Consumer Price Index in the NCR decelerates at 121.4 percent

The Consumer Price Index (CPI) for the National Capital Region (NCR) decelerated at 121.4 percent from March to April 2024. In comparison to April 2023, the CPI displayed a year-on-year rise of 3.3 percentage points, ascending from 118.1 percent. Throughout this timeframe, the NCR's CPI consistently stayed below the overall CPI of the Philippines, which reached 125.5 percent in April 2024, marking a 0.1 percentage point decrease from the previous month's index of 125.6 percent.

In April 2024, the CPI of 121.4 percent indicates that consumer prices in the NCR has risen by 21.4 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 121.4 in April 2024 by an average Filipino household in NCR. (Figure 1)

Inflation rate in NCR declines to 2.8 percent.

In April 2024, the inflation rate in NCR experienced a marginal declining reaching 2.8 percent, compared to 3.3 percent in March 2024. This marks a 0.5 percentage point decrease in inflation compared to the preceding month. In April 2023, the inflation rate in the region stood at 7.1 percent. (Figure 2)

Similarly, on a national scale, inflation in the Philippines saw a slight increase to 3.8 percent in April 2024 from 3.7 percent in March 2024. This upward trajectory in inflation was observed across thirhteen (13) out of the seventeen regions. Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) was observed the most significant increase in its inflation rate, with a rise of 1.3 percentage points. This was followed by Region IX (Zamboanga Peninsula) and Region VI (Western Visaya), each experiencing an increase of 1.2 and 1.0 percentage points, respectively.

Housing, water, electricity, gas, and other fuels drive decelaration within NCR.

The housing, water, electricity, gas, and other fuels index is the main driver to the slowdown of inflation rate in NCR with a 1.4 percentage during the month from 2.4 percent in March 2024. The decrease in the inflation rate in housing, water, electricity, gas, and other fuels contributed to around 51.3 percent to the overall downtrend in inflation for the month. Also contributing to the deceleration of inflation in the area was the slower inflation rate reported in the heavily-weighted food and non-alcoholic beverages at 3.8 percent during the month from 4.5 percent in the previous month and was followed by the index of alcoholic beverages and tobacco which registered a decrease of 4.2 percent during the month and 5.2 percent in the previous month.

Moreover, lower year on year marks-up were noted in the indices of the following commodity groups during the month:
a. Furnishings, household equipment and routine household maintenance, 1.9 percent from 2.1 percent;
b. Health, 2.6 percent from 2.7 percent;
c. Restaurants and accommodation services, 4.1 percent from 4.2 percent; and
d. Personal care, and miscellaneous goods and services, 2.9 percent from 3.2 percent.
In contrast, higher annual increments in April 2024 were observed in the indices of transport at 2.6 percent from 2.2 percent and recreation, sport and culture at 1.7 percent from 1.6 percent.
The indices of the rest of the commodity groups moved at their respective annual rates in March 2024. (Table 1)

Food inflation descends to 4.0 percent
Inflation of food descend to 4.0 percent this April 2024, recording a 0.7 percentage points decrease from its to 4.7 percent inflation in March 2024. The slowdown of food inflation was mainly brought by the slower year-on-year growth rate in the index of meat and other parts of slaughtered land animalas which decreased to negative 0.2 percent in April 2024 from 2.1 percent in March 2024. This was followed by the index of fruits and nuts which registered an annual decrease of 8.2 percent this month from 10.3 percent in March 2024, and the commodity groups flour, bread and other bakery products, pasta products, and other cereals and fish and other seafood which registered lower inflation with reduce from 4.1 percent from previous month to 3.3 percent in April 2024 and 1.4 percent in March to 1.0 percent this April 2024 on their inflation rate, respectively.

Meanwhile, the following seven commodity groups also exhibited higher inflation this month:

a) Rice, 16.4 percent;
b) Corn, 3.9 percent; and
c) Vegetables, tubers, plantains, cooking bananas and pulses, 5.3; and

On the other hand some commodity groups maintain its inflation this month:

a) Milk, other dairy products and eggs, 0.8 percent;
b) Oils and fats, 0-5.9 percent; and
c) Ready-made food and other food products n.e.c., 3.4 percent.

Purchasing Power of the Peso (PPP) sustains 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 April 2024, the PPP in NCR remains at 0.82, this is the fourth time that the PPP held on to its previous month’s level. The PPP in April 2023 was at 0.85. (Figure 3)

PACIANO B. DIZON
Regional Director