Thursday, October 7, 2021
Central Luzon’s Inflation Rose to 5.6 Percent
The annual inflation rate of Central Luzon rose to 5.6 percent in August 2021 from 3.9 percent in July 2021, Further, it is also two times higher than the recorded rate of 2.6 percent in August 2020. (Figure 1)
Central Luzon alongside SOCCKSARGEN ranked as the 5th highest inflation rate among the 17 regions in the country at 5.6 percent. Cagayan Valley had the highest inflation rate at 7.5 percent while BARMM posted the lowest inflation rate at 2.5 percent in August 2021.
The national annual inflation accelerated to 4.9 percent in August 2021 recording a 0.9 percentage point increase from its rate in July 2021.
Figure 2 presents the annual inflation rates of the different regions in the Philippines in August 2021.
The heavily weighted food and non-alcoholic beverages accelerated to 7.6 percent in August 2021 posting a 3.0 percentage points increase from its recorded rate in July 2021. Likewise, faster increases were recorded in the indices of alcoholic beverages and tobacco (8.1%), clothing and footwear (1.0%), housing, water, electricity, gas and other fuels (4.1%), furnishings, household equipment and routine maintenance of the house (1.4%), health (4.9%), transport (9.8), recreation and culture (0.8%), and restaurant and miscellaneous goods and services (3.5%).
On the other hand, same rate of increase from the previous month was recorded in the indices of communication at 0.5 percent and education at 0.6 percent. (Table 1)
The regional food index pushed up to 8.1 percent in August 2021 which is 3.3 percentage points higher than its recorded rate of 4.8 percent in July 2021. The increase can be attributed to the significant upsurge in the indices of corn and vegetables, which increased by 13.8 and 23.4 percentage points, respectively. Moreover, increases in the following indices were posted in August 2021:
• Meat, 15.3 percent;
• Fish, 10.4 percent;
Rice, 2.4 percent;
• Oils and fats, 4.5 percent; and
• Other cereals, flour, cereal preparation, bread, pasta and other bakery products,
Meanwhile, the index of fruits dropped at a slower rate of -0.7 percent. Milk, cheese and eggs, on the other hand, registered a faster rate of drop at -0.5 percent. (Table 1a)