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 2.9 percent in December 2024 from 2.5 percent in November 2024. In December 2023, the inflation rate was higher at 3.9 percent. The Philippines’ annual average inflation rate for 2024 stood at 3.2 percent, which was lower than the 2023 annual average inflation rate of 6.0 percent. (Tables A and B)

B.    Central Visayas

Headline inflation in Central Visayas increased to 2.9 percent in December 2024 from 2.3 percent in November 2024. This brings the regional average inflation from January to December 2024 at 3.2 percent. In December 2023, inflation rate was higher at 3.9 percent. (Tables A and C)  
 

C.    Province of Bohol

1.    Headline Inflation

In December 2024, the headline inflation in Bohol accelerated to 3.4 percent from 1.8 percent in the previous month. The inflation rate (IR) in December 2023 was higher at 5.2 percent. Bohol’s annual average inflation rate in 2024 was recorded at 3.5 percent, which was lower than the 2023 annual average inflation rate of 6.6 percent. (Tables A and D, and Figure 1)

In comparison to national and regional figures, Bohol’s IR in December is 0.5 percentage point higher than the national and regional inflation rates. (Table A)
 

1.1    Main Drivers to the Upward Trend of the Headline Inflation

The uptrend in the overall inflation in Bohol in December 2024 was primarily influenced by the faster annual increment in the index of Housing, water, electricity, gas and other fuels at 7.7 percent during the month from -0.6 percent in the previous month. The annual increase of transport at 3.9 percent during the month from an annual decline of 1.9 percent in November 2024 also contributed to the uptrend.

In contrast, the following five commodity groups registered lower inflation rates in December 2024:
a. Food and non-alcoholic beverages, 1.6 percent from 3.9 percent;
b. Alcoholic beverages and tobacco, 3.9 percent from 4.8 percent;
c. Clothing and footwear, 0.9 percent from 1.1 percent;
d. Furnishings, household equipment and routine household maintenance, 1.5 percent from 1.6 percent; and
e. Personal care, and miscellaneous goods and services, 1.9 percent from 2.1 percent.

Furthermore, the following six commodity groups retained their respective previous month’s inflation rates in December 2024:
a. Health, 1.4 percent;
b. Information and communication, 1.8 percent;
c. Recreation, sport and culture, 1.0 percent;
d. Education services, 11.2 percent;
e. Restaurants and accommodation services, 0.3 percent; and
f. Financial services, -0.1 percent. (Table E)

1.2 Main Contributors to the Headline Inflation

The top three commodity groups contributing to the December 2024 overall inflation were the following:
a. Housing, water, electricity, gas and other fuels with 50.3 percent share or 1.71 percentage points;
b. Food and non-alcoholic beverages with 18.8 percent share or 0.64 percentage point; and
c. Transport with 14.2 percent share or 0.48 percentage point. 
 

2.    Food Inflation

Food inflation at the provincial level further eased to 1.6 percent in December 2024 from 4.0 percent in the previous month. In December 2023, food inflation was higher at 8.0 percent.

2.1 Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in Bohol in December 2024 was primarily driven by the slower annual increment in Cereals and cereal products, with Rice as the top contributor to this food group at 3.1 percent from 11.3 percent in November 2024. This was followed by Milk, other dairy products and eggs at 1.4 percent during the month from 4.9 percent in the previous month.

Moreover, slower annual increments were also observed in the indices of the following food groups in December 2024:
a. Vegetables, tubers, plantains, cooking bananas and pulses, -4.7 percent from -4.3 percent;
b. Ready-made food and other food products not elsewhere classified, 2.4 percent from 2.9 percent; and
c. Oils and fats, 0.0 percent from 0.3 percent.

On the other hand, faster annual increments in December 2024 were noted in the following food groups:
a. Meat and other parts of slaughtered land animals, 3.3 percent from 2.8 percent;
b. Fish and other seafood, -0.8 percent from -1.9 percent;
c. Fruits and nuts, 10.4 percent from 4.6 percent; and
d. Sugar, confectionery and desserts, -0.3 percent from -2.9 percent.

2.2 Main Contributors to the Food Inflation

Food shared 18.0 percent or 0.61 percentage point to the overall inflation in December 2024. The following food groups were the top contributors to food inflation during the month:    
a. Rice, with 64.5 percent share or 1.03 percentage points;
b. Meat and other parts of slaughtered land animals with 27.8 percent share or 0.45 percentage point; and
c. Fruits and nuts with 26.7 percent share or 0.43 percentage point. 
 

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 group of commodities to indicate the relative importance of that commodity or group of commodities in the market basket. 

Inflation Rate 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 

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

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,

Prepared by:

(SGD.) FIEL ROSE D. TAC-AN
Statistical Analyst

Approved by:

(SGD.) JESSAMYN ANNE C. ALCAZAREN
Chief Statistical Specialist

EBG