A.    The Philippines

The country’s inflation rate for the bottom 30% income households increased to 5.8 percent in July 2024 from 5.5 percent in June 2024. This brings the average inflation for this income group from January to July 2024 to 4.9 percent. In July 2023, inflation rate was posted at 5.2 percent. (Table A)

B. Central Visayas
1.    Regional Inflation

Following the trend at the national level, inflation rate for the bottom 30% income households in Central Visayas increased to 7.7 percent in July 2024 from 7.0 percent in June 2024. The region’s average inflation for this income group from January to July 2024 stood at 4.7 percent. In July 2023, the inflation rate in the region recorded at 6.4 percent. (Table A)

C. City of Cebu

1. Headline Inflation

The headline inflation rate for the bottom 30% income households in the City of Cebu had a faster increase of 7.8 percent in July 2024 from 7.4 percent in June 2024. This brings the city’s average inflation at 5.6 percent from January to July 2024. In July 2023, the inflation rate was recorded 0.4 percent. (Table A and Figure 1)

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

The main source to the upward trend of the headline inflation rate for this income group in July 2024 were the faster annual increases of housing, water, electricity, gas and other fuels at 11.7 percent, food and non-alcoholic beverages at 9.7 percent, and education services at 6.6 percent from their previous month’s respective inflation rate at 10.6 percent, 9.4 percent and 4.2 percent. (Table 3)

Additional faster year-on-year increments were also posted during the month in the indices of transport at 3.9 percent, furnishing, household equipment and routine household maintenance at 4.6 percent, and health at 3.4 percent, and from their respective inflation rate at 3.8 percent, 3.9 percent, and 3.3 percent in June 2024. (Table 3)

In contrast, slower year-on-year increases were recorded in the indices of the following commodity group during the month:

a.    Alcoholic beverages and tobacco, 2.9 percent from 3.4 percent;
b.    Clothing and footwear, 0.7 percent from 1.5 percent; and
c.    Personal care, and miscellaneous goods and services, 5.1 percent from 5.2 percent. (Table 3)

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

a.    Information and communication, 0.0 percent;
b.    Recreation, sport and culture, 18.1 percent;
c.    Restaurants and accommodation services, 2.1 percent; and
d.    Financial services, 0.0 percent. (Table 3)

1.2    Main Contributors to the Headline Inflation

The following commodity groups were the top three contributors to the July 2024 overall inflation for the bottom 30% income households in the City of Cebu:

a.    Food and non-alcoholic beverages with 57.2 percent share or 4.5 percentage points;
b.    Housing, water, electricity, gas and other fuels with 30.2 percent share or 2.4     percentage points; and
c.    Restaurants and accommodation services with 3.7 percent share or 0.3 percentage point.

2. Food Inflation

Food inflation rate for the bottom 30% income households in the City of Cebu had a faster increase at 10.5 percent in July 2024 from 10.0 percent in June 2024. In July 2023, the food inflation was lower at 1.6 percent. (Table 7)

2.1    Main Drivers to the Uptrend of Food Inflation

The uptrend in the food inflation during the month was primarily driven by the faster annual increase in the indices of corn at 35.4 percent, meat and other parts of slaughtered land animals at 7.8 percent, and vegetables, tubers, plantains, cooking bananas and pulses at 54.7 percent during the month from their previous month’s respective inflation rate at 18.8 percent, 6.6 percent, and 51.5 percent. (Table 5)

In addition, higher inflation rates were also recorded in the indices of the following food groups during the month:

a.    Fish and other seafood, 1.2 percent from 0.1 percent;
b.    Ready-made food and other food products not elsewhere classified, 7.6 percent from 6.9 percent; and
c.    Oils and fats, -2.4 percent from -2.5 percent. (Table 5)
In contrast, lower inflation rates were noted in the indices of the following food groups in July 2024:
a.    Rice, 15.8 percent from 16.6 percent;
b.    Flour, bread and other bakery products, pasta products, and other cereals, 1.9 percent from 2.8 percent;
c.    Milk, other dairy products and eggs, 4.6 percent from 5.2 percent;
d.    Fruits and nuts, 4.6 percent from 9.7 percent; and
e.    Sugar, confectionary and desserts, -2.8 percent from -2.5 percent. (Table 5)

2.2 Main Contributors to the Food Inflation

Food inflation contributed 56.1 percent share or 4.4 percentage points to the July 2024 overall inflation for this particular income group.
Among the food groups, the main contributors to the food inflation during the month were the following:

a.    Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals with 58.8 percent share or 6.2 percentage points;
b.    Vegetables, tubers, plantains, cooking bananas and pulses with 24.1 percent share or 2.5 percentage point; and
c.    Meat and other parts of slaughtered land animals with 10.0 percent share or 1.1 percentage points.

Approved by:

(SGD)MELCHOR B. BAUTISTA
Chief Statistical Specialist

MLA/KST