Consumer Price Index in NCR has upticks to 121.9 percent

The Consumer Price Index (CPI) for the National Capital Region (NCR) experienced a slight uptick, rising by 0.5 percentage points from 121.4 percent in January 2024 to 121.9 percent in February 2024. Compared to February 2023, the CPI showed a year-on-year increase of 3.7 percentage points, climbing from 118.2 percent. Throughout this period, 
the NCR's CPI consistently remained below the Philippines' overall CPI, which reached 125.5 percent in February 2024, marking a 0.7 percentage point increase from the previous month’s index of 124.8 percent.

In February 2024, the CPI of 121.9 percent indicates that consumer prices in the NCR has risen by 21.9 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 121.9 in February 2024 by an average Filipino household in NCR. (Figure 1)

Inflation rate in NCR increases to 3.2 percent.

In February 2024, the inflation rate in NCR experienced a marginal uptick reaching 3.2 percent, compared to 2.8 percent in January 2024. This marks a 0.4 percentage point increase in inflation compared to the preceding month. In February 2023, the inflation rate in the region stood at 8.7 percent. (Figure 2)

Similarly, on a national scale, inflation in the Philippines saw a slight increase to 3.4 percent in February 2024 from 2.8 percent in January 2024. This upward trajectory in inflation was observed across thirteen (13) out of the seventeen regions. Region IV-A (CALABARZON) witnessed the most significant increase in its inflation rate, with a rise of 1.3 percentage points. This was followed by Region III (Central Luzon) and BARMM, each experiencing an increase of 1.1 percentage points, respectively.

Food and non-alcoholic beverages contribute to the acceleration of inflation within the NCR.

The Food and non-alcoholic beverages index made the most significant contribution to the increase in the inflation rate in NCR with a 1.4 percentage points increase from its 1.9 percent inflation rate in January 2024 to reach 3.3 percent this February. The increase in the inflation rate in food and non-alcoholic beverages contributed to around 74.2 percent to the overall uptrend in inflation for the month.  The index of transport commodity group came next as the major contributor to higher inflation in the region as it accelerates to 1.3 percent this February from 0.2 percent inflation rate in January. 
This was followed by the index of housing, water, electricity, gas, and other fuels which registered an increase of 0.2 percentage point from its 3.3 percent inflation in January 2024 to reach 3.5 percent in February 2024.

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

1. Clothing and footwear, 2.0 percent;

2. Furnishings, household equipment and routine household maintenance, 2.0 percent;

3. Information and communication, 0.1 percent;

4. Recreation, sport and culture, 1.5 percent;

5. Restaurant and accommodation services, 4.2 percent; and

6. Personal care, and miscellaneous goods and services, 3.2 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 3.5 percent

Inflation of food bounced to 3.5 percent this February 2024, recording a 1.7 percentage points increase from its to 1.8 percent inflation in January 2024.  The speed up of food inflation was mainly brought by the higher year-on-year growth rate in the index of vegetables, tubers, plantains, cooking bananas and pulses which increased to negative 8.3 percent in February 2024 from negative 20.2 percent in January 2024.  This was followed by the index of meat and other parts of slaughtered land animals which registered an annual increase of 0.5 percent this month from negative 2.0 percent in January 2024, and the commodity groups of rice and corn which registered higher inflation with upticks of 0.9 percent and 0.5 percent on their inflation rate respectively.

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

• Flour, bread and other bakery products, pasta products, and other cereals, 4.7 percent;

• Fish and other seafood, 2.9 percent;

• Milk, other dairy products and eggs, 1.6 percent;

• Oils and fats, -5.8 percent;

• Fruits and nuts, 13.2 percent

• Sugar, confectionery and desserts, 2.0 percent; and

• Ready-made food and other food products n.e.c., 3.9 percent

Purchasing Power of the Peso (PPP) 

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 February 2024, the PPP in NCR remains at 0.82, the same as the previous month’s level. The PPP in February 2023 was at 0.85. (Figure 3)

PACIANO B. DIZON
Regional Director