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CALABARZON’s Inflation continues to slow down at 1.9 percent in April 2020

Release Date: May 31, 2020
Reference Number: 2020-0400-SR05
Figure 1. Inflation Rate on All Items in CALABARZON
(2012=100)

Inflation in the region for April 2020 was measured at 1.9 percent, lower by 0.4 percent index point than the recorded inflation of the previous month. In the same manner, this is 1.2 percent index points lower than the recorded inflation rate in the same month of 2019 at 3.1 percent. In contrast, this month’s inflation is 0.9 percent index point higher than the lowest inflation posted in September 2019 at 1.0 percent.

 

Table 1. Year-on-Year Inflation Rate by Province, All Items (2012=100)

Area

Apr 2020

Mar 2020

Apr 2019

CALABARZON

1.9

2.3

3.1

Batangas

1.7

2.6

4.0

Cavite

2.8

3.3

2.8

Laguna

0.5

0.8

2.5

Quezon

2.1

1.9

2.0

Rizal

2.7

2.5

3.5

The reduction in inflation rate of the region during the month can be traced from the recorded inflation rate of the three provinces that exhibited deceleration compared with the record in March 2020. The province of Laguna which recorded the lowest inflation across provinces in the region, experienced a slow down by 0.3 percent index point. Similarly, inflation rate in the province of Cavite slid down by 0.5 percent index point, while in Batangas, inflation rate is lower by 0.9 percent index point. The province of Quezon and Rizal both exhibited an acceleration of 0.2 percent index point. Compared with the recorded inflation in April 2019, all the provinces except Cavite and Quezon recorded deceleration.

 

Table 2. Year-on-Year Inflation Rates in CALABARZON, All Items, January 2015 to April 2020 (2012=100)

Month

 

 

Year

 

 

2015

2016

2017

2018

2019

2020

January

1.2

0.6

2.2

2.9

4.3

3.5

March

1.2

-0.1

3.2

3.5

3.8

2.6

April

1.2

0.0

3.7

3.6

3.3

2.3

April

0.8

0.0

3.6

3.9

3.1

          1.9

May

0.6

0.2

3.5

4.0

3.2

 

June

0.2

1.0

2.4

4.7

2.5

 

July

-0.3

1.2

2.2

5.9

2.2

 

August

-0.5

1.1

2.5

6.1

1.7

 

September

-0.9

1.6

3.1

6.2

1.0

 

October

-0.8

1.7

3.2

6.1

1.4

 

November

-0.2

1.9

3.0

5.8

1.4

 

December

0.5

1.8

2.9

4.8

3.1

 

Average

0.2

0.9

2.9

4.8

2.6

 

The year-on-year inflation rates revealed that the highest annual average was registered in 2018 at 4.8 percent while the lowest average rate was registered at 0.2 percent in 2015. April inflation rate was of record high in 2018 at 3.9 percent and went down in 2020 but still way above the record in 2015 and 2016.

Across all years and on a monthly basis, inflation in September 2018 at 6.2 marked the highest inflation so far since the rebasing of the consumer price index to base year 2012. More so, during the year 2018, the 2nd semester had the higher monthly inflation rates.

On the other hand, a five-month deflation was recorded in 2015 from July to November with inflation in the remaining seven-month period limited only to less than 2 percent. This scenario equated only to 0.2 percent annual inflation, the lowest so far during the past five years.

 

Figure 2. Inflation Rate in CALABARZON, by commodity group: 
March to April 2020 (2012=100)

Relative to their inflation in March 2020, seven commodity groups in the region exhibited lower inflation rates in April 2020, three commodity groups (Education, Communication, Health) sustained its inflation rate, and Food and Non-Alcoholic Beverages commodity group registered higher inflation rate.

The downtrend in the inflation in April 2020 was mainly brought about by the slower annual increase in the Alcoholic Beverages and Tobacco at 15.40 percent; Clothing and Footwear at 3.64 percent; Furnishings, Household Equipment and Routine Maintenance of the House at 2.48 percent; Recreation and Culture at 1.71 percent; and Restaurant and Miscellaneous Goods and Services at 2.80 percent.

