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 Mandaue
1. Headline Inflation

The headline inflation rate for the bottom 30% income households in the City of Mandaue had a slower increase at 9.9 percent in July 2024 from 10.5 percent in June 2024. This brings the city’s average inflation at 10.2 percent from January to July 2024.  In July 2023, the inflation rate was lower which recorded at 4.1 percent. (Table A and Figure 1)

1.1    Main Drivers to the Downward Trend of Headline Inflation in the City of Mandaue

The main drivers to the deceleration of the headline inflation rate during the month were mainly brought by the slower year-on-year increases of housing, water, electricity, gas and other fuels at 31.5 percent, alcoholic beverages and tobacco at 0.5 percent, and health at 4.6 percent from their previous month’s respective inflation rate at 33.3 percent, 11.2 percent, and 6.2 percent. (Table 3)

Slower annual increments were also observed in the indices of personal care, and miscellaneous goods and services at 3.8 percent and furnishing, household equipment and routine household maintenance at 3.7 percent in July 2024 from their respective inflation rate at 4.4 percent and 3.8 percent in June 2024. (Table 3)

In contrast, faster annual increase was posted in the index of transport at 3.6 percent in July 2024 from 3.4 percent in June 2024. (Table 3)

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

a.    Food and non-alcoholic beverages, 8.4 percent;
b.    Clothing and footwear, 0.9 percent;
c.    Information and communication, 0.0 percent;
d.    Recreation, sport and culture, 22.5 percent;
e.    Education services, 0.0 percent;
f.    Restaurants and accommodation services, 0.9 percent; and
g.    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 Mandaue:

a)    Housing, water, electricity, gas and other fuels with 51.6 percent share or 5.1 percentage points.
b)    Food and non-alcoholic beverages with 40.4 percent share or 4.0 percentage points; and
c)    Transport with 2.3 percent share or 0.2 percentage point.

2. Food Inflation

Food inflation rate for the bottom 30% income households in the City of Mandaue retained its previous month’s inflation rate at 9.0 percent. In July 2023, the food inflation stood at 5.6 percent. (Table 7)

2.1 Main Contributors to the Food Inflation

Food inflation contributed 39.8 percent share or 3.9 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 89.4 percent share or 8.1 percentage points;
b.    Vegetables, tubers, plantains, cooking bananas and pulses with 14.3 percent share or 1.3 percentage points; and
c.    Meat and other parts of slaughtered land animals with 7.3 percent share or 0.7 percentage point.