The country’s inflation for the bottom 30% income households rose further to 2.9 percent in April 2020. Inflation for this income group in March 2020 was posted at 2.4 percent and in April 2019, 3.1 percent.
A higher annual increase of 2.3 percent in the heavily-weighted food and non-alcoholic beverages index primarily pushed up the inflation during the month. Also, contributing to the uptrend in the inflation were the higher annual growth rates recorded in the indices of health at 3.6 percent; communication, 0.3 percent; and restaurant and miscellaneous goods and services, 2.7 percent.
On the other hand, annual mark-ups were slower in the indices of the following commodity groups in April 2020:
- Alcoholic beverages and tobacco, 20.5 percent;
- Clothing and footwear, 2.6 percent;
- Housing, water, electricity, gas, and other fuels, 1.8 percent; and
- Recreation and culture, 3.3 percent.
In addition, the transport index exhibited an annual drop of 1.9 percent during the month, from an annual increment of 0.9 percent in the previous month. The indices of the other commodity groups such as furnishing, household equipment and routine maintenance of the house, and education retained their previous month’s annual growth rates. (Tables 3 and 4)
Inflation for food at the national level picked up by 2.2 percent in April 2020. In the previous month, its annual rate was observed at 1.0 percent, and in the same month in 2019, 2.4 percent. (Table 7)
Specifically, annual upticks were higher in the indices of the following food groups during the month:
- Other cereals, flour, cereal preparation, bread, pasta and other bakery products, 2.7 percent;
- Milk, cheese and eggs, 4.3 percent;
- Oils and fats, 1.8 percent;
- Fruits, 10.5 percent;
- Vegetables, 8.3 percent; and
- Food products, not elsewhere classified, 13.1 percent.
On the contrary, the fish index posted a slower annual mark-up of 9.5 percent during the period, while the meat index retained its previous month’s annual rate of 1.8 percent. Annual declines were still registered in the indices of other food groups such as rice; corn; and sugar, jam, honey, chocolate and confectionery. (Table 5)
|Year-on-Year Inflation Rates of the CPI for the Bottom 30%
Income Households for All Items in the Philippines
January 2016 – April 2020
National Capital Region (NCR)
Inflation of consumer items for this particular income group in NCR, however, eased to 1.7 percent in April 2020. The annual rate in the area in March 2020 was 1.9 percent, and in April 2019, 2.9 percent.
The slowdown in the inflation was attributed to the annual decreases still observed in the indices of housing, water, electricity, gas, and other fuels at 2.2 percent; transport, 2.3 percent; and communication, 0.3 percent. Moreover, slower annual growth rates were noted in the indices of food and non-alcoholic beverages at 2.9 percent; health, 2.1 percent; and recreation and culture, 0.9 percent.
On the other hand, the index of alcoholic beverages and tobacco had a higher annual increment during the month at 19.7 percent. Similarly, the annual rate of restaurant and miscellaneous goods and services went up by 0.7 percent, from a zero percent annual growth in the previous month. The indices of other commodity groups retained their previous month’s annual growth rates. (Tables 3 and 4)
Areas Outside NCR (AONCR)
Following the same trend as that of the national level, inflation for the bottom 30% income households in AONCR climbed by 2.9 percent in April 2020. Inflation in the area in March 2020 was registered at 2.4 percent and in April 2019, 3.1 percent.
Uptrend in the inflation in AONCR were driven by the higher annual upticks observed in the indices of food and non-alcoholic beverages at 2.3 percent; health, 3.6 percent; communication, 0.4 percent; and restaurant and miscellaneous goods and services, 2.9 percent.
Meanwhile, annual increments decelerated in the indices of the following commodity groups during the period:
- Alcoholic beverages and tobacco, 20.5 percent;
- Clothing and footwear; 2.6 percent;
- Housing, water, electricity, gas, and other fuels, 2.0 percent;
- Furnishing, household equipment and routine maintenance of the house, 1.6 percent; and
- Recreation and culture, 3.4 percent.
The annual rate of transport index dropped by 1.9 percent during the month, while the education index retained its previous month’s annual rate of 5.1 percent. (Tables 3 and 4)
Inflation in all the regions outside NCR were higher in April 2020, except in Region V (Bicol) which retained its previous month’s inflation of 2.6 percent. Among the regions in AONCR, Region VII (Central Visayas) still recorded the highest inflation during the month at 4.4 percent, while Region X (Northern Mindanao) remained to register the lowest inflation at 0.6 percent. (Table 4)
1. CPIs and inflation rates for the bottom 30% income households by province and selected cities are posted at the PSA website (http://openstat.psa.gov.ph/).
2. The PSA was able to collect prices from the sample markets/outlets even during the Enhanced Community Quarantine (ECQ) in NCR and other regions/provinces. Normally, face-to-face interview or visit to sample markets/outlets is done to collect prices. However, when face-to face interview was not possible in some areas during the ECQ, alternative approaches such as phone call/text to sellers of the sample outlets, email to sample outlets, and other alternative approaches/strategies were done to collect prices.
See more at the Consumer Price Index for Bottom 30% Income Households Main page.