 percent from 9.3 in March 2023. Transport was the second top contributor with an inflation rate 2.6 percent from 5.3 percent in March 2023. The third primary driver in the slowdown of the headline inflation in April 2023 was housing, water, electricity, gas and other fuels, which recorded a 6.5 percent inflation rate from 7.6 percent in March 2023.

In addition, lower inflation rate was noted for furnishings, household equipment and routine household maintenance at 6.1 percent in April 2023 from 6.2 percent int the previous month.

On the contrary, higher inflation rates were observed in the following commodity groups during the month:

1. Alcoholic beverages and tobacco, 12.7 percent from 12.2 percent;
2. Clothing and footwear, 5.1 percent from 5.0 percent;
3. Health, 4.1 percent from 3.9 percent;
4. Recreation, sport and culture, 4.7 percent from 4.6 percent;
5. Restaurants and accommodation services, 8.6 percent from 8.3 percent; and
6. Personal care, and miscellaneous goods and services, 5.7 percent from 5.6 percent.

The indices of information and communication; and education services retained their corresponding previous month’s annual increments at 0.7 percent and 3.6 percent. Likewise, the annual rate in the financial services index remained at zero percent.

The top three commodity groups contributing to the April 2023 overall inflation of 6.6 percent were the following:

1. Food and non-alcoholic beverages with 45.3 percent share or 3.0 percentage points;
2. Housing, water, electricity, gas and other fuels at 21.1 percent share or 1.4 percentage points; and
3. Restaurants and accommodation services at 12.6 percent share or 0.8 percentage point.

2. Cordillera Administrative Region (CAR)

Inflation in the region further slowed down to 4.3 percent in April 2023, from 5.6 percent in March 2023. In April 2022, inflation was observed at 6.3 percent.

Lower inflation rate in housing, water, electricity, gas and other fuels at 0.4 percent from 2.2 percent in March 2023 was the main driver in the downtrend of inflation. This was followed by food and non-alcoholic beverages at 7.2 percent, from 8.4 percent and transport at 4.1 percent, from 8.4 percent in the previous month.

Also contributed to the downtrend are the following:

1. Alcoholic beverages and tobacco, 9.5 percent; and
2. Furnishing, household equipment and routine household maintenance, 4.5 percent.

In contrast, the rest of the commodity groups either showed higher inflation rate or had the same inflation rate from the previous month.

3. Benguet

Following the trend of the inflation at the national and regional level, inflation in Benguet further slowed down to 3.6 percent in April 2023, from 4.7 percent in March 2023. In April 2022, inflation was higher at 9.4 percent. (Table B and Figure 2)

The main driver in the downtrend of inflation in April 2023 was transport at 3.3 percent, from 8.0 percent in March 2023.  This was followed by housing, water, electricity, gas and other fuels, at -0.7 percent, from 0.6 percent, and food and non-alcoholic beverages at 6.7 percent, from the 7.5 percent in the previous month.

Relative to their annual rates in the previous month, decrease was also observed in the indices of furnishings, household equipment and routine household maintenance at 4.4 percent.

On the contrary, increases were observed in the index of the following:

1. Alcoholic beverages and tobacco, 10.4 percent;
2. Health, 4.4 percent;
3. Recreation, sport and culture, 5.9 percent;
4. Restaurants and accommodation services, 5.6 percent; and
5. Personal care, and miscellaneous goods and services, 5.4 percent.

Meanwhile, the rest of the commodity groups remained at their previous month’s annual rates. (Table 3)

Food inflation at the provincial level further decreased to 6.8 percent in April 2023, from 7.7 percent in March 2023. In April 2022, food inflation stood at 10.6 percent. (Table 5,9)

The lower food inflation was mainly brought about by meat and other parts of slaughtered land animals at -4.2 percent, from 0.3 percent in March 2023. It was followed by vegetables, tubers, plantains, cooking bananas and pulses at 12.2 percent, from 13.2 percent, and sugar, confectionery and desserts at 36.3 percent, from 39.0 percent in the previous month. Moreover, lower annual mark-ups were observed in the indices of the following food groups during the month:

1. Fruits and nuts, 14.6 percent;
2. Rice, 3.8 percent; and
3. Oils and fats, 16.8 percent.

Meanwhile, higher annual growth rates were observed in the indices of the following food groups in April 2023:

1. Flour, bread and other bakery products, pasta products, and other cereals, 8.5 percent;
2. Fish and other seafood, 5.6 percent; and
3. Milk, other dairy products and eggs, 15.4 percent.

    

Note: CPIs and inflation rates by region, province and selected city are posted at the PSA website (https://openstat.psa.gov.ph/).

IMELDA L. BUYUCCAN
Chief Statistical Specialist

/SMBP