October 2024 Siquijor rate of inflation eased further to 1.6 percent. 

A. Philippines

The Philippines’ headline inflation or overall inflation increased to 2.3 percent in October 2024 from 1.9 percent in September 2024. This brings the national average inflation rate from January to October 2024 to 3.3 percent. In October 2023, the inflation rate was higher at 4.9 percent.  (Table A)

The uptrend in the overall inflation in October 2024 was primarily influenced by the faster annual increment in the heavily-weighted food and non-alcoholic beverages at 2.9 percent during the month from 1.4 percent in September 2024. Also contributing to the uptrend was transport with a slower year-on-year decrease of 2.1 percent during the month from a 2.4 percent annual drop in September 2024.
 

B. Central Visayas

Inflation in Central Visayas increased to 2.9 percent in October 2024 from 2.1 percent in September 2024. This brings the regional year to date inflation at 3.3 percent. In October 2023, inflation rate was higher at 6.4 percent.

For the month of October 2024, three (3) provinces in Region VII recorded an increase in inflation rate while only one (1) province recorded a decrease in inflation rate. Bohol, Cebu and Negros Oriental recorded an increase in inflation rate to 2.9 percent, 2.8 percent and 2.0 percent from 1.6 percent, 0.7 percent and 1.5 percent, respectively. In contrast, Siquijor province recorded a decrease in inflation rate from 2.6 percent to 1.6 percent inflation rate.

C. Province of Siquijor

1. Headline Inflation

The headline inflation at the provincial level in October 2024 further slows down at 1.6 percent. This brings the year-to-date inflation of the province for 2024 to 3.5 percent. Comparing to the inflation in October 2023, Siquijor’s inflation rate was still higher at 6.4 percent. (Table A & B and Figure 1)
 

1.1 Main Drivers to the Downward Trend of the Inflation

The downward trend of the headline inflation for the month of October was primarily brought by the decrease in the index of the heavily weighted Food and Non-alcoholic beverages which recorded an inflation rate of 2.5 percent in October from 4.2 percent in September 2024. This was followed by the index of Housing, Water, Electricity, Gas and Other Fuels with 3.0 percent from 4.4 percent inflation rate in September 2024.

Additionally, the following commodity groups recorded a decrease in inflation rate compared to its previous months rate:

    a. Clothing and Footwear at 1.8 percent from 2.0 percent;
    b. Furnishings, household equipment and routine household maintenance at 0.7 percent from 1.1 percent;
    c. Transport at -5.8 percent from -5.6 percent;
    d. Recreation, Sport and Culture at 1.6 percent from 1.8 percent;
   e. Lastly, Personal Care, and miscellaneous goods and services at 4.6 percent from 5.1 percent. (Table 3 and 4)

In contrast, two commodity group recorded an increase in inflation rate compared to its previous months rate:
 

    f. Alcoholic beverages and tobacco at 2.4 percent from 2.2 percent;
    g. Health at 2.5 percent from 2.4 percent. (Table 3 and 4)

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

    h. Information and Communication at 0.2 percent;
    i. Education services at 0.5;
    j. Restaurants and Accommodation Services at 1.3;
    k. 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 October 2024 overall inflation of 1.6 percent in the province were the following:

    a. Food and Non-alcoholic beverages with 64.9 percent share or 1.04 percentage points;
    b. Housing, water, electricity, gas and other fuels with 38.2 percent share or 0.61 percentage points; and
   c. Personal Care, and miscellaneous goods and services with 12.6 percent share or 0.20 percentage point.
 

2. Food Inflation

The food inflation at the provincial level decreased to 2.2 percent in October from 4.1 percent in September 2024. In October 2023, food inflation was higher at 9.8 percent. (Table 6 & 7)

2.1 Main Drivers to the Downward Trend of the Food Inflation

The deceleration of food inflation in the province in October2024 was primarily brought by the decrease of the index of Fish and other seafood at -2.8 percent from 2.6 percent, followed by Vegetable, tubers, plantains, cooking bananas and pulses at -2.7 percent from 2.2 percent. Thirdly, Meat and other parts of slaughtered land animals at -1.5 percent from -0.9 percent in September 2024.

Additionally, the following food groups recorded a slower index compared to its previous month:

   a. Corn at 15.6 percent from 22.6 percent;
   b. Flour, Bread and Other Bakery Products, Pasta Products and Other Cereals at 3.0 percent from 3.5 percent;
   c. Milk, other dairy products and eggs at 1.8 percent from 2.6 percent;
   d. Ready-made food and other food products at 7.1 percent from 8.7 percent. (Table 5)
 

Moreover, the following food groups posted an increase in indices compared to the previous month:

   e. Rice at 4.7 percent from 1.5 percent;
   f. Fruits and Nuts at 15.0 percent from 12.5 percent;
   g. Lastly, Sugar, confectionery and desserts at -4.4 percent from -6.8 percent. (Table 5)

Furthermore, only the index of Oils and fats remained constant at 0.1 percent rate. (Table 5)

2.2 Main Contributors to the Food Inflation

In October 2024, food shared at the provincial level 55.8 percent or 0.89 percentage points to the overall inflation. The main food items contributing to the October 2024 overall food inflation were the following:

    a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 94.2 percent share or 2.07 percentage points; 
    b. Fruits and nuts with 28.8 percent share or 0.63 percentage points; and
    c. Fish and Other Seafood with 9.5 percent share or 0.21 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.
 

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