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 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 at 3.5 percent. In June 2023, inflation rate was higher at 5.4 percent.(Table A)
B. Central Visayas

1. Regional Inflation

Inflation in Central Visayas increase to 4.8 percent in June 2024 from 4.0 percent in May 2024. This brings the regional average inflation from January 2024 to June 2024 at 3.4 percent. In June 2023, inflation rate was higher at 5.0 percent. (Table A)

C. Province of Cebu

1. Headline Inflation

The headline inflation rate in the Province of Cebu accelerated to 3.5 percent in June 2024 from 2.3 percent in May 2024. The province’s average inflation rate from January to June 2024 stood at 0.9 percent. While in June 2023, the inflation rate was higher which recorded at 5.6 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 June 2024 was primarily influenced by the year-on-year faster increase in the heavily weighted food and non-alcoholic beverages at 7.8 percent from 5.2 percent in May 2024. Also contributing to the uptrend was the slower annual decrease of housing, water, electricity, gas and other fuels at 3.5 percent during the month from 4.2 percent annual drop in May 2024. (Table 3)

In addition, faster annual increment was posted during the month in the index of transport at 0.8 percent from 0.7 percent in the previous month. (Table 3)

On the other hand, slower annual increases were recorded in the following commodity groups during the month:

a. Alcoholic beverages and tobacco, 7.4 percent from 8.1 percent;
b. Clothing and footwear, 0.7 percent from 0.8 percent;
c. Furnishings, household equipment and routine household maintenance, 2.6 percent from 2.7 percent;
d. Health, 4.3 percent from 4.9 percent;
e. Information and communication, 0.3 percent from 0.4 percent; and
f. Personal care, and miscellaneous goods and services, 2.2 percent from 2.9 percent. (Table 3)

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

a. Recreation, sport and culture, 1.7 percent;
b. Education services, 0.5 percent;
c. Restaurants and accommodation services, 2.7 percent; and
d. Financial services, 0.0 percent. (Table 3)

1.2    Main Contributors to the Headline Inflation

The top three commodity groups that contributed to the June 2024 headline inflation were the following:

a. Food and non-alcoholic beverages with 97.9 percent share or 3.4 percentage points;
b. Restaurants and accommodation services with 8.3 percent share or 0.3 percentage point; and 
c. Alcoholic beverages and tobacco with 4.1 percent share or 0.1 percentage point.

2. Food Inflation

Food inflation in the Province of Cebu had a faster year-on-year increase at 8.1 percent in June 2024 from 5.3 percent in the previous month. In June 2023, food inflation rate stood at 6.1 percent. (Table 7)

2.1 Main Drivers to the Uptrend of Food Inflation

The acceleration of food inflation in the province was mainly brought by the faster annual increase of corn at 21.0 percent, rice at 16.3 percent, and vegetables, tubers, plantains, cooking bananas and pulses at 18.4 percent in June 2024 from their respective inflation rates at zero percent, 15.3 percent and 10.3 percent in May 2024. (Table 5)

Additionally, faster year-on-year increase was observed during the month in the index of fruits and nuts at 2.7 percent from 0.4 percent annual drop, while 11.2 percent in ready-made food and other food products N.E.C from 9.0 percent in May 2024. (Table 5)

On the contrary, during the month slower annual increments were recorded in the indices of flour, bread and other bakery products, pasta products, and other cereals at 8.3 percent, meat and other parts of slaughtered land animals at 6.4 percent, and milk, other dairy products and eggs at 4.7 percent from their respective inflation rates at 10.0 percent, 7.2 percent and 7.9 percent, while faster annual decreases were noted in the indices of fish and other seafood at 6.5 percent, and sugar, confectionery and desserts at 6.4 percent from their respective inflation rates at 2.9 percent and 6.3 percent annual decline in the previous month. (Table 5)

Meanwhile, the index oils and fats retained its inflation rate at 1.5 percent. (Table 5)

2.2 Main Contributors to the Food Inflation

Food inflation shared 94.3 percent or 3.3 percentage points to the overall inflation in June 2024. The food groups with highest contribution to the food inflation during the month were the following:

a. Cereals and cereals products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with a share of 77.5 percent or 6.3 percentage points;
b. Vegetables, tubers, plantains, cooking bananas and pulses, with a share of 14.7 percent or 1.2 percentage points; and
c. Meat and other parts of slaughtered land animals, with a share of 12.5 percent or 1.0 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 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:

MELCHOR B. BAUTISTA
Chief Statistical Specialist
 

LGCS/MJDG