PANGASINAN

1.   Headline Inflation

The inflation rate in the Philippines declined to 7.6 percent in March 2023 from 8.6 percent in February. The inflation rate of the country in March 2022 was posted at 4.0 percent (see Table A). The average inflation in the country this year was posted at 8.3 percent.

Similarly, the Ilocos Region recorded a weakening in inflation at 6.7 percent in March 2023, which was lower than that in February at 8.3 percent. The inflation rate of the region in March 2022 was posted at 4.6 percent (see Table A). The average inflation in the region this year was posted at 8.1 percent.

The headline inflation rate in Pangasinan dropped to 7.7 percent in March 2023 from 9.3 percent in February 2023 (see Figure 1). The inflation rate in the province in March 2022 was posted at 4.0 percent. The average inflation in the province this year was posted at 9.1 percent (see Table A).

1.1 Main Drivers of the Downward Trend of Headline Inflation

The province’s inflation rate in March 2023 was mainly brought about by a lower year-on-year growth rate in the index of Food and Non-Alcoholic Beverages at 10.2 percent from 11.1 percent in February (see Table C). Also contributing to the weakening inflation rate of the province during the month were the decreased inflation rates in the following commodities:

a.   Health, 9.0 percent;

b.   Restaurants and Accommodation, 6.7 percent;

c.   Housing, Water, Electricity, Gas, and Others, 5.3 percent; and

d.   Transport, 2.0 percent;

In contrast, higher year-on-year increases were seen in the indices of the following commodities:

a.   Furnishings, Household Maintenance, 13.3 percent;

b.   Personal Care and Miscellaneous Goods, 8.9 percent;

c.   Clothing and Footwear, 7.4 percent; and

d.   Recreation, Sports, and Culture, 6.1 percent.

The rest of the commodities retained their previous month’s inflation rates.

1.   Food Inflation

The inflation rate at the provincial level of Food and Non-Alcoholic Beverages in March 2023 was reported at 10.2 percent, which was lower than 11.1 percent in February. The inflation rate of this commodity group was lower at 1.2 percent in February 2022 (see Table D).

2.1 Main Drivers of the Downward Trend of Food Inflation

The highest inflation for sugar, confectionery, and desserts at 41.5 percent influenced the downward trend of food inflation in March 2023. In addition, slower annual growth rates compared to that in the previous month were also observed in the following food groups:

a.   Vegetables, Tubers, etc., 36.5 percent;

b.   Oils and Fats, 18.5 percent;

c.   Rice, 4.0 percent; and

d.   Meat of Slaughtered Land Animals, (0.3) percent.

Meanwhile, the following food groups showed an increase in their inflation:

a.   Milk, Other Dairy Products, and Eggs, 14.3 percent;

b.   Fish and Other Seafood, 13.5 percent;

c.   Fruits and Nuts, 11.8 percent;

d.   Flour, Bread, Pasta, and Others, 11.5 percent;

e.   Ready-made Foods, etc., 6.3 percent; and

f.     Corn, (18.5) percent.

Note: CPIs and inflation rates by province are posted on the PSA website (https://openstat.psa.gov.ph/).

SGD. EDGAR M. NORBERTE 
Chief Statistical Specialist, PSO Pangasinan