Northern Mindanao

 

Regional inflation decreased to 6.0 percent in May 2023, from 6.4 percent in the previous month. The inflation rate in May 2022 was lower at 4.6 percent. (Table A and Figure 1)

 

Table A. Year-on-Year Inflation Rates for All Items, Northern Mindanao:
May 2022, April 2023, and May 2023
(In percent, 2018=100)

                                                                       

 

 

 

By Commodity Group

 

Month-on-month, inflation was higher in May 2023 in the following commodity groups: alcoholic beverages and tobacco at 7.4 percent; Housing, water, electricity, gas, and other fuels at 4.5 percent; Furnishings, household equipment, and routine household maintenance at 4.1 percent; and personal care, and miscellaneous goods and services at 6.0 percent.  (Table B)

On the other hand, slowdowns were observed in the inflation of the following commodity groups:

1. Food and non-alcoholic beverages at 9.0 percent;
2. Clothing and footwear at 5.5 percent;
3. Health at 3.0 percent;
4. Transport at -2.3 percent;
5. Information and Communication at 0.9 percent;
6. Recreation, sport and culture at 2.2 percent; and
7. Restaurants and accommodation services at 8.3 percent.

The commodity groups that were the major contributors to the downtrend of inflation in May 2023 with percent shares were the following: food and non-alcoholic beverages at 47.3 percent and transport at 46.0 percent.

On the other hand, education services, and financial services had unchanged inflation rates.

 

Table B.  Inflation  Rate  by  Commodity  Group  for  All  Income  Households,
Northern Mindanao: May 2022, April 2023, and May 2023
(In percent, 2018=100)

Food inflation decelerated to 9.3 percent, from 9.8 percent in the previous month.

In May 2022, food inflation was lower at 4.2 percent. (Table C)

Among food commodity groups, the inflation rates of the following sub-commodities in May 2023 increased compared to April 2023: Oils and fats 12.1 percent, fruits and nuts at 17.1 percent; and vegetables, tubers, plantains, cooking bananas and pulses

at 18 percent.

On the other hand, the following food commodity groups decelerated in April 2023 compared to March 2023:

1. Meat and other parts of slaughtered land animals, 9.5 percent;
2. Fish and other seafood, 8.6 percent;
3. Sugar, confectionery, and desserts, 38.0 percent;
4. Ready-made food and other food products n.e.c. at 8.5 percent

 

Further, rice inflation accelerated to 3.7 percent in May 2023 from 3.6 percent in
April 2023. Meanwhile, inflation for corn decelerated at 8.4 percent in May 2023 while inflation for flour, bread and other bakery products, pasta products, and other cereals remained at 9.6 percent.

The major contributors to the downtrend of inflation of the food commodity group were meat and other parts of slaughtered land animals (43.1%), and fish and other seafood (42.5%).

 

Table C. Inflation Rate of Food Items for All Income Households,
Northern Mindanao:  May 2022, April 2023, and May 2023
(In percent, 2018=100)

 

  

Provinces and HUCs in Region X

 

All Items

 All the provinces and highly urbanized cities (HUCs) in the region posted lower inflation rates in May 2023 compared to April 2023 except for Misamis Occidental (5.9%). (Table A)

The City of Cagayan de Oro and Bukidnon were the major contributors to the downtrend of the regional inflation.

Year-on-year, only the City of Iligan had lower inflation rate in May 2023 among all provinces and HUCs in the region.

 

Food Items

Food inflation in the provinces of Northern Mindanao decelerated in May 2023 compared to the previous month except for Lanao del Norte (10.3%) and Misamis Occidental (7.2%).  Inflation rate in Lanao del Norte remained the same as with the previous month while that of Misamis Occidental increased.

On the other hand, the City of Iligan (9.3%) and the City of Cagayan de Oro (9.3%) had the same level of inflation for the month of May 2023. Both cities had lower inflation rates in May compared to April this year.

Bukidnon (39.1%), City of Cagayan de Oro (32.7%), and City of Iligan (20.2%) had the largest contributions to the downward trend of the regional food inflation.

Year-on-year, food inflation in all provinces and highly urbanized cities (HUCs) in the region accelerated in May 2023.

 

Table D.  Inflation Rate of Food Items for All Income Households by Province/HUC,
Northern Mindanao: May 2022, April 2023, and May 2023
(In percent, 2018=100)

 

 

 

  

 

(SGD.)JOSE B. TUASON, JR.
(Accountant III)
Officer-in-Charge

 

SBB/LCSC

 

For further inquiries, you may contact:

 

Statistical Operations and Coordination Division
Philippine Statistics Authority Regional Statistical Service Office 10
Limketkai Module-2 BPO & Cyberpark Bldg.,
Rosario Crescent, Limketkai Center, Cagayan de Oro City
Email: rsso10@psa.gov.ph
Telephone: (088) 291-1672; 09178219152

 

  

 

TECHNICAL NOTES

 

Consumer Price Index (CPI) – The CPI is an indicator of the changes in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

 

Used of CPI – CPI is most widely used in the calculation of the inflation rate and purchasing power of peso. It is a major statistical series used for economic analysis and as a monitoring indicator of government economic policy.

 

Computation of CPI – The computation of the CPI involves consideration of the following important points:

 

1. Base Period – The reference data or base period is the benchmark or reference date or period at which the index is taken as equal to 100.
2. Market Basket – A sample of the thousands of varieties of goods purchased for consumption and services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers.
3. Weighing System – The weighing pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.
4. Formula – The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2018) weights.
5. Geographic Coverage – CPI values are computed at the national, regional, and provincial levels, and for selected cities.

 

Inflation Rate (IR) – is the rate of change of the CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of peso.

 

Purchasing Power of Peso (PPP) – shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.