Inflation rate in the Philippines rose to 5.4% in May 2022
The Philippine Statistics Authority (PSA) announced a 5.4% inflation rate in May 2022. This was the highest recorded inflation since December 2018.
Most of Overseas Filipino Workers (OFWs) are breadwinners of their families back home. In Hong Kong, for the monthly salary of HK$4,630, most of the hard-earned money was sent back to their loved ones for food, education, bills, medicines, etc.
The PSA reported on their website the latest inflation rate in the Philippines (June 7). The inflation rate is the rate at which prices increase over time, resulting in a fall in the purchasing value of money.
Undersecretary Dennis S. Mapa, the author of the report published on the PSA website, reported that the Philippines rose further from 4.9 percent in April 2022 to 5.4 percent in May 2022. In May of the previous year, inflation was lower at 4.1 percent.
The current acceleration in the country’s inflation rate in May 2022 was primarily due to the higher annual growths in food and non-alcoholic beverages (4.9%), and transport (14.6%).
The following commodity groups also contributed to the upward trend of the headline inflation during the month:
a.Alcoholic beverages and tobacco, 6.8 percent;
b. Clothing and footwear, 2.1 percent;
c. Recreation, sport and culture, 1.7 and
d. Personal care, and miscellaneous goods and services, 2.5 percent.
The uptick in the food inflation was primarily influenced by the double-digit annual growths in the vegetables, tubers, plantains, cooking bananas, and pulses index at 15.2 percent, and oils and fats index at 13.6 percent. In addition, higher annual increments were recorded in the following food groups:
a. Flour, bread, and other bakery products, pasta products, and other cereals, 4.8 percent;
b. Meat and other parts of slaughtered land animals, 5.4 percent;
c. Fish and other seafood, 6.2 percent;
d. Milk, other dairy products, and eggs, 1.5 percent;
e. Sugar, confectionery, and desserts, 8.7 percent; and
f Ready-made food and other food products, n.e.c, 3.5 percent.
The indices for rice and corn exhibited lower annual increases of 1.5 percent and 24.4 percent, respectively, while fruits and nuts index declined during the month at an annual rate of -2.4 percent.
National Capital Region (NCR)
Inflation in NCR, likewise, increased further to 4.7 percent in May 2022, from 4.4 percent in April 2022. In May 2021, inflation in the region was observed at 2.6 percent. (Tables A and 5)
The higher inflation in the area was mainly due to the higher annual increase in the food and non-alcoholic beverages index at 4.6 percent in May 2022, from 3.4 percent in the previous month. Also, contributing largely to the uptrend of inflation in NCR was transport with an inflation rate of 13.8 percent in May 2022, from 12.3 percent in the previous month.
Annual hikes were likewise higher in the indices of the following commodity groups:
a. Alcoholic beverages and tobacco, 6.5 percent;
b. Clothing and footwear, 1.2 percent;
c. Health, 1.9 percent;
d. Recreation, sport, and culture, 1.0 percent;
e. Restaurants and accommodation services, 3.3 percent; and
f. Personal care, and miscellaneous goods and services, 2.2 percent.
On the other hand, annual increases slowed down in the indices of housing, water, electricity, gas and other fuels at 5.2 percent; furnishing, household equipment, and routine household maintenance, 2.6 percent; and information and communication, 0.4 percent.
The indices of the rest of the commodity groups either retained their previous month’s rates or had zero percent annual growth during the month.
Areas Outside NCR (AONCR)
Following the trend of the Philippines and NCR, inflation in AONCR was higher at 5.5 percent in May 2022, from 5.1 percent in April 2022. Inflation in AONCR in May 2021 stood at 4.5 percent.
The uptrend of inflation in AONCR in May 2022 was also mainly brought about by the higher inflation for food and non-alcoholic beverages at 4.9 percent, from 3.8 percent in the previous month. This was followed by transport with an inflation of 14.7 percent during the month, from 13.2 percent in April 2022.
In addition, the following commodity groups contributed to the increase in the inflation rate in AONCR:
a. Alcoholic beverages and tobacco, 6.8 percent;
b. Clothing and footwear, 2.2. percent
c. Furnishing, household equipment, and routine household maintenance, 2.5 percent;
d. Recreation, sport and culture, 1.9 percent; and
e. Personal care, and miscellaneous goods and services, 2.6 percent.
However, lower annual growths were recorded in the indices of housing, water electricity, gas, and other fuels at 7.0 percent; health, 2.5 percent; and restaurants and accommodation services at 2.6 percent. The rest of the commodity groups retained their previous month’s annual rates.
Except for Central Visayas and Northern Mindanao, all regions in AONCR had higher inflation in May 2022. The highest inflation during the month remained in the Cordillera Administrative Region (CAR) at 6.9 percent, while the lowest was still in Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) at 2.4 percent.
Note: CPIs and inflation rates by province and selected city are posted on the PSA website (http://openstat.psa.gov.ph/).