Table A. Year-on-Year Inflation Rates
for the Bottom 30% Income Households, All Items
In Percent
(2018=100)

A. The Philippines

The country’s inflation rate for the bottom 30% income households slowed down to 2.5 percent in December 2024 from 2.9 percent in November 2024. This brings the average inflation from January to December 2024 for this income group to 4.2 percent. In December 2023, the inflation rate was posted at 5.0 percent. (Table A) 

B. Central Visayas

1. Regional Inflation

Following the trend at the national level, inflation rate for the bottom 30% income households in Central Visayas slowed down to 2.5 percent in December 2024 from 3.1 percent in November 2024. The average inflation rate for the region from January to December 2024 was recorded at 4.1 percent.  In December 2023, inflation rate in the region was higher which posted at 4.4 percent. (Table A)

C. City of Lapu-Lapu

1. Headline Inflation

The headline inflation rate for the bottom 30% income households in the City of Lapu-Lapu slowed down to 1.5 percent in December 2024 from 2.5 percent in November 2024. This brings the average inflation rate from January to December 2024 for this income group to 6.0 percent.  In December 2023, the inflation rate was higher at 7.1 percent. 
(Table A and Figure 1)

1.1 Main Drivers to the Downward Trend of Headline Inflation in the City of Lapu-Lapu

The main driver to the downtrend of headline inflation in December 2024 for bottom 30% income households was mainly brought by the faster year-on-year decrease of food and non-alcoholic beverages index at 0.1 percent from 2.5 percent annual increase in the previous month. (Table 3)

Furthermore, commodity groups that posted slower annual increments were as follows:

a. Personal care, miscellaneous goods and services, 3.4 percent from 3.7 percent;
b. Furnishings, household equipment and routine household maintenance, 1.2 percent from 1.7 percent;
c. Alcoholic beverages and tobacco, 2.4 percent from 2.5 percent; and
d. Recreation, sport and culture, 9.5 percent from 9.8 percent.

On the other hand, housing, water, electricity, gas and other fuels recorded a faster annual increase at 5.6 percent during the month from 4.8 percent in the previous month. Transport index posted a slower annual decrease at 0.4 percent in December 2024 from annual drop of 1.5 percent in the previous month.

Commodity groups that retained their previous month’s inflation rates were the following:

a. Clothing and footwear, 2.8 percent;
b. Health, 2.5 percent;
c. Information and communication, 0.2 percent;
d. Education services, 2.4 percent;
e. Restaurants and accommodation services, 1.1 percent; and
f. Financial services, 0.0 percent. (Table 3)

1.2 Main Contributors to the Headline Inflation

The following commodity groups were the top three contributors to the December 2024 overall inflation for the bottom 30% income households in the City of Lapu-Lapu:

a) Housing, water, electricity, gas and other fuels with 70.9 percent share or 1.1 percentage points;   b) Personal care, and miscellaneous goods and services with 12.0 percent share or 0.2 percentage point; and
c) Restaurants and accommodation services with 8.0 percent share or 0.1 percentage point.

2. Food Inflation

Food inflation rate for the bottom 30% income households in the City of Lapu-Lapu posted a faster annual decrease at 0.3 percent in December 2024 from 2.7 percent annual increase in November 2024. In December 2023, food inflation rate was higher which posted at 6.0 percent. (Table 7)

2.1    Main Drivers to the Downtrend of Food Inflation

The downtrend of food inflation during the month were primarily driven by the faster year-on-year decreases in the indices of rice at 5.3 percent, and vegetables, tubers, plantains, cooking bananas and pulses at 13.0 percent during the month from their respective inflation rates at 1.5 percent annual decline and 1.2 percent annual increase in the previous month. Corn index with slower annual increase at 23.1 percent during the month from 50.0 percent in the previous month also contributed to the downtrend. (Table 5)

In addition, slower annual increments were also recorded in the indices of meat and other parts of slaughtered land animals at 1.1 percent, milk, other dairy products and eggs at 0.6 percent, and ready-made food and other food products not elsewhere classified at 5.4 percent during the month from their respective food inflation rates at 3.3 percent, 2.1 percent, and 5.9 percent in the previous month. Faster annual decrease was recorded in oils and fats food group at 0.1 percent during the month from no price movement in the previous month.

In contrast, faster annual increments were recorded in the indices of fish and other seafood at 2.7 percent, and fruits and nuts at 12.6 percent during the month from their respective inflation rates at 1.6 percent, and 8.9 percent in the previous month. Sugar, confectionery and desserts posted a slower annual decrease at 3.1 percent in December 2024 from annual drop of 3.3 percent in November 2024.

While, flour, bread and other bakery products, pasta products and other cereals retained its previous month’s inflation at 1.0 percent.

2.2 Main Contributors to the Food Inflation

Food inflation contributed -6.1 percent share or -0.1 percentage point to the December 2024 overall inflation for this particular income group.

Among the food groups, the main contributors to the food inflation during the month were the following:

a. Vegetables, tubers, plantains, cooking bananas and pulses with 1168.5 percent share or  -3.5 percentage point;
b. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals with 713.4 percent share or -2.1 percentage point; and
c. Sugar, confectionery and desserts with 91.0 percent share or - 0.3 percentage point.

Table B. Year-on-Year Inflation Rates for the Bottom 30% Income Households in the City of Lapu-Lapu, All Items
In Percent
January 2019 – December 2024
(2018=100)

Approved by:

MELCHOR B. BAUTISTA
Chief Statistical Specialist

MJG/KST