PREVIOUS RELEASE

Summary Inflation Report Consumer Price Index for the Bottom 30% Income Households (2012=100) : September 2020

Reference Number: 2020-307
Release Date: 06 October 2020

September 2020

 

 

1. Philippines

Bottom 30%

The country’s inflation for the bottom 30% income households was slightly higher at 2.8 percent in September 2020, from 2.7 percent in August 2020. This brings the year-to-date inflation for this income group of consumers to 2.6 percent. In September 2019, inflation for the bottom 30% income households was posted at 0.2 percent. (Table A, and Figure 1)

Higher overall inflation was primarily pushed up by the 16.3 percent annual increase in the transport index during the month. In addition, annual increments were also higher in the indices of housing, water, electricity, gas, and other fuels at 2.1 percent; and education, 0.8 percent.

On the other hand, slower annual mark-ups during the month were observed in the indices of alcoholic beverages and tobacco at 16.8 percent; health, 3.2 percent; and restaurant and miscellaneous goods and services, 3.0 percent. The index of recreation and culture exhibited an annual drop of -0.1 percent in September 2020, from an annual uptick of 0.2 percent in the previous month.

The indices of the rest of the commodity groups such as food and non-alcoholic beverages; clothing and footwear; furnishing, household equipment and routine maintenance of the house; and communication retained their previous month’s annual growth rates. (Tables 3 and 4)

For food, inflation at the national level moved up at the same annual rate as in the previous month at 1.1 percent. In September 2019, food inflation dropped by -2.5 percent. (Table 7)

By food group, the index of fruits posted a higher annual gain at 9.2 percent during the month. Likewise, the annual rate of the corn index rose by 0.5 percent, from an annual decrease of -0.6 percent in the previous month.

On the contrary, annual hikes were slower in the indices of the following food groups in September 2020:

          a. Other cereals, flour, cereal preparation, bread, pasta and other bakery products, 2.5 percent;
          b. Meat, 1.9 percent;
          c. Fish, 2.2 percent;
          d. Milk, cheese, and egg, 4.1 percent; and
          e. Food products, not elsewhere classified, 7.4 percent.

Moreover, annual declines were still observed in indices of rice at -0.8 percent; vegetables, -2.0 percent; and sugar, jam, honey, chocolate and confectionery, -0.1 percent. The annual rate for  oils and fats index in the current month is the same as its previous month’s annual rate of 2.0 percent. (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 – September 2020
(2012=100)

Month

Year

2016 2017 2018 2019 2020
January 0.7 2.0 3.6 5.2 2.3
February 0.8 2.2 4.4 4.3 2.1
March 0.8 2.2 5.0 3.4 2.4
April 0.6 2.4 5.2 3.1 2.9
May 1.0 2.1 5.4 3.2 2.9
June 1.2 2.1 5.4 3.1 3.0
July 1.1 1.9 6.2 2.5 2.9
August 1.0 2.3 6.9 1.7 2.7
September 1.2 2.5 8.0 0.2 2.8
October 1.5 2.7 8.1 -0.1  
November 1.5 2.6 7.3 0.7  
December 1.8 2.7 6.3 1.9  
           
Average 1.1 2.3 6.0 2.4  

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

 

2. National Capital Region (NCR)

Inflation of consumer items for this particular income group in NCR slowed down to 2.8 percent in September 2020. In the previous month, inflation in the area was 3.0 percent, and in the same month of the previous year, -0.2 percent. (Tables A and 3)

The index of communication slid at an annual rate of -0.6 percent. Moreover, annual mark-ups decelerated in the indices of the following commodity groups during the period:

          a.  Food and non-alcoholic beverages, 1.8 percent;
          b.  Alcoholic beverages and tobacco, 12.4 percent;
          c.  Furnishing, household equipment and routine maintenance of the house, 1.4 percent; and
          d.  Transport, 23.1 percent.

On the other hand, inflation rates were higher in the indices of clothing and footwear at 1.4 percent; education, 0.6 percent; and restaurant and miscellaneous goods and services, 1.6 percent. The index of housing, water, electricity, gas, and other fuels exhibited an annual increase of 0.7 percent during the month, after registering annual declines for seven consecutive months.

The indices of the rest of the commodity groups retained their previous month’s annual growth rates. (Tables 3 and 4)
 

3. Areas Outside NCR (AONCR)

Inflation for the bottom 30% income households in AONCR followed the national trend as it rose to 2.8 percent in September 2020, from 2.7 percent in August 2020. In September 2019, inflation in the area was 0.2 percent. (Tables A and 3)

Higher annual increments were observed in the indices of transport at 16.0 percent; and education, 0.8 percent.

On the contrary, annual mark-ups eased in the indices of alcoholic beverages and tobacco at 16.9 percent; health, 3.2 percent; and restaurant and miscellaneous goods and services, 3.1 percent. The annual rate of recreation and culture index declined by -0.1 percent during the month, from an annual gain of 0.2 percent in the previous month.

The indices of other commodity groups remained at their previous month’s annual growth rates. (Tables 3, and 4)

Seven regions outside NCR posted higher inflation for the bottom 30% income households in September 2020. Region V (Bicol Region) and Region VII (Central Visayas) recorded the highest inflation at 3.7 percent, while Region IX (Zamboanga Peninsula) still had the lowest at 0.2 percent during the month. (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.


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