Starting February 2022, the Philippine Statistics Authority (PSA) released the rebased Consumer Price Index (CPI) for all income households to base year 2018, from base year 2012 as announced in the press release number 2022-01 dated 04 January 2022. The CPI series for all income households for January 2022 onwards will be 2018-based.

A. The Philippines

The Philippines’ headline inflation or overall inflation increased to 3.8 percent in April 2024 from 3.7 percent in March 2024. This brings the national average inflation from January to April 2024 at 3.4 percent. In April 2023, inflation rate was higher at 6.6 percent. (Table A)

B.    Central Visayas

1. Regional Inflation

Central Visayas remained its previous month headline inflation rate at 3.2 percent in April 2024. The regional average inflation rate from January to April 2024 stood at 2.9 percent. In April 2023, the inflation rate in the region was higher at 5.5    percent. (Table A and Figure 1)

C. City of Mandaue

1. Headline Inflation

Following the trend at the national level, inflation rate in Mandaue City also increased to 7.6 percent in April 2024 from 7.5 percent in March 2024. The city’s average inflation rate from January to April 2024 stood at 6.9 percent. While in April 2023, the inflation rate in the city was lower at 2.4    percent. (Table A and Figure 1)

1.1 Main Drivers to the Upward Trend of the Headline Inflation

The uptrend in the city’s headline inflation in April 2024 was primarily influenced by the higher year-on-year increase in the heavily-weighted housing, water, electricity, gas and other fuels at 17.2 percent during the month from 16.6 percent in March 2024. The faster annual growth rate of the transport index at 2.7 percent in April 2024 from 2.6 percent in the previous month also contributed to the uptrend of the headline inflation. (Table 3)

In addition, higher inflation rate was also noted in clothing and footwear at 0.4 percent during the month from 0.2 percent in March 2024. (Table 3)

On the contrary, lower inflation rates were observed in the following commodity groups during the month: 

a. Food and non-alcoholic beverages, 6.2 percent from 6.4 percent;
b. Alcoholic beverages and tobacco, 10.1 percent from 10.2 percent; 
c. Furnishings, household equipment and routine household maintenance, 3.4 percent from 3.5 percent;
d. Recreation, sport and culture, 5.0 percent from 5.1 percent; and
e. Personal care, and miscellaneous goods and services, 10.1 percent from 10.3 percent. (Table 3)

Moreover, the indices of the following commodity groups retained their previous month’s annual growth rates:

a. Health, 4.9 percent;
b. Information and communication, 0.1 percent;
c. Education services, 0.0 percent;
d. Restaurants and accommodation services, 0.9 percent; and 
e. Financial services, -0.4 percent. (Table 3)

1.2 Main Contributors to the Headline Inflation

The top three commodity groups contributing to the April 2024 headline inflation were the following:

a. Housing, water, electricity, gas and other fuels with 58.0 percent share or 4.4 percentage point;
b. Food and non-alcoholic beverages with 26.8 percent share or 2.0 percentage points; and 
c. Personal care, and miscellaneous goods and services with 5.1 percent share or 0.4 percentage point.

2. Food Inflation

Food inflation at the city level decelerated to 6.6 percent in April 2024 from 6.8 percent in March 2024. In April 2023, food inflation stood still at 5.6 percent. (Table 7)

2.1 Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in April 2024 was mainly brought by the faster annual decrease of 7.7 percent was observed in fish and seafood index from a 5.1 percent annual decline in March 2024. In addition, slower year-on-year increase in rice index at 16.5 percent in April 2024 from 17.9 percent in the previous month. (Table 5)

Milk, other dairy products and eggs index also recorded a slower increase with an inflation rate of 1.4 percent in April 2024 from 4.4 percent in the previous month; flour, bread and other bakery products, pasta products, and other cereals at 4.7 percent from 5.3 percent, and sugar, confectionery and desserts index recorded faster annual decrease of 4.7 percent during the month from a 2.9 percent annual decline in March 2024. (Table 5)

On the other hand, higher inflation rates were observed in the following food groups:

a. Corn, -17.9 percent from -21.2 percent;
b. Meat and other parts of slaughtered land animals, 10.3 percent from 9.9 percent;
c. Fruits and nuts, 11.8 percent from 11.1 percent;
d. Vegetables, tubers, plantains, cooking bananas and pulses, 16.3 percent from 6.0 percent; and
e. Ready-made food and other food products n.e.c., 8.3 percent from 7.4 percent. (Table 5)

Moreover, oils and fats food group retained its previous month’s inflation rate at 0.3 percent. (Table 5)

2.2 Main Contributors to the Food Inflation

Food inflation shared 26.2 percent or 2.0 percentage points to the overall inflation in April 2024. The top three food groups in terms of contribution to the food inflation during the month were the following:

a. Cereals and cereals products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 64.3 percent share or 4.2 percentage points;
b. Meat and other parts of slaughtered land animals, with 27.4 percent share or 1.8 percentage points; and
c. Vegetables, tubers, plantains, cooking bananas and pulses, with 13.3 percent share or 0.9 percentage points.

TECHNICAL NOTES

The Philippine Statistics Authority generates and announces the monthly Consumer Price Index (CPI) based on a nationwide survey of prices for a given basket of goods and services. Two important indicators, the inflation rate and purchasing power of the peso (PPP), are derived from the CPI which are important in monitoring price stability and the value of the country’s currency.  

The CPI is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

Retail Price is the price at which a commodity is sold for spot in small quantities for consumption.

Base Period/Base Year is the period, usually a year, at which the index number is set to 100. It is the reference point of the index number series.

Market Basket is a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.

Weight is a value attached to a commodity or ground of commodities to indicate the relative importance of that commodity or group of commodities in the market basket.

Inflation Rate is equivalent to a decline in the purchasing power of the peso. It is the change in the CPI over a specific period of time (usually a month or a year). That is, 

where: 
CPI₁ - is the CPI in the previous period 
CPI₂ - is the CPI in the current period

The Purchasing Power of the Peso (PPP) is a measure of the real value of the peso in a given period relative to a chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100. That is,

Headline Inflation is the rate of change in the weighted average prices of all goods and services in the CPI basket. 

Approved by:

(SGD)MELCHOR B. BAUTISTA
Chief Statistical Specialist