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.

Table A. Year-on-Year Inflation Rates, All Items

In Percent
(2018=100)

Source: Philippine Statistics Authority

*Year-on-year change of CPI for January to February 2024 vs. 2023

Source: Philippine Statistics Authority

A. the Philippines

The Philippines’ headline inflation or the overall inflation increased to 3.4 percent in February 2024 from 2.8 percent in January 2024. This brings the national average inflation from January 2024 to February 2024 at 3.1 percent. In February 2023, inflation rate was higher at 8.6 percent.  (Table A)

B. Central Visayas

Regional Inflation

Following the trend at the national level, inflation rate in Central Visayas also accelerated to 2.7 percent in February 2024 from 2.5 percent in January 2024. The region’s average inflation from January to February 2024 stood at 2.6 percent. In February 2023, the inflation rate in the region was higher which recorded at 7.4 percent. (Table A)

C. Province of Cebu

The headline inflation rate in the province of Cebu accelerated to -0.2 percent in February 2024 from -0.4 percent in January 2024. This brings the province’s average inflation from January to February 2024 at -0.3 percent.  In February 2023, the inflation rate was higher which recorded at 7.5 percent. (Table A and Figure 1)

1.1    Main Drivers to the Upward Trend of Headline Inflation in the Province of Cebu

The uptrend of the headline inflation in February 2024 was primarily influenced by the increase in the heavily weighted food and non-alcoholic beverages at -0.2 percent during the month from -1.2 percent in January 2024. This was followed by transport commodity group at 1.2 percent in February 2024 from 0.8 percent in January 2024.

Alcoholic beverages and tobacco index at 10.9 percent during the month from 10.3 percent in January 2024 also contributed to the uptrend of the headline inflation in the province. Moreover, higher inflation rate was also noted in recreation, sport and culture at 1.4 percent during the month from 1.1 percent in the previous month.

On the other hand, lower inflation rates were noted in the commodity groups of housing, water, electricity, gas and other fuels at -5.0 percent from -3.9 percent in January 2024; and health at  5.8 percent during the month from 6.2 percent in the previous month.

The indices of commodity groups that retained their previous month’s inflation were as follows:

a.    Clothing and footwear, 0.7 percent;

b.    Furnishings, household equipment and routine household maintenance, 2.9 percent;

c.    Information and communication, 0.4 percent;

d.    Education services, 0.5 percent;

e.    Restaurants and accommodation services, 2.7 percent;

f.    Financial services, 0.0 percent; and

g.    Personal care, miscellaneous goods and services, 3.2 percent. (Table 3)

1.2    Main Contributors to the Headline Inflation

The top two commodity groups that contributed to the February 2024 headline inflation were the following:

a.    Housing, water, electricity, gas and other fuels with 769.3 percent share or -1.5 percentage point; and
b.    Food and non-alcoholic beverages with 57.9 percent share or -0.1 percentage point.

2. Food Inflation

Food inflation in the province of Cebu rose at -0.5 percent in February 2024 from -1.6 percent in January 2024. In February 2023, food inflation was higher at 6.9 percent. (Table 7)

2.1    Main Drivers to the Uptrend of Food Inflation

The acceleration of food inflation in the province was primarily influenced by corn food group at -22.4 percent in February 2024 from -25.0 percent in January 2024.  Meat and other parts of slaughtered land animals at 12.5 percent during the month from 10.3 percent in the previous month. Vegetables, tubers, plantains, cooking bananas and pulses at -22.3 percent from -25.1 percent in January 2024.
Also contributing to the uptrend of food inflation were noted in rice food group at 18.4 percent in February 2024 from 18.2 percent in January 2024; fish and other seafood at -7.6 percent during the month from -7.7 percent in January 2024; and ready-made food and food products not elsewhere classified at 6.8 percent in February 2024 from 5.4 percent in January 2024. (Table 5)
 

Meanwhile, lower food inflation were recorded in the indices of the following food groups:
a.    Flour, bread and other bakery products, 11.1 percent from 11.4 percent;
b.    Milk, other dairy products and eggs, 11.4 percent from 12.6 percent;
c.    Oils and fats, 1.3 percent from 2.6 percent;
d.    Fruits and nuts, -0.1 percent from 1.4 percent; and
e.    Sugar confectionery and desserts, 0.2 percent from 2.2 percent.

2.2 Main Contributors to the Food Inflation

Food inflation shared 164.2 percent or -0.3 percentage point to the overall inflation in February 2024. The food groups with highest contribution to the food inflation during the month were the following:
a.    Meat and other parts of slaughtered land animals with 359.1 percent share or -1.8 percentage points;
b.    Milk, other dairy products and eggs with 184.0 percent share or -0.9 percentage point; and
c.    Ready-made food and other food products not elsewhere classified with 41.2 percent share or -0.2 percentage point.

Table B. Year-on-Year Inflation Rates in the Province of Cebu, All Items

In Percent

January 2020 – February 2024
(2018=100)

Source: Philippine Statistics Authority

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