CALABARZON’s Inflation Rate eased to 4.6 percent in July 2021 | Philippine Statistics Authority CALABARZON

Release-Date

Monday, August 9, 2021

Reference-Number

2021-0400-SR13

Figure 1. Inflation Rates in CALABARZON, All Items July 2020 to July 2021 (2012=100) Inflation in the region for July 2021 was measured at 4.6 percent, which is lower compared to its previous month record of 5.4 percent. In contrast, this is 1.7 percent index points higher than the recorded inflation rate in the same month of 2020 at 2.9 percent. Despite the deceleration, inflation rate in July 2021 is still way above the inflation rate of the whole year 2020. Table 1. Year-on-Year Inflation Rate by Province, All Items (2012=100) Compared with their inflation rates in June 2021, three provinces experienced slower growth in July 2021. The province of Cavite which recorded the lowest inflation across provinces in the region, exhibited a deceleration of 2.7 percent index point from its previous month’s inflation rate at 6.0 percent. Laguna also posted deceleration from 5.0 percent in June 2021 to 4.0 percent in July 2021. Quezon recorded a slight deceleration of 0.3 percent index point, resulting to a 5.0 percent inflation. In contrast, Batangas and Rizal increased by 0.9 percent index point and 0.4 percent index point pushing their inflation rates to 5.5 percent and 6.4 percent, respectively. Table 2. Year-on-Year Inflation Rates in CALABARZON, All Items, January 2016 to July 2021 (2012=100) Compared with the July inflation rates in the past six years, inflation rate in 2021 was the second highest at 4.6 percent, next to the inflation rate in July 2018 with 5.9 percent. Moreover, it was higher by 3.4 percent index points than the lowest recorded inflation rate in 2016 at 1.2 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: June to July 2021 (2012=100) Relative to their inflation in June 2021, six commodity groups in the region exhibited lower inflation rates in July 2021, two commodity groups registered higher inflation rates, and three commodity groups sustained their inflation rates. Lower annual inflation rate of the Transport commodity group was recorded at 5.0 percent. This was a 6.36 percent index points decrease in the inflation rate recorded in June 2021 at 11.3 percent. In addition, lower annual increases were recorded in the inflation rate of the following commodities: Food and Non-Alcoholic Beverages, 6.5 percent; Alcoholic Beverages and Tobacco, 12.7 percent; Housing, Water, Electricity, Gas, and Other Fuels, 2.3 percent; Furnishings, Household Equipment and Routine Maintenance of the House, 1.9 percent; and Restaurant and Miscellaneous Goods and Services, 4.6 percent. Meanwhile, inflation of Recreation and Culture commodity group remained negative at -0.8 percent in July 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, higher inflation rates were recorded in the indices of Clothing and Footwear commodity group at 1.5 percent, and Health commodity group at 4.1 percent in July 2021. Table 3. Monthly Consumer Price Index for All Income Households in the Philippines, by Commodity Group, Area/Region: June and July 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 July 2021 was recorded at 127.6, a 4.6 percent increase over the record set in the same month a year ago at 122.0. In addition, CPI for All Items in the region during this month recorded a 0.7 percent increase compared to the figure recorded in June 2021. For areas outside NCR, price index for all items in CALABARZON for July 2021 at 127.6 was the third lowest quoted CPI in the Philippines together with Central Luzon and Caraga. CAR had the lowest price index at 126.1. On the other hand, SOCCSKSARGEN had the highest price index at 134.5 during the reported month, higher by 6.0 index points with the national average of 128.5 price index for all items. Fourteen regions reported an increase in the CPI compared to the previous month’s record, CAR and Ilocos Region with the highest reported increment of 0.8 index point. Figure 3. Purchasing Power of Peso, All Items, by Province in CALABARZON: June and July 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 July 2021, the PPP in the region ended its four-month constant state at P0.79 and decreased to P0.78. This means that the value of P1.00 in 2012 is only worth P0.78 in July this year. During the month, Batangas and Rizal province reported a decrease in PPP, that is from P0.78 in June 2021 to P0.77 this month for both provinces. The PPP in Laguna remains the strongest across provinces at P0.83, all other provinces recorded a P0.77 PPP. (SGD.) CHARITO C. ARMONIA Regional Director BFP/LOM/JAS

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