Food inflation slackens to -0.1% in May 2021

The monthly rate of change on food prices slackened to –1.0 percent in May 2021 from 0.4 percent in April due to the slower price movements in some commodity groups, according to the Survey of Retail Prices of Commodities of the Philippine Statistics Authority.

Of the 11 food commodity groups, 5 exhibited slower rates while 3 slightly inched up but remained in the negative level relative to its monthly inflation a month ago.

Only milk, cheese, and eggs increased by 0.1 percentage points, the data indicated.

The five food commodity groups with slower rates in May 2021 relative to last month’s inflation are the following:

• Bread and Cereals, –2.3% from 0.6%
• Meat, 1.9% from 5.7%
• Fish, 0.3% from 0.5%
• Oils and fats, 0.1% from 0.2%
• Sugar, Jam, Honey, Chocolate and Confectionery, 0.5% from 0.6%

The three food commodity items that moved up prices but still at a slower pace were:

• Fruits, –1.6% in May from –2.3% in April 2021
• Vegetables, –3.8% from –7.1%, and
• Food Products N.E.C., -2.3% from –3.1%

In totality, food and non-alcoholic beverages posted decelerating monthly inflation from 0.3 percent in April to –0.9 percent in May 2021. Food commodity groups caused the drag after dropping to –1.0 percent from 0.4 percent in April 2021 while inflation of non-alcoholic beverages remained steady in April and May 2021.

Moreover, the “Annual inflation or the rate of change in the CPI over the same month a year ago,  slightly moved a bit faster to -0.1%  in May 2021 from -0.5 percent in April 2021. Inflation in April was the slowest rate in 2021 while the fastest was noted at 2.0 percent in February. When compared to 2020, October inflation at -0.8 percent was the slowest rate, while the fastest was seen in April at 5.1 percent,” Provincial Statistics Officer Nelida B. Losare said.

Among the food groups, prices of 4 commodity items increased in May 2021 against May 2020 – Meat, 13.8% from 11.1%; Fish, 6.7% from 2.4%; Milk, Cheese and Eggs, 2.8% from 2.6%, and Bread and Cereals, –5.7% from –5.9%. (See Table 2)

The slower pace in the annual rate of change on four food commodity items was noted in May 2021 – Other cereals, flour, cereal preparation, bread, pasta, and other bakery products, –0.2% from 1.2%; Vegetables, –11.8% from –5.9%; Sugar, Jam, Honey, Chocolate and Confectionery, –0.9% from –1.0%; and Products N.E.C., –4.6% from –2.8%

The annual rate of change on the prices of Food and non-alcoholic beverages recorded a bit faster in May 2021 at –0.1 percent from –0.5 percent in April pushed by Food commodity groups which slightly inched up to –0.2 percent from –0.6 percent in April 2021.