CALABARZON’s Inflation Rate slowed down to 5.8 percent in September 2021 | Philippine Statistics Authority CALABARZON

Release-Date

Sunday, October 31, 2021

Reference-Number

2021-0400-SR17

Figure 1. Inflation Rates in CALABARZON, All Items: September 2020 to September 2021 (2012=100) Inflation in the region for September 2021 was measured at 5.8 percent, which is lower compared to its previous month record at 6.0 percent. In contrast, this is 3.2 percent index points higher than the recorded inflation rate in the same month of 2020 at 2.6 percent. Despite the deceleration, inflation rate in September 2021 is still way above the inflation rate of the whole year 2020 at 2.8. Table 1. Year-on-Year Inflation Rate by Province, All Items (2012=100) Compared with their inflation rates in August 2021, four provinces experienced slower growth in September 2021. The province of Rizal which recorded the highest inflation across provinces in the region, exhibited a deceleration of 0.9 percent index point from its previous month’s inflation rate at 8.0 percent. Cavite also posted deceleration from 4.9 percent in August 2021 to 4.6 percent in September 2021. Batangas and Quezon both recorded a decrease of 0.4 percent index points pushing their inflation rates to 6.6 percent and 6.1 percent, respectively. Among the five provinces in the region, only Laguna recorded an acceleration of 0.7 percent index point in September 2021, with 5.5 percent inflation. Table 2. Year-on-Year Inflation Rates in CALABARZON, All Items, January 2016 to September 2021 (2012=100) Compared with the September inflation rates in the past six years, inflation rate in 2021 was the second highest at 5.8 percent, next to the inflation rate in September 2018 with 6.2 percent. Moreover, it was higher by 4.2 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. 3rd quarter of 2021 recorded an inflation rate of 5.5 percent, lower than the recorded inflation rates in 1st and 2nd quarter of this year. 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, from 2016 to 2020, the 2nd semester of 2018 had the higher monthly inflation rates. Since 2016, a deflation was recorded only in February 2016. Moreover, in the year 2016, the monthly inflation rates were 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. Inflation Rate in CALABARZON, by Commodity Group: August to September 2021 (2012=100) Relative to their inflation in August 2021, seven commodity groups in the region exhibited higher inflation rates in September 2021, three commodity groups registered lower inflation rates, and only one commodity group which is Communication sustained its inflation rate. The downtrend in the inflation in September 2021 for all items was mainly brought about by the slower annual increase in the heavily weighted Food and Non-Alcoholic Beverages index at 8.4 percent. It also had a 0.9 percent index points decrease in the inflation rate recorded in August 2021 at 9.3 percent. In addition, lower annual increases were recorded in the inflation rate of the following commodities: Furnishings, Household Equipment and Routine Maintenance of the House, 1.9 percent; and Restaurant and Miscellaneous Goods and Services, 5.1 percent. Meanwhile, inflation rate of Recreation and Culture commodity group ended its negative inflation and recorded a positive growth at 1.1 percent in September 2021. This is a 1.19 percent index point increase over the -0.1 percent inflation recorded in the previous month. Likewise, Alcoholic Beverages and Tobacco commodity group registered a higher inflation rate of 13.5 percent. The following commodities also recorded higher inflation rates compared to the previous month: Clothing and Footwear, 2.1 percent; Housing, Water, Electricity, Gas, and Other Fuels; 3.5 percent; Health, 4.1 percent; Transport, 6.6 percent; and Education, 1.6 percent. The communication commodity group registered zero inflation since April 2021. Table 3. Monthly Consumer Price Index for All Income Households in the Philippines, by Commodity Group, Area/Region: August and September 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 September 2021 was recorded at 128.7, a 5.8 percent increase over the record set in the same month a year ago at 121.7. In contrast, CPI for All Items in the region during the month decreased by 0.3 index points compared to the figure recorded in August 2021. For areas outside NCR (AONCR), price index for all items in CALABARZON for September 2021 at 128.7 was the fourth lowest quoted CPI in the Philippines. Caraga had the lowest price index at 127.4. On the other hand, Bicol Region had the highest price index at 135.6 during the reported month, higher by 6.3 index points than the national average at 129.3 price index for all items. Eight regions in AONCR reported an increase in the CPI compared to the previous month’s record. CAR had the highest reported increment of 0.9 index points. Figure 3. Purchasing Power of Peso, All Items, by Province in CALABARZON: August and September 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 September 2021, the PPP in the region was at its third-month constant state at P0.78. This means that the value of P1.00 in 2012 is only worth P0.78 in September this year. During the month, only Laguna recorded a change in PPP at P0.82. Despite the decrease, Laguna remains the strongest across provinces, while all other provinces retained their previous month’s record of P0.76. (SGD.) CHARITO C. ARMONIA Regional Director BFP/LOM/JAS

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