Inflation Rate Increased Further to 6.6 percent in December 2020

Reference Number: 

SR-2021-001

Release Date: 

Wednesday, January 13, 2021

Body: 

The headline inflation rate of the Cagayan Valley increased further to 6.6 percent in December 2020. In the previous month, inflation in the region was noted at 5.2 percent and in the same period of last year at 1.6 percent. This is the highest inflation recorded since December 2018. Compared with their annual growth rates in November 2020, all provinces had higher inflation in December 2020. The highest inflation during the month was noted in Isabela at 7.9 percent while the lowest remained in Quirino at 3.8 percent.                                                                             

The uptrend in the inflation this month can be noted to the increased annual rates of the following commodities:

  • Food and Non-Alcoholic Beverages, 8.0 percent;
  • Alcoholic Beverages and Tobacco, 13.0 percent;
  • Health, 5.6 percent;
  • Transport, 23.7 percent; and
  • Restaurant and Miscellaneous Goods and Services, 2.6 percent.

Meanwhile, only the Housing, Water, Electricity, Gas and Other Fuels registered slower annual rate at 0.9 percent. The rest of the commodity groups retained their previous month’s annual growth rates.

 

The Consumer Price Index (CPI) for all items in the region for the month-in-review was at 130.9, a growth of 2.8 index points from last month’s record and up by 8.1 index points from same period of last year. In general, all provinces reported gains in the CPI this month compared to same period of last year following the trend of the region. The province of Isabela had the highest growth at 9.9 index points followed by Batanes and Nueva Vizcaya both at 8.3 index points higher than their records in December 2019.

Across commodity groups, the top three groups with the highest CPI in the region were Alcoholic Beverages and Tobacco, Food and Non-Alcoholic Beverages and Furnishings, Household Equipment and Routine Maintenance of the with 286.0, 134.5 and 132.8, respectively. Meanwhile, still had the lowest CPI was noted in Education at 96.0.

Particularly in the Alcoholic Beverages and Tobacco group, the highest CPI was recorded in Cagayan with 297.9, followed by Isabela at 293.36 and Batanes at 283.6. Meanwhile, Education maintained its lowest CPI report of 96.0 since the start of 2020. Cagayan province registered the lowest CPI in this group at 75.0 while Batanes posted the highest at 200.9.

The Purchasing Power of Peso (PPP) in the region generally weakened on the last quarter of the year and had the least PPP in December 2020 at PhP 0.76. This means that the value of PhP 1.0 in 2012 is only worth PhP 0.76 in December 2020. Compared to its value in 2019, the value of PPP weakened by PhP 0.05 from its PhP 0.81 of same period last year. During the month, the province of Isabela displayed the weakest PPP at PhP 0.74 while Quirino remains the strongest across provinces at PhP 0.82.

 

 
MARILYN T. ESTRADA
Regional Director
 
 
//GMB/MLLP