June 2024 Siquijor rate of inflation slightly increased to 4.1 percent. 

1. Philippines

   The Philippines’ headline inflation or overall inflation eased to 3.7 percent in June 2024 from 3.9 percent in May 2024. This brings the national average inflation from January to June 2024 to 3.5 percent. In June 2023, inflation rate was higher at 5.4 percent. (Table A)

   The main drivers to the downtrend of the headline inflation was primarily influenced by the slower annual increment of housing, water, electricity, gas and other fuels at 0.1 percent during the month from 0.9 percent in May 2024. The slower annual increases in the indices of transport with 3.1 percent in June 2024 from 3.5 percent in May 2024 also contributed to the downtrend of the overall inflation, and restaurants and accommodation services with 5.1 percent inflation in June 2024 from 5.3 percent inflation in the previous month.

2. Central Visayas

   Inflation in Central Visayas increased to 4.8 percent in June 2024 from 4.0 percent in May 2024. This brings the regional year to date inflation at 3.4 percent. In June 2023, inflation rate was higher at 5.0 percent.

   Relative to their May 2024 inflation rates, all provinces in Region VII posted higher inflation rate in June 2024. Bohol slightly increased to 5.2 percent from 5.1 percent, Cebu showed faster annual increment at 3.5 percent from 2.3 percent, Negros Oriental also showed faster annual increment at 4.2 percent from 3.6 percent. Lastly, Siquijor showed slightly increase at 4.1 percent from 3.8 percent in May 2024.

3. Province of Siquijor

   1. Headline Inflation

      The headline inflation at the provincial level in June 2024 showed an increase in its annual increment at 4.1 percent. This brings the year-to-date inflation of the province for 2024 to 3.9 percent. Comparing to the inflation in June 2023, Siquijor’s inflation rate was still higher at 6.2 percent. (Table A & B and Figure 1)

      

       

      

       

      1.1 Main Drivers to the Upward Trend of the Inflation

      The upward trend of the headline inflation for the month of June was primarily brought by the increase in the index of the heavily weighted Food and Non-alcoholic beverages which recorded an inflation rate of 5.9 percent in June from 4.5 percent in May 2024.

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

      1. Alcoholic beverages and tobacco at 3.4 from 4.4 percent;
      2. Clothing and Footwear at 3.1 percent from 3.5 percent;
      3. Housing, water, electricity, gas and other fuels at 4.5 percent from 5.6 percent;
      4. Furnishings, household equipment and routine household maintenance at 1.0 percent from 1.2 percent;
      5. Health at 3.3 percent from 3.6 percent;
      6. Transport at 0.8 percent from 1.3 percent;
      7. Lastly, Personal Care, and miscellaneous goods and services at 4.6 percent from 4.8 percent. (Table 3 and 4)

       

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

      1. Information and communication at 0.0 percent;
      2. Recreation, Sport and Culture at 2.3 percent;
      3. Education services at .01 percent;
      4. Restaurants and accommodation services at .01 percent;
      5. 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 June 2024 overall inflation of 4.1 percent in the province were the following:

      1. Food and Non-alcoholic beverages with 60.3 percent share or 2.47 percentage points;
      2. Housing, water, electricity, gas and other fuels with 22.6 percent share or .93 percentage points; and
      3. Personal Care and miscellaneous goods and services with 5.0 percent share or 0.20 percentage point.

       

       

   2. Food Inflation

      Like the trend at the national level, the food inflation at the provincial level also increased to 5.9 percent in June from 4.4 percent in May 2024. In June 2023, food inflation was lower at 5.6 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 June 2024 was primarily brought by the increase of the indices of the following food groups from its previous months index:

      1. Rice at 18.4 percent from 18.2 percent;
      2. Fish and other seafood at 0.4 percent from -4.9 percent;
      3. Fruits and nuts at 10.7 percent from 7.3 percent;
      4. Vegetable, tubers, plantains, cooking bananas and pulses at 7.0 percent from 5.7 percent;
      5. Ready-made food and other food products at 12.7 percent from 9.8 percent. (Table 5)

       

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

      1. Corn at 9.3 percent from 10.5 percent;
      2. Flour, Bread and Other Bakery Products, Pasta Products and Other Cereals at 3.8 percent from 4.8 percent;
      3. Milk, other dairy products and eggs at 2.8 percent from 3.2 percent;
      4. Oils and fats at 1.4 percent from 1.6 percent;
      5. Sugar, confectionery and desserts at -5.0 percent from -3.9 percent (Table 5)

       

       

      2.2 Main Contributors to the Food Inflation

      In June 2024, food shared at the provincial level 56.8 percent or 2.33 percentage points to the overall inflation. The main food items contributing to the June 2024 overall food inflation were the following:

      1. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 74.0 percent share or 4.37 percentage points;
      2. Vegetables, tubers, plantains, cooking bananas and pulses with 10.0 percent share or 0.59 percentage point; and
      3. Fruits and nuts with 9.1 percent share or 0.54 percentage points

       

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:

1. 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.
2. 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.
3. Weighting System - The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.
4. 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.
5. 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