INFLATION sustained its pace in April from the preceding month even as core inflation eased to a five-month low, the government reported this morning
Preliminary data from the Philippine Statistics Authority showed the consumer price index rose 4.5{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} year on year last month, unchanged from March, but faster than April 2020’s 2.2{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}.
April headline inflation was lower than the median 4.7{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} in an analyst poll BusinessWorld conducted late last week and settled within the Bangko Sentral ng Pilipinas’ (BSP) own 4.2-5{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} estimate.
Year to date, inflation averaged at 4.5{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}, slightly above the BSP’s 2-4{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} target band, as well as its inflation forecast of 4.2{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} for the year.
Inflation eased in the indices of food and non-alcoholic beverages at 4.8{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} in April from 5.8{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} in March; and alcoholic beverages and tobacco at 12{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} from 12.1{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}.
On the other hand, annual increases were noted in housing, water, electricity, gas, and other fuels (1.5{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} from 0.9{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}); furnishing, household equipment and routine maintenance of the house (2.1{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} from 1.9{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}); health (3.1{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} from 2.9{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}); transport (17.9{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} from 13.8{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}); communication (0.3{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} from 0.2{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}); and restaurant and miscellaneous goods and services (3.4{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} from 3.1{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}).
The following indices saw steady inflation compared with the previous month: clothing and footwear (1.6{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}); recreation and culture (-0.6{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}); and education (1.1{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}).
Food inflation slowed to 5{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} in April from 6.2{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} in March, albeit still faster than last year’s 3.4{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07}.
Core inflation, which is used in determining underlying price trends by stripping out volatile prices of food and fuel, stood at 3.3{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} in April, easing from 3.5{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} the preceding month. Still, this was higher than the 2.9{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} core inflation in April 2020.
Core inflation that month was the slowest since the 3.2{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} print in November 2020, as well as matching the 3.3{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} figure recorded in December 2020.
So far, core inflation averaged 3.4{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} this year compared with the 3.1{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} in 2020’s comparable four months.
Meanwhile, the inflation rate for the bottom 30{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} of income households stood at 4.9{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} in April, slower than the 5.5{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} rate recorded in the previous month, but still faster than the 2.9{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} in April 2020.
The inflation rate for the bottom 30{7cf23ffd9f893b42e5168467dbdff3dd8c8539e14232c919813e000f7f93ca07} takes into account the spending patterns of this income segment. Thus, its consumer price index differs from that of the average household with the former assigning heavier weights on necessities. — Lourdes O. Pilar