Special Release: CALABARZON’s inflation went up to 2.4 percent in June 2020, after four consecutive months of deceleration | Philippine Statistics Authority CALABARZON

Release-Date

Friday, July 31, 2020

Reference-Number

2020-0400-SR08

Figure 1. Inflation Rate on All Items in CALABARZON (2012=100) Inflation in the region for June 2020 was measured at 2.4 percent, higher by 0.6 percent index point than the recorded inflation of the previous month. In contrast, this is 0.1 percent index point lower than the recorded inflation rate in the same month of 2019 at 2.5 percent. In addition, this month’s inflation is 1.4 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 Jun 2020 May 2020 Jun 2019 CALABARZON 2.4 1.8 2.5 Batangas 1.7 1.2 3.1 Cavite 2.8 2.6 2.7 Laguna 1.4 0.5 2.1 Quezon 2.3 2.2 1.5 Rizal 4.2 2.6 2.8 The growth in inflation rate of the region during the month can be traced from all provinces in CALABARZON that exhibited acceleration compared with the record in May 2020. The province of Laguna which recorded the lowest inflation across provinces in the region, exhibited an acceleration of 0.9 percent index point from its previous month’s inflation rate at 0.5 percent. Inflation rate in the Province of Rizal displayed the highest increase with 1.6 percent index points. From its inflation rate of 1.2 percent in May 2020, Batangas province also accelerated to 1.7 percent in June 2020. Cavite and Quezon inflation rates slightly increased with 0.2 percent index point and 0.1 percent index point, respectively. Table 2. Year-on-Year Inflation Rates in CALABARZON, All Items, January 2015 to June 2020 (2012=100) Month Year 2015 2016 2017 2018 2019 2020 January 1.2 0.6 2.2 2.9 4.3 3.5 February 1.2 -0.1 3.2 3.5 3.8 2.6 March 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 1.8 June 0.2 1.0 2.4 4.7 2.5 2.4 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. June inflation rate was of record high in 2018 at 4.7 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: May to June 2020 (2012=100) Relative to their inflation in May 2020, six commodity groups in the region exhibited lower inflation rates in June 2020, four commodity groups registered higher inflation rate, and Communication commodity group sustained its inflation rate. The uptrend in the inflation in June 2020 was mainly brought about by the higher annual increase in the Food and Non-Alcoholic Beverages at 3.68 percent; Alcoholic Beverages and Tobacco at 16.28 percent; and Transport at 0.58 percent. Housing, Water, Electricity, Gas, and Other Fuels commodity group registered a deflation of 0.65 percent in June 2020 from its deflation of 1.30 percent in May 2020. On the other hand, the Education commodity group decelerated by 1.16 percentage points pushing its inflation rate to 2.41 percent during the month in review. Clothing and Footwear, Furnishings, Household Equipment and Routine Maintenance of the House, and Health commodity groups also exhibited slower growth with 0.09 percentage point decrement. Likewise, Recreation and Culture and Restaurant and Miscellaneous Goods and Services commodity groups experienced slow down with 0.17 percentage point and 0.08 percentage point, respectively. Meanwhile, Communication commodity group retained its previous month’s inflation rate at 0.50 percent. Table 4. Monthly Consumer Price Index for All Income Households in the Philippines, by Commodity Group, Area/Region: May and June 2019-2020 (2012=100) A R E A / R E G I O N All Items JUNE MAY 2020 2019 2020 2019 Philippines 122.9 119.9 122.3 119.8 NCR- National Capital Region 120.2 117.9 119.4 117.8 Areas Outside NCR 123.7 120.5 123.1 120.4 Regions: CAR - Cordillera Administrative Region 121.0 117.8 121.0 117.9 I - Ilocos Region 121.7 118.7 121.3 118.7 II - Cagayan Valley 124.4 120.8 123.4 121.0 III - Central Luzon 121.5 118.3 120.9 118.1 IV-A - CALABARZON 120.4 117.6 119.9 117.8 MIMAROPA Region 125.6 121.6 124.7 121.0 V - Bicol Region 126.1 120.9 124.4 120.9 VI - Western Visayas 125.3 121.4 124.5 121.1 VII - Central Visayas 126.8 123.5 126.1 123.4 VIII - Eastern Visayas 126.8 125.4 127.1 124.9 IX - Zamboanga Peninsula 127.3 123.7 127.3 123.7 X - Northern Mindanao 127.1 125.2 126.8 125.6 XI - Davao Region 123.4 121.1 123.2 120.9 XII - SOCCSKSARGEN 128.1 124.2 128.1 123.6 XIII - Caraga 122.9 119.4 122.7 119.6 BARMM - Bangsamoro Autonomous Region in Muslim Mindanao 130.8 127.5 130.5 127.0 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 June 2020 was recorded at 120.4, a 2.4 percent increase over the record set in the same month a year ago at 117.6. In the same manner, CPI for All Items in the region during this month is higher by 0.4 percent compared to the figure recorded in May 2020. For areas outside NCR, price index for all items in CALABARZON for June 2020 at 120.4 was the lowest quoted CPI in the Philippines. BARMM remains to have the highest price index at 130.8 during the reported month, higher by 7.9 index points with the national average of 122.9 price index for all items. Thirteen regions reported an increase in the CPI compared to the previous month’s record, Bicol Region and Cagayan Valley with the highest reported increment of 1.7 index points and 1.0 index point, respectively. SOCCSKSARGEN, CAR and Zamboanga Peninsula sustained their previous month’s CPI. Eastern Visayas recorded a decline by 0.3 index point in CPI compared to previous month’s record. Figure 2. Purchasing Power of Peso, All Items, by Province in CALABARZON: May-June 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 June 2020, the PPP in the region was at its seventh-month constant state at P0.83. This means that the value of P1.00 in 2012 is only worth P0.83 in June this year. During the month, two provinces in the region had sustained their PPP from the previous month, Cavite at P0.82 and Quezon at P0.81. The PPP in Laguna remains the strongest across provinces at P0.87, followed by Rizal and Cavite at P0.82, and Batangas and Quezon at P0.81. (SGD) CHARITO C. ARMONIA Regional Director

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