Inflation flat at 4.5% in April —PSA

Inflation or the rate of increase in the prices of goods and services posted a flat reading in April due to varying movements in the prices of commodities, the Philippine Statistics Authority (PSA) reported on Wednesday.

At a virtual press conference, PSA chief and National Statistician Claire Dennis Mapa said inflation clocked in at 4.5% in April, the same level posted in March but faster than 2.2% recorded in April 2020.

This brought the year-to-date inflation at 4.5%, still exceeding the government’s target band of 2% to 4%.

Last month’s figures also fell within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 4.2% to 5%.

“Ang magkakaibang paggalaw ng presyo sa mga commodity groups nitong Abril 2021 ay nagresulta sa magkaparehong antas ng inflation nitong Abril 2021 at Marso 2021,” Mapa said.

(The varying movements in the prices of commodity groups in April resulted in the same inflation rate as March’s.)

The major contributor for last month’s inflation print was Food and Alcoholic Beverages with an inflation of 4.8% and a 40.9% share in the overall consumer price index.

The food groups that contributed largely to the Food and Non-Alcoholic Beverages are the following:

Meat, such as pork, with 22.1% inflation
Fsh, such as galunggong, with 6.%
Other cereals, flour, cereal preparation, bread, pasta and other bakery products with 1.8% inflation

The second contributor to the overall inflation in April was Transport with 17.9% inflation and 32.1% share.

Tricycle fare with 48.4% inflation; petroleum and fuels with 32% inflation; and jeepney fare with 6.3% inflation are the major Transport inflation contributors.

Restaurant and Miscellaneous Goods and Services was the third major contributor in last month’s print with 3.4% inflation and a share of 9.5%.

Top contributors in the commodity group’s inflation last month were meals with 3.7% inflation; articles for personal hygiene, such as alcohol with 2.9% inflation; and barbershop services with 10.7% inflation.

Meanwhile, annual increases were higher in the indices of the following commodity groups in April:

• Housing, water, electricity, gas, and other fuels, 1.5%
• Furnishing, household equipment and routine maintenance of the house, 2.1%
• Health, 3.1%
• Transport, 17.9%
• Communication, 0.3%
• Restaurant and miscellaneous goods and services, 3.4%

On the other hand, inflation slowed down in the indices of food and non-alcoholic beverages at 4.8% and alcoholic beverages and tobacco at 12.%, according to the PSA.

“The rest of the commodity groups retained their respective previous month’s annual growth rates,” it said.

The Statistics agency said that annual rates went down during the month in the indices of rice and vegetables at -0.3% and -2.6%, respectively.

Moreover, annual hikes slowed down in the indices of other cereals, flour, cereal preparation, bread, pasta and other bakery products at 1.8%; milk, cheese and egg, 1.%; fruits, 0.3%; and food products not elsewhere classified, 0.5%. 

Annual rates picked up further in the indices of corn at 3.1%; meat, 22.1%; and fish, 6.0%. 

The indices of oils and fats; and sugar, jam, honey, chocolate and confectionery moved at their corresponding previous month’s annual growth rates of 3.9% and 0.3%.

Inflation in NCR

Inflation in the National Capital Region (NCR) tracked the country’s level as it also remained at its previous month’s annual rate of  3.7% in April.

But the inflation in the area compared to April 2020’s 1.2% was faster.

Higher annual increments were seen in the indices of clothing and footwear at 0.8%; transport, 19.7%; and restaurant and miscellaneous goods and services, 1.8%.

Annual increases eased in the indices of the following commodity groups:

• Food and non-alcoholic beverages, 4.9%
• Alcoholic beverages and tobacco, 10.3%
• Housing, water, electricity, gas, and other fuels, 0.2%
• Furnishing, household equipment and routine maintenance of the house, 0.5%

“The rest of the commodity groups retained their previous month’s annual growth rates,” the PSA said.

Inflation outside NCR

The same trend as the national level and Metro Manila was observed in areas outside NCR (AONCR) as inflation in the area at 4.7% during the month was the same annual rate recorded in March.

The PSA noted that mixed trends of inflation were observed among the regions in AONCR.

The highest inflation of 7.9% during the month was still observed in Region V or Bicol Region, while the lowest remained in Central Visayas at 1.9%.

Inflation for bottom 30%

Inflation rate felt by the bottom 30% income households slowed down to 4.9% in April, from 5.5% in March.

But it was faster compared to 2.9% posted in April 2020.

The index of recreation and culture continued to move downward as its annual rate declined by -0.2% during the month.

Moreover, slower annual increments were posted in the indices of the following commodity groups during the period:

• Food and non-alcoholic beverages, 3.9%
• Alcoholic beverages and tobacco, 13%
• Health, 2.6%
• Communication, 0.4%
• Restaurant and miscellaneous goods and services, 4.3%

—KBK, GMA News