Headline inflation in Zambales eased to 8.7 percent in August 2022, after six consecutive months of acceleration. With this month’s inflation, the province’s average inflation from January to August 2022 stood at 7.6 percent. In August 2021, inflation rate was posted at 7.3 percent. (Table A and Figure 1)
The slowdown in inflation in August 2022 was primarily due to the lower annual increment recorded in the index for food and non-alcoholic beverages at 6.6 percent, from 8.9 percent in the previous month. This was followed by housing, water, electricity, gas and other fuels whose index declined by 15.6percent year-on-year, from 19.4 percent in July 2022. The index for restaurants and accomodation services also exhibited lower annual growth at 4.0percent, from 9.1 percent in July 2022.
In addition, inflation rates were also lower for the following commodity groups during the month:
a. Furnishings, household equipment, and routine household maintenance, 3.1 percent;
b. Health, 2.2 percent;
c. Transport, 17.4 percent;
d. Information and communication, 0.7 percent;
e. Recreation, sport and culture, 5.7 percent; and
f. Personal care, and miscellaneous goods and services, 5.8 percent.
On the other hand, inflation rates were higher for the following commodity groups during the month:
a. Alcoholic beverages and tobacco, 9.6 percent
b. Clothing and footwear, 6.1 percent; and
c. Education services, 1.6 percent.
Meanwhile, the financial services group retained its previous month’s inflation rate. (Table B)
Inflation for food slid to 6.7 percent during the month, from 9.1 percent in July 2022. In August 2021, it was higher at 7.9 percent. (Table C)
The deceleration in food inflation was mainly brought about by fish and other seafood, which declined annually by 2.0 percent. Moreover, annual hikes slowed down in the indices of meat and other parts of slaughtered animals at 5.9 percent; and vegetables, tubers, plantains, cooking bananas and pulses at 7.9 percent.
On the other hand, the following food groups exhibited faster annual growth during the month:
a. Rice, 0.2 percent;
b. Corn, 12.8 percent;
c. Flour, bread, and other bakery products, and other cereals, 11.7 percent;
d. Milk, other dairy products and eggs, 9.0 percent;
e. Fruits and nuts, 9.6 percent; and
f. Sugar, confectionery and desserts, 29.1 percent.
Purchasing Power of Peso recorded at Php0.80 in August 2022
Purchasing Power of Peso (PPP) continue to weaken through the years and reached Php0.80 in August 2022. The PPP of 0.80 implies that the Php1.00 in 2018, as the base year, values only Php0.80 in August 2022.
Consumer Price Index (CPI)
An indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year. Prices are compared to a base year and weighted by the appropriate consumption pattern. The present series uses 2012 as the base year.
Components of the CPI
Base Year/Base period
A reference date at which the index is equal to 100. The base year is 2018.
A sample of the variety of goods and services commonly consumed by an average Filipino household to represent the price behavior of all goods and services brought by consumers.
A value attached to the commodity or group of commodities depending on the magnitude of its distribution to the index.
Establishments where prices of commodities are quoted.
Prices of Items in Market Basket
Baseline information for prices of the items in the base year is established and monitoring the prices of items is done on a regular basis.
The annual rate of change or the year-on-year changes in the average retail prices expressed in percent.
Purchasing Power of the Peso (PPP)
The measure of how much the peso in the base period is worth in the current period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100.