Consumer Price Index in the NCR has upticks to 121.8 percent

The Consumer Price Index (CPI) for the National Capital Region (NCR) experienced a slight uptick, rising by 0.4 percentage points from 121.4 percent in April 2024 to 121.8 percent in May 2024. Compared to May 2023, the CPI showed a year-on-year increase of 3.7 percentage points, climbing from 118.1 percent. Throughout this timeframe, the NCR's CPI consistently stayed below the overall CPI of the Philippines, which reached 125.6 percent in May 2024, marking a 0.1 percentage point increase from the previous month's index of 125.5 percent.

In May 2024, the CPI of 121.8 percent indicates that consumer prices in the NCR had risen by 21.8 percent compared to the base year of 2018. This means that a basket of goods valued at PHP 100.00 in 2018 can now be purchased at PHP 121.8 in May 2024 by an average Filipino household in NCR. (Figure 1)

Inflation rate in NCR increases to 3.1 percent.

In May 2024, the inflation rate in NCR experienced a marginal uptick reaching 3.1 percent, compared to 2.8 percent in April 2024. This marks a 0.3 percent increase in inflation compared to the preceding month. In May 2023, the inflation rate in the region stood at 6.5 percent. (Figure 2)

Similarly, on a national scale, inflation in the Philippines saw a slight increase to 3.9 percent in May 2024 from 3.8 percent in April 2024. This upward trajectory in inflation was observed across six (6) out of the seventeen regions. 
Central Visayas observed the most significant increase in its inflation rate, with a rise of 0.8 percentage points. This was followed by National Capital Region (NCR) with an increase of 0.3 percentage points. And three (3) other provinces, Western Visayas, Northern Mindanao and Davao Region,  each experiencing an increase of 0.2 percentage points.

Food and non-alcoholic beverages contributes acceleration within NCR.

The food and non-alcoholic beverages index made the most significant contribution to the increase in the inflation rate in NCR with a 4.4 percent increase during the month from 3.8 percent in April 2024. The increase in the inflation rate in food and non-alcoholic bevarages contributed to around 46.7 percent to the overall uptrend in inflation for the month.  The index of housing, water, electricity, gas, and other fuels came next as the major contributor to higher inflation in the region as it accelerated to 1.9 percent this May 2024 from 1.4 percent inflation rate in April 2024. This was followed by the index of Transport which registered an increase of 3.4 percent from its 2.6 percent in the previous month. 

On the other hand, annual decreases were observed in the indices of the following commodity groups: 

1. Alcoholic beverage and tobacco, 4.2 percent from 3.5 percent;

2. Clothing and footwear, from 2.2 percent to 2.1 percent;

3. Furnishings, household equipment and routine household maintenance, from 1.9 percent to to 1.7 percent;

4. Health, from 2.6 percent to 2.5 percent;

5. Recreation, sports and culture, from 1.7 percent to 1.6 percent; and

6. Personal care, and miscellaneous goods and services, from 2.9 percent to 2.8 percent.

Meanwhile, the annual growth rates for the remaining commodity groups held on to the previous month’s record. (Table 1)

Food inflation bounces to 4.6 percent

Inflation of food bounced to 4.6 percent this May 2024, recording a 0.6 percentage points increase from 4.0 percent inflation in April 2024.  The speed up of food inflation was mainly brought by the higher year-on-year growth rate in the index of meat and other parts of slaughtered land animals which increased to 1.8 percent in May 2024 from negative 0.2 percent in April 2024.  This was followed by the index of rice which registered an annual increase of 17.7 percent this month from 16.4 percent in April 2024, and the commodity groups of fish and other seafood and milk, other dairy products and eggs which registered higher inflation with upticks from 1.0 percent from previous month to  1.4 percent in May 2024 and 0.8 percent in April 2024 to 1.5 percent this May 2024 on their inflation rate, respectively. Other three commodity groups have contributed to the higher inflation in the region, these are Ready-made food and other food products n.e.c. with annual increase from 4.3 percent form 3.4 percent from the previous month, oil and fats with an annual increase from negative 5.7 percent this May 2024 from negative 5.9 percent from April 2024 and corn was recorded at 4.3 percent from 3.9 percent in the previous month.

Meanwhile, the following four commodity groups also exhibited lower inflation this month:

a)    Flour, bread and other bakery products, pasta products, and other cereals, moved down to 2.5 percent;
b)    Fruits and nuts, 7.2 percent;
c)    Vegetables, tubers, plantains, cooking bananas and pulses, 2.9; and
d)    Sugar, confectionery and desserts, -0.3 percent.
 

Purchasing Power of the Peso (PPP) remains at 0.82

The PPP is a measure of the real value of the peso in a given period relative to a chosen reference period and is computed by getting the reciprocal of the CPI and multiplying the result by 100.  The PPP is inversely related to the CPI thus an increase in the CPI will result in a decrease in the PPP. 

In May 2024, the PPP in NCR remains at 0.82, this is the fifth time that the PPP held on to its previous month’s level. The PPP in May 2023 was at 0.85. (Figure 3)

PACIANO B. DIZON
Regional Director