March 2024 Siquijor rate of inflation decreased by 0.2 percent

A. Philippines

The Philippines headline inflation or overall inflation increased to 3.7 percent in March 2024 from 3.4 percent in February 2024. This brings the national average inflation from January to March at 3.3 percent. In March 2023, inflation was higher at 7.6 percent. (Table A)

The main drivers to the upward trend of the headline inflation were primarily influenced by the higher year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 5.6 percent during the month from 4.6 percent in the previous month. The annual increase of transport at 2.1 percent during the month from 1.2 percent in February 2024 also contributed to the uptrend. Restaurants and accommodation services also contributed to the increase at 5.6 percent this month from 5.3 percent in the previous month.

B. Central Visayas

Inflation in Central Visayas accelerated further to 3.2 percent in March 2024 from 2.7 percent in February 2024. This brings the regional year to date inflation at 2.8 percent. In March 2023, inflation was higher at 6.6 percent.

Relative to their February 2024 inflation rates, two provinces posted higher inflation rates in March 2024. For Cebu it posted a 0.3 percent inflation rate in March from -0.2 percent in February 2024. Negros Oriental also posted an increase in inflation rate at 5.8 percent in March 2024 from 4.5 in February 2024. Meanwhile Bohol and Siquijor provinces showed a decrease in inflation rate from 4.0 percent in February to 3.2 percent in March and 4.0 percent in February to 3.8 percent in March, respectively. 

C. Province of Siquijor

1. Headline Inflation

Contrary to the trend of the national level, the headline inflation at the provincial level in March 2024 showed a decrease at 3.8 percent from 4.0 percent in February 2024. This is lower by -0.7 percent from the previous month’s record. This brings the year-to-date inflation of the province for 2024 to 3.8 percent. Comparing to the inflation in March 2023, Siquijor’s inflation rate was still higher at 10.1 percent. (Table A & B and Figure 1)

1.1 Main Drivers to the Downward Trend of the Inflation

The downtrend of the overall inflation in the province was mainly due to the decrease of the year-on-year inflation rate of transport at 1.8 percent during the month from 4.8 percent in February 2024. The clothing and footwear at 3.6 percent during the month from 4.3 percent in February 2024, also contributed to the downtrend. This was followed by personal care, and miscellaneous goods and services at 5.4 percent during the month from 5.8 percent in February 2024. (Table 3 and 4)

Additionally, the following commodity groups also recorded a decrease in inflation rate:
    a. Alcoholic beverages and tobacco at 5.4 from 5.8 percent;
    b. Recreation, sport and culture at 2.3 from 2.6 percent. (Table 3 and 4)

Moreover, despite the decrease in inflation rate for March 2024, indices of the following commodity groups during the month showed an increase in its inflation rate:

    c. Food and non-alcoholic beverages at 4.2 percent from 3.9 percent;
    d. Health at 3.7 percent from 2.6 percent;

Furthermore, indices of the following commodity groups in the province retained its previous month’s records:

    e. Housing, Water, electricity, gas and other fuels at 5.6 percent;
    f. Furnishings, household equipment and routine household maintenance at 1.4 percent;
    g. Information and communication at 0.0 percent;
    h. Education services at .01 percent;
    i. Restaurants and accommodation services at .01 percent;
    j. Financial services at -0.1 percent. (Table 3 and 4)

1.2 Main Contributors to the Headline Inflation

The top three main contributors to the March 2024 overall inflation of 3.8 percent in the province were the following:

     a. Food and Non-alcoholic beverages with 45.6 percent share or 1.73 percentage points;
   b. Housing, water, electricity, gas and other fuels with 29.9 percent share or 1.14 percentage points; and
    c. Personal Care and miscellaneous goods and services with 6.2 percent share or 0.24 percentage point.

2. Food Inflation

Like the trend at the national level, the food inflation at the provincial level also increased to 4.1 percent in March from 3.5 percent in February 2024. In March 2023, food inflation was higher at 12.8 percent. (Table 6 & 7)

2.1 Main Drivers to the Upward Trend of the Food Inflation

The acceleration of food inflation in the province in March 2024 was primarily brought by the annual increment of the indices in vegetables, tubers, plantains, cooking bananas and pulses at 2.4 percent during the month from -5.4 percent in February 2024. This was followed by fruits and nuts at 3.5 percent during the month from -4.2 percent in February 2024. Cereals and cereal products which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, also increased to 12.7 percent from 12.6 percent in February 2024. (Table 5)

Additionally, an increase in inflation rate for sugar, confectionery and desserts were recorded at -4.2 percent during the month from -5.4 percent in February 2024. (Table 5)

Moreover, the following food groups posted a decrease in indices compared to the previous month:

    a. Fish and other seafood at -3.2 percent from 0.5 percent;
    b. Milk, other dairy products and eggs at 4.8 percent from 6.4 percent;
    c. Oils and fats at 1.6 percent from 1.7 percent. (Table 5)

Furthermore, indices of the following food groups retained its inflation rate from the previous month:

    d. Meat and other parts of slaughtered land animals at -0.7 percent;
    e. ready-made food and other food products at 4.2 percent. (Table 5)

2.2 Main Contributors to the Food Inflation

In March 2024, food shared at the provincial level 40.5 percent or 1.54 percentage points to the overall inflation. The main food items contributing to the March 2024 overall food inflation were the following:

    a. Cereals and cereal products with 96.8 percent share or 3.97 percentage points; 
    b. Milk, other dairy products and eggs with 7.1 percent share or 0.29 percentage points; and
  c. Vegetables, tubers, plantains, cooking bananas and pulses with 4.5 percent share or 0.19 percentage point.

TECHNICAL NOTES

Consumer Price Index (CPI)

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.

Uses of CPI

    • The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso.  It is a major statistical series used for economic analysis and as monitoring indicator of the government economic policy.
     • Measures the composite change in the consumer prices in various commodities overtime.

Computation of CPI

The computation of CPI involves consideration of the following important points:

    a. Base Period – The reference date or base period is the benchmark or reference date or period at which the index is taken as equal to 100.
    b. Market Basket – A sample of the thousands of varieties of goods purchased for consumption and the services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers.
   c. Weighting System – The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.
  d. Formula – The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2018) weights.
   e. Geographic Coverage – CPI values are computed at the national, regional, and provincial levels, and or selected cities.

Inflation Rate

The inflation rate is the annual rate of change, or the year-on-year change of CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of money.

***Statistical tables in excel file are provided as an attachment of this release.

Approved by:

(SGD.) JOSELITO C. MAGHANOY
(Supervising Statistical Specialist)
Officer-in-Charge