Thursday, September 7, 2023
Summary Inflation Report
Consumer Price Index
The Batangas headline inflation or overall inflation increased to 6.1 percent in August 2023 from 5.8 percent in July 2023. This brings to an average inflation from January to August 2023 to 7.9 percent. In August 2022, inflation rate was higher at 7.7 percent.
The uptrend of the overall inflation in August 2023 was primarily influence by the higher year-on-year increase in the heavily weighted food and non-alcoholic beverages at 8.0 during the month from 6.7 percent in the previous month. The annual growth of transport at 2.1 percent during the month, from an annual decline of -0.1 percent in July 2023, also contributed to the uptrend. In addition, restaurants and accommodation services index recorded an annual increase of 15.8 percent during the month from 14.1 percent in July 2023.
In contrast, four commodity groups showed lower inflation rates during the month:
a. Clothing and Footwear 6.5 percent from 6.6 percent
b. Housing, water, electricity, gas and other fuels, 1.5 percent from 4.2 percent
c. Furnishings, household equipment and routine household maintenance, 5.4 percent from 6.0 percent
d. Health, 2.8 percent from 3.3 percent
The indices of the rest of the commodity groups retained their respective previous month’s annual increases, while the financial services remained at zero Growth during the month.
Meanwhile, the indices of information and communication at 0.4 percent, education services at 2.6 percent and personal care, and miscellaneous goods and services at 3.5 percent and financial services remained at their previous month’s annual rates.
The top three commodity groups contributing to the August 2023 overall inflation were the following:
a. Food and non-alcoholic beverages – 42.7 percent share or 2.6 percentage points
b. Restaurants and accommodation services – 31.9 percent share or 1.9 percentage points
c. Housing, water, electricity, gas and other fuels- 5.6 percent share or 0.3 percentage points
Food inflation at the province rose to 8.1 percent in August 2023 from 6.6 percent in July 2023. In August 2022, food inflation was higher at 7.6 percent.
The acceleration of food inflation in August 2023 was mainly brought about by the higher year-on-year growth rate observed in vegetables, tubers, plantains, cooking bananas and pulses at 15.8 percent from 2.0 percent in July 2023. This was followed by fish and other seafood with an inflation rate of 14.5 percent during the month from 11.4 percent in July 2023. In addition, faster annual increments were noted in meat and other parts of slaughtered land animals at 3.3 percent in August 2023 from 2.6 percent in the previous month, fruits and nuts with -1.1 percent during the month from -4.7 percent in July 2023, ready-made food and other products with 7.0 percent from 4.9 percent and corn with 25.2 percent during the month from 23.5 percent in the previous month.
Meanwhile, compared with their previous months inflation rates, lower annual growth rates were observed in the indices of the following food groups during the month:
a. Cereals, 8.2 percent from 8.5 percent
b. Rice, 8.0 percent from 8.3 percent
c. Flour, bread and other bakery products, pasta products, and other cereals –6.6 percent from 7.1 percent
d. Milk, other dairy products and eggs, 14.3 percent from 15.8 percent
e. Oils and fats, -16.9 percent from -15.7 percent
f. Sugar, confectionery and desserts, 12.4 percent from 20.4 percent
Food shared 38.8 percent or 2.4 percentage points to the overall inflation in August 2023. Food groups with the highest contribution to food inflation during the month were the following:
a. Cereals and cereal products with 32.1 percent share
b. Fish and other seafood with 25.3 percent share
c. Milk and other dairy products and eggs with 14.7 percent share
d. Vegetables, tubers, plantains, cooking bananas and pulses with 13.5 percent share
e. Meat and other parts of slaughtered land animals with 8.9 percent share