Inflation rate went up by 3.0 percent in June 2020
After three consecutive months of deceleration, Cagayan Valley’s headline inflation rate went up to 3.0 percent in June 2020. In the previous month, inflation in the region was noted at 2.0 percent and in the same period of last year at 2.7 percent. Following the trend of the region, all provinces exhibited positive growths during the month. Inflation in Batanes which displayed the lowest during April and May increased to 1.9 percent during this month.
The uptrend in the inflation this month can be noted to the increased annual rates of the following commodities:
- Alcoholic beverages and tobacco, 16.3 percent;
- Housing, water, electricity, gas and other fuels, 1.8 percent;
- Health, 4.3 percent; and
- Transportation, 6.7 percent.
Indices of the rest of the commodity groups such as Education; Furnishings, Household Equipment and Routine Maintenance of the House; Clothing and Footwear; Restaurant and Miscellaneous Goods and Services; Recreation and Culture; and Food and Alcoholic Beverages posted annual declines. Only the commodity group Communication retained its previous month’s annual growth rate at 0.2 percent.
Consumer Price Index (CPI) for the national and Cagayan Valley generally showed a similar increasing trend for the past year. During the first quarter of 2020, declining trend was observed but the CPI gradually rose starting from April with the highest record of 124.4 index points and 122.9 index points in Cagayan Valley and the Philippines respectively, noted in June.
In general, all provinces reported gains in the CPI this month compared to same period of last year following the trend of the region. Isabela province had the highest growth at 4.8 index points followed by Nueva Vizcaya at 1.8 index points higher than their records in June 2019.
Across commodity groups, the top three groups with the highest CPI in the region were Alcoholic Beverages and Tobacco, Furnishings, Household Equipment and Routine, Maintenance of the House and Clothing and Footwear with 268.7, 130.5 and 127.2, respectively. Meanwhile, the lowest CPI was noted in Education still at 95. 1.
Particularly in the Alcoholic Beverages and Tobacco group, the highest CPI was recorded in Cagayan with 289.9, followed by Isabela at 271.3 and Batanes at 258.2. Meanwhile, Education maintained its lowest CPI report of 95.1 since the start of 2020.
The Purchasing Power of Peso (PPP) in the region went down to PhP 0.80. This means that the value of PhP 1.00 in 2012 is only worth PhP 0.80 in June 2020. Compared to its value in 2019, the value of PPP weakened by PhP 0.03 from its PhP 0.83 of same period last year.
During the month, the province of Isabela displayed the weakest PPP at PhP 0.78 while Quirino remains the strongest across provinces at PhP 0.84. The provinces of Cagayan and Quirino retained their PPPs compared last month.