CALABARZON’s inflation rate expands to 5.6 percent in January 2021 | Philippine Statistics Authority CALABARZON

Release-Date

Thursday, February 11, 2021

Reference-Number

2021-0400-SR02

Figure 1. Inflation Rates in CALABARZON, All Items (2012=100) (Y Axis Title – In Percent, remove Axis Title – Month/Year) Inflation in the region for January 2021 was measured at 5.6 percent, higher by 1.2 percent index points compared to its previous month record. In addition, this is 2.1 percent index points higher than the recorded inflation rate in the same month of 2020 at 3.5 percent. Furthermore, this month’s inflation marked the highest inflation rate since December 2018. Table 1. Year-on-Year Inflation Rate by Province, All Items (2012=100) Area Jan 2021 Dec 2020 Jan 2020 CALABARZON 5.6 4.4 3.5 Batangas 4.2 3.5 3.5 Cavite 5.4 4.6 4.7 Laguna 5.1 3.8 2.5 Quezon 6.3 4.8 3.0 Rizal 7.5 6.0 3.6 Compared with their inflation rate in December 2020, all provinces in CALABARZON experienced faster growth in January 2021. The province of Batangas which recorded the lowest inflation across provinces in the region, exhibited an acceleration of 0.7 percent index point from its previous month’s inflation rate at 3.5 percent. Inflation Rate in Cavite also displayed an increase of 0.7 percent index point from 4.6 percent in December 2020. Moreover, Rizal province recorded the highest inflation rate at 7.5 percent, higher by 1.5 percent index points compared to its previous month record at 6.0 percent. Table 2. Year-on-Year Inflation Rates in CALABARZON, All Items, January 2016 to January 2021 (2012=100) Month Year 2016 2017 2018 2019 2020 2021 January 0.6 2.2 2.9 4.3 3.5 5.6 February -0.1 3.2 3.5 3.8 2.6 March 0.0 3.7 3.6 3.3 2.3 1st Quarter 0.2 3.0 3.3 3.8 2.8 April 0.0 3.6 3.9 3.1 1.9 May 0.2 3.5 4.0 3.2 1.8 June 1.0 2.4 4.7 2.5 2.4 2nd Quarter 0.4 3.2 4.2 2.9 2.0 July 1.2 2.2 5.9 2.2 2.9 August 1.1 2.5 6.1 1.7 2.7 September 1.6 3.1 6.2 1.0 2.6 3rd Quarter 1.3 2.6 6.1 1.7 2.7 October 1.7 3.2 6.1 1.4 2.6 November 1.9 3.0 5.8 1.4 4.1 December 1.8 2.9 4.8 3.1 4.4 4th Quarter 1.8 3.0 5.6 2.0 3.7 Annual Average 0.9 2.9 4.8 2.6 2.8 Compared with the January inflation rates in the past five years, inflation rate in 2021 was the highest at 5.6 percent. Moreover, it was higher by 5.0 percent index points than the lowest recorded inflation rate in 2016 at 0.6 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. 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. Inflation Rate in CALABARZON, by Commodity Group: December 2020 and January 2021 (2012=100) Relative to their inflation in December 2020, five commodity groups in the region exhibited higher inflation rates in January 2021, four commodity groups registered lower inflation rates, and two commodity groups sustained their inflation rates. The uptrend in the inflation in January 2021 was mainly brought about by the higher annual increment of the heavily weighted Food and Non-Alcoholic Beverages index at 9.86 percent. In addition, faster annual increases were recorded in the inflation rate of the following commodities: · Housing, Water, Electricity, Gas, and Other Fuels, 1.30 percent; · Furnishings, Household Equipment and Routine Maintenance of the House, 2.27 percent; · Health, 2.68 percent; and · Restaurant and Miscellaneous Goods and Services, 3.94 percent. On the other hand, lower inflation were recorded in the indices of Alcoholic Beverages and Tobacco commodity group at 11.62 percent and Clothing and Footwear commodity group at 1.12 percent in January 2021. Education commodity group retained its previous month’s inflation rate at 1.09 percent while the Communication commodity group registered no growth in January 2021. Table 4. Monthly Consumer Price Index for All Income Households in the Philippines, by Commodity Group, Area/Region: December 2019-2020 and January 2020-2021 (2012=100) A R E A / R E G I O N All Items JANUARY DECEMBER 2021 2020 2020 2019 Philippines 127.8 122.6 126.2 121.9 NCR- National Capital Region 125.0 119.9 123.6 119.8 Areas Outside NCR 128.6 123.4 127.0 122.5 Regions: CAR - Cordillera Administrative Region 125.3 120.5 124.3 120.4 I - Ilocos Region 125.7 121.2 125.3 120.9 II - Cagayan Valley 133.5 123.6 130.9 122.8 III - Central Luzon 128.3 121.7 126.1 120.7 IV-A - CALABARZON 127.7 120.9 125.7 120.4 MIMAROPA Region 131.4 125.2 129.6 124.1 V - Bicol Region 134.3 125.0 132.1 123.9 VI - Western Visayas 129.1 124.4 127.8 123.2 VII - Central Visayas 126.8 126.1 126.3 125.2 VIII - Eastern Visayas 130.0 127.2 128.8 125.8 IX - Zamboanga Peninsula 128.6 128.4 127.3 126.0 X - Northern Mindanao 129.9 126.6 129.2 125.7 XI - Davao Region 125.4 123.1 123.9 122.3 XII - SOCCSKSARGEN 131.4 126.3 129.6 125.1 XIII - Caraga 125.9 122.1 123.9 121.2 BARMM - Bangsamoro Autonomous Region in Muslim Mindanao 132.4 128.5 131.5 127.9 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 January 2021 was recorded at 127.7, a 5.6 percent increase over the record set in the same month a year ago at 120.9. In the same manner, CPI for All Items in the region during this month is higher by 1.6 percent compared to the figure recorded in December 2020. For areas outside NCR, price index for all items in CALABARZON for January 2021 at 127.7 was the sixth lowest quoted CPI in the Philippines. CAR had the lowest price index at 125.3. On the other hand, Bicol Region had the highest price index at 134.3 during the reported month, higher by 6.5 index points with the national average of 127.8 price index for all items. All 17 regions reported an increase in the CPI compared to the previous month’s record, Cagayan Valley with the highest reported increment of 2.6 index points. Figure 2. Purchasing Power of Peso, All Items, by Province in CALABARZON: December 2020 to January 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 January 2021, the PPP in the region recorded a lower PPP at P0.78 after a two- month constant state at P0.80. This means that the value of P1.00 in 2012 is only worth P0.78 in January this year. During the month, all provinces in the region reported decrease in PPP. The PPP in Laguna remains the strongest across provinces at P0.83, followed by Batangas, Cavite and Rizal at P0.77, and Quezon at P0.76. (SGD.) CHARITO C. ARMONIA Regional Director BFP/LOM/JAS

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