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CALABARZON’s Inflation Rate climbed to 6.0 percent in August 2021

Release Date: September 24, 2021
Reference Number: 2021-0400-SR16

Figure 1. Inflation Rates in CALABARZON, All Items

 August 2020 to August 2021 (2012=100)

 

Inflation in the region for August 2021 was measured at 6.0 percent, which is higher compared to its previous month record at 4.6 percent and the highest inflation recorded since November 2018. In addition, this is 4.7 percent index points higher than the recorded inflation rate in the same month of 2020 at 2.7 percent.

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

Compared with their inflation rates in July 2021, all provinces experienced faster growth in August 2021. The province of Laguna which recorded the lowest inflation across provinces in the region, exhibited an acceleration of 0.8 percent index point from its previous month’s inflation rate at 4.0 percent. Cavite also posted acceleration from 3.3 percent in July 2021 to 4.9 percent in August 2021. Batangas and Quezon both recorded an increase of 1.5 percent index points pushing their inflation rates to 7.0 percent and 6.5 percent, respectively. Among the five provinces in the region, Rizal province remained the strongest at 8.0 percent from 6.4 percent inflation in the previous month.

Table 2. Year-on-Year Inflation Rates in CALABARZON, All Items, January 2016 to August 2021 (2012=100)

Compared with the August inflation rates in the past six years, inflation rate in 2021 was the second highest at 6.0 percent, next to the inflation rate in August 2018 with 6.1 percent. Moreover, it was higher by 4.9 percent index points than the lowest recorded inflation rate in 2016 at 1.1 percent.

On a quarterly basis, 3rd Quarter of 2018 had the highest inflation rate at 6.1 percent while 1st quarter of 2016 had the lowest at 0.2 percent. 2nd quarter of 2021 recorded an inflation rate of 5.7 percent, similar to the inflation rate recorded in the previous quarter.

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 deflation was recorded in February 2016. Moreover, across the year 2016, the inflation limited only to less than 2 percent. This scenario equated only to 0.9 percent annual inflation, the lowest so far during the past five years.

 

Figure 2. Year-on-year Inflation Rate in CALABARZON, by Commodity Group:

July to August 2021 (2012=100)

 

Relative to their inflation in July 2021, seven commodity groups in the region exhibited higher inflation rates in August 2021, two commodity groups registered lower inflation rates, and two commodity groups sustained their inflation rates.

The uptrend in the inflation in August 2021 was mainly brought about by the faster annual increase in the heavily-weighted Food and Non-Alcoholic Beverages index at 9.3 percent. This was a 2.8 percent index points increase in the inflation rate recorded in July 2021 at 6.5 percent.  In addition, higher annual increases were recorded in the inflation rate of the following commodities:

  • Clothing and Footwear, 2.0 percent;
  • Housing, Water, Electricity, Gas, and Other Fuels, 3.1 percent;
  • Furnishings, Household Equipment and Routine Maintenance of the House, 2.0 percent;
  • Transport, 6.4 percent; and
  • Restaurant and Miscellaneous Goods and Services, 5.2 percent.

Meanwhile, inflation of Recreation and Culture commodity group remained negative at -0.1 percent in August 2021. The communication commodity group registered no inflation since April 2021. Education commodity group retained its previous month’s inflation rate at 1.1 percent.

On the other hand, lower inflation rates were recorded in the indices of Alcoholic Beverages and Tobacco commodity group at 12.5 percent, and Health commodity group at 4.0 percent in August 2021.

 

Table 3. Monthly Consumer Price Index for All Income Households in the Philippines, by Commodity Group, Area/Region:

July and August 2020-2021 (2012=100)

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 CALABARZON for August 2021 was recorded at 129.0, a 6.0 percent increase over the record set in the same month a year ago at 121.7. In addition, CPI for All Items in the region during this month increased by 1.4 index points compared to the figure recorded in July 2021.

For areas outside NCR (AONCR), price index for all items in CALABARZON for August 2021 at 129.0 was the fourth lowest quoted CPI in the Philippines. CAR had the lowest price index at 127.6. On the other hand, Bicol Region had the highest price index at 135.3 during the reported month, higher by 6.0 index points than the national average at 129.3 price index for all items.

All regions in AONCR, except Zamboanga Peninsula, reported an increase in the CPI compared to the previous month’s record. Davao Region had the highest reported increment of 1.7 index points.

Figure 3. Purchasing Power of Peso, All Items, by Province in CALABARZON:

July and August 2021 (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 August 2021, the PPP in the region was at its second-month constant state at P0.78. This means that the value of P1.00 in 2012 is only worth P0.78 in August this year.

During the month, the PPP in Laguna remains the strongest across provinces at P0.83, retaining its previous month’s record. All other provinces recorded a decrease in PPP at P0.76.

 

CHARITO C. ARMONIA

Regional Director

BFP/LOM/JAS

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