Summary Inflation Report Consumer Price Index for the Bottom 30% Income Households (2012=100) : December 2021

Reference Number: 2022-005
Release Date: 05 January 2022

 

1. Philippines

Bottom 30%

Inflation for the bottom 30% income households at the national level slowed down further to 3.3 percent in December 2021, from 4.2 percent in November 2021. It was registered at 4.3 percent in December 2020.

The Philippines’ annual average inflation for this income group of consumers for the year 2021 went up to 4.8 percent, from 2.9 percent in 2020.  (Tables A and B, and Figure 1)

The downtrend in the inflation for December 2021 was mainly due to the slower annual increase in the index of the heavily-weighted food and non-alcoholic beverages at 3.1 percent, from 4.2 percent in the previous month.

Moreover, lower annual increments were observed in the indices of the following commodity groups during the month:

          a. Alcoholic beverages and tobacco, 6.2 percent;
          b. Clothing and footwear, 2.3 percent;
          c. Health, 2.8 percent;
          d. Transport, 2.3 percent;
          e. Communication, 0.3 percent;
          f.  Recreation and culture, 1.6 percent; and
          g. Restaurant and miscellaneous goods and services, 3.5 percent.

On the contrary, annual upticks were higher in the indices of housing, water, electricity, gas, and other fuels at 4.2 percent; and furnishing, household equipment and routine maintenance of the house at 2.0 percent.

The index of education retained its previous month’s annual growth rate of 1.0 percent. (Tables 3 and 4)

Inflation for food for the bottom 30% income households at the country level eased further to 3.1 percent in December 2021, from 4.2 percent in November 2021. In December 2020, inflation for food was recorded at 3.7 percent. (Table 7)

The index of vegetables posted an annual drop of -6.6 percent during the month, from an annual increase of 1.7 percent in the previous month.

Moreover, annual hikes slowed down in the indices of the following food groups in December 2021:

          a. Rice, 0.6 percent;
          b. Meat, 13.0 percent;
          c. Fish, 7.4 percent;
          d. Milk, cheese and eggs, 1.5 percent; and
          e. Fruits, 3.4 percent.

On the other hand, annual increments were higher in the indices of corn at 12.9 percent; other cereals, flour, cereal preparation, bread, pasta and other bakery products, 1.9 percent; and sugar, jam, honey, chocolate and confectionery at 2.7 percent.

In addition, annual growth rate of food products not elsewhere classified index inched up to 0.2 percent during the month, from an annual decline of -0.1 percent in the previous month.

The index of oils and fats, however, retained its previous month’s annual rate of 6.6 percent. (Table 5)

By commodity group, the following posted higher annual average inflation in 2021 relative to their annual average growth rates in 2020:

          a. Food and non-alcoholic beverages, 4.5 percent;
          b. Clothing and footwear, 2.6 percent;
          c. Housing, water, electricity, gas, and other fuels, 3.0 percent;
          d. Furnishing, household equipment and routine maintenance of the house, 1.8 percent;
          e. Transport, 12.5 percent; and
          f.  Restaurant and miscellaneous goods and services, 4.0 percent.

Meanwhile, slower annual average inflation rates were observed in the following commodity groups in 2021:

          a. Alcoholic beverages and tobacco, 11.1 percent;
          b. Health, 2.8 percent;
          c. Communication, 0.3 percent;
          d. Recreation and culture, 0.6 percent; and
          e. Education, 1.4 percent. (Tables 3 and 4a)

 

Table B. Year-on-Year Inflation Rates of the CPI for the
Bottom 30% Income Households in the Philippines, All Items
January 2017 – December 2021
(2012=100)

