Summary Inflation Report Consumer Price Index (2018 - Base Year): May 2022

Reference Number: 

202206-0800-16

Release Date: 

Wednesday, June 8, 2022
Eastern Visayas
 
The Inflation Rate (IR) in Eastern Visayas rose further to 6.3 percent in May 2022, from 6.1 percent in April 2022. The regional IR was higher than the 5.4 percent national IR in May 2022 and was the highest recorded IR since November 2018 (Table 2). The IR in May 2021 was lower at 4.3 percent. The average IR for the first five (5) months of the year stood at 5.6 percent (Table 1 and Table 2).
 
The acceleration in the region’s IR in May 2022 was primarily due to the higher annual growths in the indices for transport at 16.4 percent; housing, water, electricity, gas, and other fuels  at 8.5 percent; and personal care, and miscellaneous goods and services at 1.4 percent. The following commodity groups also contributed to the upward trend of the region’s IR during the month:
  1. Restaurants and accommodation services, 3.1 percent;
  2. Information and communication, 0.6 percent;
  3. Alcoholic beverages and tobacco, 5.8 percent;
  4. Furnishings, household equipment, and routine household maintenance, 0.9 percent;
  5. Recreation, sport, and culture, 0.5 percent; and
  6. Health, 1.0 percent
On the contrary, IR for food and non-alcoholic beverages commodity group was slightly lower at 6.1 percent.
 
The rest of the commodity groups either retained their previous month’s IRs or had zero percent annual growths (Table 3).
 
IR for food index declined to 6.4 percent during the month, from 6.6 percent in April 2022. IR for food in May 2021 was posted at 4.7 percent (Table 3). 
 
The IR of rice index slowed down to 1.4 percent in May 2022, from an annual hike of 3.1 percent in April 2022.  In addition, IRs slowed down in the indices of fish and other seafood at 7.8 percent; and milk, other dairy products, and eggs at 2.9 percent.
 
On the other hand, meat and other parts of slaughtered land animals; and fruits and nuts continued to register double-digit IRs at faster rates of 17.6 percent and 11.7 percent. The rest of the food groups had higher annual growth rates (Table 3).
 
Inflation Rate by Region
 
Except for Central Visayas and Northern Mindanao, all regions registered higher IRs in May 2022 compared with their IRs in the previous month. Among the regions, Eastern Visayas’ IR at 6.3 percent ranked fourth highest in May 2022. CAR registered the highest IR at 6.9 percent. Central Luzon recorded the second highest IR at 6.7 percent, followed by Davao Region at 6.4 percent. On the other hand, BARMM recorded the lowest IR at 2.4 percent in May 2022, followed by Northern Mindanao and NCR at 4.6 percent and 4.7 percent, respectively (Figure 2 and Table 4).
 
Inflation Rate by Province
 
Relative to their IRs in April 2022, Biliran, Leyte, and Southern Leyte recorded higher IRs in May 2022. On the other hand, decreased IRs were noted in Eastern Samar, Northern Samar, and Samar. Among the provinces, Southern Leyte posted the highest IR at 8.7 percent in May 2022. Northern Samar’s IR came next at 7.1 percent, followed by Leyte at 6.7 percent; Samar at 5.9 percent; and Biliran at 5.0 percent. The lowest IR was noted in Eastern Samar at 3.8 percent (Figure 3 and Table 5).
 
Meanwhile, IR for Tacloban City, the lone Highly Urbanized City (HUC) in the region, was recorded at 5.0 percent in May 2022, higher than its 4.5 percent IR last month (Figure 3 and Table 5).
 
TECHNICAL NOTES
 
The current CPI series is 2018-based. The rebasing to 2018 is the 12th base period and 11th rebasing for CPI. The five steps involved in the rebasing/computing of CPI are as follows: (1) identification of the base year (2) determination of the market basket (3) determination of household consumption patterns/weights (4) monitoring of prices of items in the basket and (5) computation of CPI.
 
The 2018-based CPI series uses the same method of computation as the 2012-based CPI series, which is chained Laspeyres formula.
 
BASE YEAR - is a period at which the index number is set to 100. It is the reference point of the index number series. The CPI is rebased from 2012 to 2018.
 
CONSUMER PRICE INDEX (CPI) - is an indicator of the change in the average prices of a fixed basket of goods and services commonly purchased by households relative to a base year.
 
DEFLATION - is the decline in prices for goods and services that happens when the inflation rate dips below zero percent.
 
INFLATION RATE (IR) - is the annual rate of change or the year-on-year changes in CPI. It indicates how fast or how slow price changes over two time periods (year-on-year).  Contrary to common knowledge, low inflation does not necessarily connote that prices of commodities are falling.  It means that prices continue to increase but at a slower rate.
 
MARKET BASKET - refers to a sample of goods and services commonly purchased by the households. The market basket for CPI was updated using the results of the 2021 Survey of Key Informants (SKI).
The commodities included in the 2018-based CPI market basket were the modal commodities which were considered as the most commonly purchased/availed commodities by the households. The commodities in the 2018-based CPI market basket were grouped/classified according to the 2020 Philippine Classification of Individual Consumption According to Purpose (PCOICOP).
 
MONITORING OF PRICES - involves establishing baseline information for the prices of the items in the base year and monitoring the prices of the items on a regular basis. Data collection for the CPI is done by the provincial office twice a month, except for petroleum products which are monitored on a weekly basis, every Friday. First collection phase is done during the first five days of the month while the second phase is on the 15th to 17th day of the month.
 
PURCHASING POWER OF PESO (PPP) - gives an indication of the real value of peso (how much it is worth) in a given period relative to its value in the base period. It is computed as the reciprocal of CPI multiplied by 100.
 
RETAIL PRICE - refers to the actual price at which retailers sell a commodity on spot or earliest delivery, usually in small quantities for consumption and not for resale.  It is confined to transactions on cash basis in the free market and excludes black-market prices and prices of commodities that are on sale as in summer sales, anniversary sales, Christmas sales, etc.
 
WEIGHTS - is a value attached to a commodity or group of commodities to indicate the relative importance of that commodity or group of commodities in the market basket. The weights for the 2018-based CPI were derived from the expenditure data of the 2018 Family Income and Expenditure Survey (FIES). The weight for each commodity/group of commodities is the proportion of the expenditure commodity/group of commodities to the total national expenditure. The sum of the weights of the commodity groups at the national level is equal to 100. 
 
 
Sgd WILMA A. PERANTE
Regional Director
 
 

 

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