Transport commodity group registered a deflation of 6.44 percent in April 2020 from its deflation of 3.13 percent in March 2020. Housing, Water, Electricity, Gas, and Other Fuels commodity group also exhibited deflation (-0.93 percent) for the reported month.

On the other hand, the heavily weighted Food and Non-Alcoholic Beverages commodity group grew faster by 0.57 percentage point pushing its inflation rate to 3.68 percent during the month in review. 

Meanwhile, Communication, Education, and Health commodity groups retained their previous month’s inflation rates at 0.50 percent, 3.57 percent, and 2.22 percent, respectively.

 

Table 4. Monthly Consumer Price Index for All Income Households in the Philippines, by Commodity Group, Area/Region: March and April 2019-2020 (2012=100)

A R E A  /  R E G I O N 

  All Items

APRIL

MARCH

2020

2019

2020

2019

Philippines

122.2

119.6

122.3

119.3

NCR- National Capital Region

119.2

117.8

119.4

117.4

Areas Outside NCR

123.1

120.1

123.1

119.9

Regions:

 

 

 

 

  CAR  -  Cordillera Administrative Region

121.5

117.7

120.8

117.4

  I  -  Ilocos Region

121.3

118.2

121.3

118.2

  II  -  Cagayan Valley

123.2

120.2

122.8

119.5

  III  -  Central Luzon

120.9

117.8

121.2

117.7

  IV-A  -  CALABARZON  

119.9

117.7

120.1

117.4

  MIMAROPA Region

124.7

121.1

124.9

121.1

  V  -  Bicol Region

124.2

120.5

124.2

120.3

  VI  -  Western Visayas

124.8

120.7

124.1

120.5

  VII  -  Central Visayas

125.9

122.9

126.1

122.6

  VIII  -  Eastern Visayas

128.0

124.9

127.2

124.5

  IX  -  Zamboanga Peninsula

126.9

123.8

127.0

123.8

  X  -  Northern Mindanao

126.5

124.8

126.8

124.3

  XI  -  Davao Region

123.4

120.7

122.9

120.2

  XII  -  SOCCSKSARGEN

127.8

123.4

126.8

122.9

  XIII  -  Caraga

122.9

119.5

122.6

119.1

  BARMM - Bangsamoro Autonomous Region in Muslim Mindanao

129.8

126.4

129.0

126.1

Consumer Price Index (CPI) is an indicator of change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year. It measures how much on the average, prices of goods and services have increased or decreased from a particular reference period.

CPI for All Items in the region for April 2020 was recorded at 119.9, a 1.9 percent increase over the record set in the same month a year ago at 117.7. On the contrary, CPI for All Items in the region during this month is 0.17 percent lower than the figure recorded in March 2020 at 120.1 or an equivalent decrease of 0.2 price index.

For areas outside NCR, price index for all items in CALABARZON for April 2020 at 119.9 was the lowest quoted CPI in the Philippines. BARMM remains to have the highest price index at 129.8 during the reported month, higher by 7.6 index points with the national average of 122.2 price index for all items.

Eight regions reported an increase in the CPI compared to the previous month’s record, SOCCSKSARGEN and BARMM with the highest reported increment of 1.0 index point and 0.8 index point, respectively. Ilocos Region and Bicol Region sustained their CPI with 121.3 index points and 124.2 index points, respectively.

 

 

Figure 3. Purchasing Power of Peso, All Items, by Province in CALABARZON:
March to April 2020 (2012=100)

Purchasing Power of Peso (PPP) shows how much the peso in the base period is worth in another period. It gives an indication of the real value of the peso in a given period relative to the peso value in the base period. Purchasing Power of Peso is inversely related to inflation rate. Thus, as inflation rate increases, PPP declines.

In April 2020, the PPP in the region was at its fifth-month constant state at P0.83. This means that the value of P1.00 in 2012 is only worth P0.83 in April this year.

During the month, two provinces in the region had sustained their PPP from the previous month, Laguna at P0.88 and Quezon at P0.81. The PPP in Laguna remains the strongest across provinces, followed by Rizal Province at P0.83, Batangas and Cavite at P0.82 and Quezon at P0.81. 

 

(SGD)
CHARITO C. ARMONIA
Regional Director
 

BFP/LOM/JAS

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