Month

Year

2017 2018 2019 2020 2021
January 2.0 3.6 5.2 2.3 4.9
February 2.2 4.4 4.3 2.1 5.5
March 2.2 5.0 3.4 2.4 5.5
April 2.4 5.2 3.1 2.9 4.9
May 2.1 5.4 3.2 2.9 4.5
June 2.1 5.4 3.1 3.0 4.3
July 1.9 6.2 2.5 2.9 4.4
August 2.3 6.9 1.7 2.7 5.3
September 2.5 8.0 0.2 2.8 5.0
October 2.7 8.1 -0.1 2.9 4.8
November 2.6 7.3 0.7 3.6 4.2
December 2.7 6.3 1.9 4.3 3.3
           
Average 2.3 6.0 2.4 2.9 4.8

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

 

2. National Capital Region (NCR)

Inflation of consumer items for the bottom 30% income households in NCR was still on a downward trend as it eased further to 1.1 percent in December 2021, from 1.5 percent in November 2021. In December 2020, inflation in the region was recorded at 5.5 percent. (Tables A and 3)

The annual average inflation in NCR increased to 4.2 percent in 2021, from 3.0 percent in 2020. (Tables 3 and 4A)

The annual drop of -0.5 percent in the index of food and non-alcoholic beverages primarily pushed down the overall inflation in NCR during the month.

In addition, annual hikes were slower in the indices of the following commodity groups during the month:

          a. Alcoholic beverages and tobacco, 7.6 percent;
          b. Clothing and footwear, 0.5 percent;
          c. Furnishing, household equipment and routine maintenance of the house, 0.6 percent;
          d. Transport, 1.2 percent; and
          e. Restaurant and miscellaneous goods and services, 1.8 percent.

On the other hand, annual upticks were higher in the indices of the following commodity groups in December 2021:

          a. Housing, water, electricity, gas, and other fuels, 3.8 percent;
          b. Health, 2.3 percent;
          c. Communication, 0.7 percent; and
          d. Recreation and culture, 0.8 percent.

The index of education retained its previous month’s annual growth rate of 0.2 percent. (Tables 3 and 4)

3. Areas Outside NCR (AONCR)

Similar to the trend at the national level and in NCR, inflation for this particular group of consumers in AONCR decelerated further to 3.4 percent in December 2021, from 4.3 percent in November 2021. Inflation for the bottom 30% income households in AONCR was registered at 4.2 percent in December 2020. (Tables A and 3)

The annual average inflation in AONCR climbed to 4.8 percent in 2021, from 2.9 percent in 2020. (Tables 3 and 4A)

Annual increments slowed down in the indices of the following commodity groups during the month:

          a. Food and non-alcoholic beverages, 3.2 percent;
          b. Alcoholic beverages and tobacco, 6.2 percent;
          c. Clothing and footwear, 2.4 percent;
          d. Health, 2.8 percent;
          e. Transport, 2.3 percent;
          f.  Communication, 0.2 percent;
          g. Recreation and culture, 1.7 percent; and
          h. Restaurant and miscellaneous goods and services, 3.5 percent.

Meanwhile, annual upticks were higher in the indices of housing, water, electricity, gas, and other fuels at 4.2 percent; and furnishing, household equipment and routine maintenance of the house at 2.0 percent.

The index of education retained its previous month’s annual growth rate of 1.0 percent. (Tables 3 and 4)

Twelve regions in AONCR posted lower inflation for the bottom 30% income households in December 2021. The lowest inflation in regions outside NCR during the month  was observed in Region III (Central Luzon) at 1.8 percent, while the highest inflation was seen in Region XI (Davao Region) at 6.8 percent. (Table 4)

Compared with their annual average rates in 2020, all regions in AONCR, except Region VII (Central Visayas), exhibited higher annual average inflation in 2021. Region II (Cagayan Valley) had the highest annual average inflation during the year at 6.4 percent. Meanwhile, Region IX (Zamboanga Peninsula) registered the lowest annual average inflation in 2021 at 2.3 percent. (Table 4a)

 

Note:

CPIs and inflation rates for the bottom 30% income households by region 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.


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