1. Philippines

The country’s inflation for the bottom 30% income households continued to move upward as it accelerated further to 3.6 percent in November 2020. This is the highest inflation recorded for the bottom 30% income households since March 2019.

In the previous month, inflation for the bottom 30% income households was noted at 2.9 percent, and in November 2019, 0.7 percent.

This brings the year-to-date inflation in 2020 for this income group of consumers to 2.8 percent. (Table A and Figure 1)

Largely contributing to the uptrend in the inflation for the bottom 30% income households was the higher annual increase in the index of the heavily-weighted food and non-alcoholic beverages at 2.8 percent.

In addition, the index for housing, water, electricity, gas, and other fuels also registered a higher annual rate of 1.9 percent during the month.

Meanwhile, annual growth rates were slower in the indices of the following commodity groups during the period:

a. Alcoholic beverages and tobacco, 13.5 percent;
b. Clothing and footwear, 2.3 percent;
c. Health, 2.7 percent;
d. Transport, 16.0 percent; and
e. Restaurant and miscellaneous goods and services, 2.9 percent.

Except for recreation and culture, whose annual rate was still recorded at -0.1 percent during the month, the indices of the rest of the commodity groups retained their previous month’s annual mark-ups. (Tables 3 and 4)

The country’s food inflation jumped to 3.0 percent in November 2020 from 1.5 percent in the previous month. In November 2019, its annual rate declined by -1.8 percent. (Table 7)

The index of vegetables posted a double-digit annual uptick of 11.3 percent during the month, from an annual drop of -0.6 percent in the previous month. Moreover, annual increases were higher in the indices of the following food groups in November 2020:

a. Other cereals, flour, cereal preparation, bread, pasta and other bakery products, 2.6 percent;
b. Meat, 5.5 percent;
c. Fish, 4.0 percent; and
d. Oils and fats, 2.9 percent.

On the contrary, annual gains slowed down in the indices of milk, cheese, and eggs at 3.4 percent; fruits, 7.4 percent; and food products, not elsewhere classified, 6.9 percent.

In addition, the index for corn registered an annual decrease of -1.4 percent during the month from a 0.8 percent annual increment in the previous month. Furthermore, negative annual growth rates were still observed in the indices of rice at -0.6 percent; and sugar, jam, honey, chocolate and confectionery at -0.2 percent. (Table 5)

_{Source: Survey of Retail Prices of Commodities for Consumer Price Index, Philippine Statistics Authority}

2. National Capital Region (NCR)

In NCR, inflation for the bottom 30% income households soared to 6.2 percent in November 2020. This is the highest inflation observed for the bottom 30% in NCR since December 2018.

Inflation in the area in the previous month was 3.7 percent while in the same month in 2019, it was at 0.9 percent. (Tables A and 3)

The 9.1 percent annual mark-up in the index of food and non-alcoholic beverages primarily raised the inflation in NCR for the bottom 30 percent income households in November 2020. The inflation for this commodity group is the highest since October 2018.

The double-digit annual increment of 10.1 percent recorded in alcoholic beverages and tobacco in November 2020 also contributed to the higher inflation for the bottom 30% income households in NCR.

On the other hand, annual hikes decelerated in the indices of the following commodity groups:

a. Clothing and footwear, 1.2 percent;
b. Furnishing, household equipment and routine maintenance of the house, 1.4 percent; and
c. Transport, 23.2 percent.

A downward movement was still observed in communication as its annual rate dropped by -0.4 percent during the month, while housing, water, electricity, gas, and other fuels had a zero percent annual rate during the month.

The indices of the rest of the commodity groups—health; recreation and culture; education; and restaurant and miscellaneous goods and services, retained their previous month’s annual growth rates. (Tables 3 and 4)

3. Areas Outside NCR (AONCR)

Similar to the trend at the national level and in NCR, inflation for this particular income group of consumers in AONCR also picked up further to 3.6 percent in November 2020. In the previous month, inflation in these areas was posted at 2.9 percent and in November 2019, 0.7 percent. (Tables A and 3)

Annual increases were higher in the indices of food and non-alcoholic beverages at 2.7 percent; and housing, water, electricity, gas, and other fuels at 2.1 percent.

On the contrary, annual gains were slower in the indices of the following commodity groups during the period:

a. Alcoholic beverages and tobacco, 13.6 percent;
b. Clothing and footwear, 2.3 percent;
c. Health, 2.8 percent;
d. Transport, 15.7 percent; and
e. Restaurant and miscellaneous goods and services, 3.0 percent.

Moreover, the annual rate of recreation and culture index went down further by -0.2 percent during the month. Meanwhile, the indices of other commodity groups—furnishing, household equipment and routine maintenance of the house; communication; and education, retained their previous month’s annual growth rates. (Tables 3 and 4)

Eleven (11) regions in AONCR exhibited higher inflation for the bottom 30% income households in November 2020. The highest inflation among regions outside NCR during the month remained in Region II (Cagayan Valley) at 5.7 percent, while the lowest inflation was still noticed in Region IX (Zamboanga Peninsula) at -0.4 percent. (Table 4)

Note:

CPIs and inflation rates for the bottom 30% income households by province and selected city are posted at the PSA website (http://openstat.psa.gov.ph/).

See more at the Consumer Price Index for Bottom 30% Income Households Main page.