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

The headline inflation in Cagayan Valley increased to 4.5 percent in August 2023, from 3.4 percent in July 2023. The average inflation from January to August 2023 stood at 5.3 percent. In August 2022, inflation rate was higher at 5.2 percent. (Figure 1)

Table 1. Inflation Rates in Cagayan Valley, by Commodity Group, In Percent
(2018=100)

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

The increase in the region’s inflation in August 2023 was mainly due to the higher annual hike in the heavily-weighted food and non-alcoholic beverages during the month at 9.0 percent, 6.0percent in the previous month. This was followed by transport with -1.8 percent, from -8.2 percent in the previous month. Moreover, the following commodities also exhibited higher inflation in August 2023 than in the previous month:

• alcoholic beverages and tobacco, 11.2 percent;
• education services, 2.4 percent;
• health, 3.4 percent;
• recreation, sport and culture, 6.5 percent; and
• clothing and footwear, 6.3 percent.

Conversely, five commodity groups recorded lower inflation rates during the month:

• housing, water, electricity, gas and other fuels, -3.6 percent;
• furnishings, household equipment and routine household maintenance, 6.2 percent;
• information and communication, 0.3 percent;
• restaurants and accommodation services, 3.8 percent; and
• personal care, and miscellaneous goods and services; 6.2 percent.
The annual rates in the index financial services remained at their previous month’s annual rates at 0.0 percent. (Table 1)

Food inflation for the regional level accelerated to 9.2 percent during the month, from 6.1 percent in July 2023.  In August 2022, food inflation was lower at 3.5 percent.

The increase in food inflation in August 2023 was primarily brought about by the higher annual growth rate observed in vegetables, tubers, plantains, cooking bananas and pulses at 50.6 percent, from 36.3 percent in July 2023. This was followed by rice with an inflation rate of 12.0 percent, from 7.2 percent in the previous month. In addition, the following food groups also showed higher inflation rates than in the previous month:

• meat and other parts of slaughtered animals, -3.4 percent (from -6.1 percent in July 2023);
• fish and other seafood, 9.1 percent (from 7.0 percent in July 2023);
• fruits and nuts, 1.8 percent (from -1.2 percent in July 2023);
• ready-made food and other products n.e.c., 4.7 percent (from 4.5 percent in July 2023); and
• Corn, 27.3 percent (from 26.1 percent in July 2023).

In contrast, the rest of the food groups had lower inflation rates than in the previous month.

Table 2. Year-on-Year Inflation Rates in Cagayan Valley, All Items, In Percent

(2018=100)

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

Following the trend at the regional level, inflation in the provinces of Cagayan Valley also registered an uptrend in August 2023 from July 2023 except for Quirino which remained its previous month’s rate. The province of Cagayan had the highest inflation rate of 7.3 percent, while Isabela remained the lowest inflation rate at 2.6 percent. (Table 2) 

For August 2023, the growth in the regional inflation was mainly contributed by the province of Cagayan with 87.2 percent share to the uptrend. The increase in the inflation of the province was due to the higher annual growth rates of food and non-alcoholic beverages, transport, alcoholic beverages and tobacco, health and clothing and footwear.

The rest of the commodity groups in the province either remained at their previous month’s rates or had lower annual rates.

_________________________________________________________________________
Note:
CPIs and inflation rates by province and selected city are posted at the PSA website (https://www.psa.gov.ph/).

ENGR. GIRME M. BAYUCAN
(Chief Statistical Specialist)
Officer-in-Charge, PSA RSSO II

//EMDP/MLLP