Summary Inflation Report Consumer Price Index (2018=100) National Capital Region: July 2023

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Release Date: 

Tuesday, August 8, 2023

Consumer Price Index in NCR upticks to 118.6 percent

The CPI in NCR this July 2023 upticks to 118.6 percent from 118.4 percent in the previous month.   On a yearly basis, the CPI increased by 6.3 percentage points during the month from 112.3 percent in July 2022.  The CPI in NCR consistently remained below the Philippines’ record settling at 118.6 percent, up by 0.2 percentage points from its 118.4 percent index in June 2023. 

The CPI of 118.6 percent in July 2023 indicated that consumer prices, on average, had increased by 18.6 percent from the base year 2018.  This can also be interpreted that a basket of commodities that can be purchased at PhP100.00 by an average Filipino household in NCR in 2018 can be bought at PhP118.6 in July 2023. (Figure 1)

Inflation rate in NCR remains at 5.6 percent

The inflation rate in NCR remained at 5.6 percent in July 2023.  In July 2022, the inflation rate was recorded at 5.1 percent. The average inflation for the first seven (7) months of 2023 stood at 7.13 percent.  (Figure 3)

At the national level, the headline inflation rate for the Philippines slowed down to 4.7 percent in July 2023 from 5.4 percent in June 2023.   Slower inflation was also observed in  other regions. Among the regions that registered slower inflation, Region IX (Zamboanga Peninsula) recorded the most with a 1.9 percentage points decline in their inflation rates this month compared to June 2023. This was followed by MIMAROPA Region with a decline of 1.5 percentage points, and Region XI (Davao Region) with a decline of 1.4 percentage points.  

Index of Transport continues its downward trend

The index of transport in NCR decreased a total of 0.9 percentage points in its inflation rate in July 2023 to reach -3.2 percent this July 2023. The index of clothing and footwear commodity group came next with an inflation rate of 2.1 percent, down by 0.6 percentage points from 2.7 percent in June 2023 and was followed by the index of  alcoholic beverages and tobacco with an inflation rate of 6.4 percent this July 2023 from 6.8 last June 2023.
In contrast, higher annual markups were noted in the following commodity groups during the month:
a. Food and Non-Alcoholic Beverages, 6.4 percent; and
b. Restaurants and Accommodation Services, 4.0 percent.
Meanwhile, the indices for the rest of the commodity groups continued to move at their respective rates in July 2023. (Table 1)

Food inflation speeds up to 6.5 percent

Inflation of food accelerated  to 6.5 percent in July 2023 from 6.0 percent in June 2023. The index of vegetables, tubers, plantains, cooking bananas and pulses is the main contributor to higher food inflation as its annual increment accelerated to 28.5  percent in July 2023 from 14.7 percent in June 2023. This was followed by the rice commodity group with an increase of 0.7 percentage points this month from 1.4 percent in June 2023 to 2.1 in July 2023 and the index of corn  with 11.8  percent from 11.3 percent in the previous month.  
The following other food commodity groups exhibited slower inflation rate during the month:
a) Flour, Bread And Other Bakery Products, Pasta Products, And Other Cereals, 10.7 percent;
b) Meat and other parts of slaughtered land animals, -2.8 percent;
c) Milk, other dairy products and eggs, 8.0 percent;
d) Oils and Fats, 3.8 percent;
e) Fruits and nuts, 19.3 percent;
f) Sugar, confectionery and desserts, 17.8 percent; and
g) Ready-made food and other food products n.e.c., 8.5 percent
Moreover, the inflation rate of fish and other seafood remained at 5.1 percent in July 2023.

Purchasing Power of Peso (PPP) holds steady at 0.84

The PPP is a measure of the real value of the peso in a given period relative to a chosen reference 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.  
The PPP in NCR remained constant at June in July 2023. This means that a peso in 2018 was worth 84 centavos in July 2023.  The PPP in July 2022 was higher at 0.89. 
(Figure 5)

Regional Director