Inflation for the bottom 30% income households at the country level picked up by 3.0 percent in June 2020. This was the highest inflation for this income group of consumers since July 2019. In the previous month, inflation for this group was posted at 2.9 percent and in June 2019, it was observed at 3.1 percent. (Table A and Figure 1)
The transport index, specifically, tricycle fare index, which registered an annual increase of 4.8 percent during the month, from its annual rate of -2.3 percent in May 2020, pushed up the June 2020 inflation for the bottom 30% income households. The higher annual increments in the indices of alcoholic beverages and tobacco at 21.2 percent; and in communication at 0.2 percent also contributed to the upward trend of the June 2020 inflation.
Except for restaurant and miscellaneous goods and services, which retained its May 2020 annnual rate of 2.8 percent, the rest of the commodity groups exhibited slower annual growth rates during the period. (Tables 3 and 4)
At the national level, inflation for food index eased to 2.1 percent in June 2020, from 2.2 percent in the previous month. In June of the previous year, food inflation settled to 1.9 percent. (Table 7)
Annual declines were still observed in the indices of rice at 2.1 percent; and in sugar, jam, honey, chocolate and confectionery at 0.6 percent. In addition, annual gains decelerated in the indices of the following food groups during the month:
a. Other cereals, flour, cereal preparation, bread, pasta and other bakery products, 2.8 percent;
b. Fish, 6.6 percent;
c. Fruits, 10.6 percent;
d. Vegetables, 3.5 percent; and
e. Food products, not elsewhere classified, 8.3 percent.
Meanwhile, the annual rate of corn index rose to 0.2 percent in June 2020, after posting a 0.6 percent annual drop in the previous month. The indices of the rest of the food groups such as meat; milk, cheese, and eggs, and oils and fats, registered higher annual increases during the period. (Table 5)
|Table B. Year-on-Year Inflation Rates of the CPI for the
Bottom 30% Income Households in the Philippines, All Items
January 2016 – June 2020
Source: Retail Price Survey for the Generation of CPI, Philippine Statistics Authority
2. National Capital Region (NCR)
Inflation of consumer items for this particular income group in NCR picked up further to 2.7 percent in June 2020. In the previous month, inflation in the area was 1.9 percent, and in June 2019, 2.7 percent.
The acceleration in the inflation in NCR was primarily due to the double-digit annual increment recorded in the transport index at 19.8 percent in June 2020, from 6.0 percent in the previous month. Contributing also to the uptrend was the higher annual mark-up in the index of the heavily-weighted food and non-alcoholic beverages at 2.4 percent. Furthermore, faster annual increases in the indices of alcoholic beverages and tobacco at 19.8 percent; and restaurant and miscellaneous goods and services at 1.3 percent pushed up the inflation for the bottom 30 percent income households in the area.
On the contrary, lower annual upticks were observed in the indices of the following commodity groups during the month:
a. Clothing and footwear, 1.2 percent;
b. Furnishing, household equipment and routine maintenance of the house, 1.9 percent;
c. Health, 2.0 percent;
d. Recreation and culture; and education, both at 0.7 percent.
In addition, the indices of housing, water, electricity, gas, and other fuels; and communication continued to register negative annual growth rates during the period. (Tables 3 and 4)
3. Areas Outside NCR (AONCR)
Inflation for the bottom 30% income households in AONCR likewise went up by 3.0 percent in June 2020, from 2.9 percent in May 2020. Inflation in June 2019 was registered at 3.1 percent.
The transport index, which gained by 4.2 percent in June 2020, from -2.6 percent in May 2020, pushed up the inflation in the area during the period. The higher annual increments in the indices of alcoholic beverages and tobacco at 21.3 percent; communication, 0.3 percent; and restaurant and miscellaneous goods and services, 3.0 percent also pushed up the June 2020 inflation.
For the rest of the commodity groups, slower annual mark-ups were noted. (Tables 3 and 4)
Among regions in AONCR, eight exhibited Inflation for the bottom 30% income households in June 2020 that were higher than their respective annual rates in the previous month. The highest inflation among the regions in AONCR during the month was posted in Region VII (Central Visayas) at 4.4 percent, while the lowest was seen in Region IX (Zamboanga Peninsula) at 1.2 percent. (Table 4)
CPIs and inflation rates for the bottom 30% income households by province and selected city are posted on the PSA website (http://openstat.psa.gov.ph/).
See more at the Consumer Price Index for Bottom 30% Income Households Main page.