CHEAPER rice prices in the first three months of the year slowed the inflation experienced by the poorest 30 percent of the population, according to the Philippine Statistics Authority (PSA).
PSA data showed inflation for the Bottom 30 percent of the population slowed to 2.3 percent in the January-to-March period. This is the slowest since 2017 when inflation was at 2.1 percent in the same period.
In March, inflation for the poorest averaged 2.4 percent, slower than the 3.4 percent posted in March 2019. However, this was higher than the 2.1 percent posted in February 2020.
“The average inflation rate of the Bottom 30 percent of income households during the first quarter 2020 is at 2.3 percent, which is lower compared to the same period in 2019—average 4.3 percent. This is due to low inflation in the heavy weighted food group, particularly rice,” Claire Dennis S. Mapa Mapa told BusinessMirror over the weekend.
“For the month of March 2020, the inflation rate for this group of households is 2.4 percent compared to 2.1 percent in February 2020. The 0.3-percentage point increase is mainly due to increases in specific food items such as fish, eggs and fruits attributed to supply concerns because of the ECQ [enhanced community quarantine],” he explained.
However, Mapa said a clearer picture of the consumption of the poorest Filipinos during the ECQ may be drawn from the upcoming data that PSA is collecting.
Mapa said the PSA is currently conducting a consumer assessment survey related to Covid-19, and the data are being collected along with the April 2020 round of the Labor Force Survey (LFS).
“The inflation is just tracking prices. We will wait for the results of the April 2020 round of the Labor Force Survey and the rider questions on consumer assessment related to Covid 19. The data collection is still ongoing,” Mapa said.
March inflation for poorest
PSA data on the poorest Filipinos showed that in March, the increase in inflation was due to the 1.1-percent increase in the heavily-weighted food and non-alcoholic beverages index.
The PSA also observed higher annual increments were posted in the indices of health; and recreation and culture, both at 3.4 percent.
Data showed food inflation also increased to 1 percent in March 2020, higher than the 0.3 percent posted in February 2020 but slower than the 2.9 percent in March 2019.
Higher prices were also recorded in fish with 10.4 percent; Milk, cheese and egg, 3.8 percent; Oils and fats, 1.3 percent; Fruits, 8.6 percent; and Food products, not elsewhere classified, 9.3 percent.
In Metro Manila or the National Capital Region (NCR), prices increased 1.9 percent in March 2020, the same rate in February 2020 and lower at 2.9 percent in March 2019.
Prices in Areas Outside NCR (AONCR), meanwhile, increased 2.4 percent in March 2020. In the previous month, inflation in the area was recorded at 2.1 percent, and in the same month in 2019, 3.4 percent.