A. The Philippines
The country’s inflation rate for the bottom 30% income households increased to 5.2 percent in April 2024 from 4.6 percent in March 2024. This brings the average inflation for this income group from January 2024 to April 2024 to 4.4 percent. In April 2023, inflation rate was posted at 7.4 percent. (Table A)
B. Central Visayas
1. Regional Inflation
Following the trend at the national level, headline inflation rate for the bottom 30% income households in Central Visayas also increased to 3.9 percent in April 2024 from 3.3 percent in March 2024. The region’s average inflation from January 2024 to April 2024 stood at 3.2. In April 2023, the inflation rate in the region was higher which recorded at 7.8 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 at 5.2 percent in April 2024 from 4.2 percent annual increase in March 2024. This brings the city’s average inflation at 4.5 percent from January to April 2024. In April 2023, the inflation rate was recorded 2.3 percent. (Table A)
1.1 Main Drivers to the Upward Trend of Headline Inflation in the City of Cebu
The main driver to the upward trend of the headline inflation rate for this commodity group in April 2024 was the faster annual increase of housing, water, electricity, gas and other fuels at 7.3 percent and clothing and footwear at 2.0 percent during the month from both 1.5 percent in March 2024.
In contrast, slower annual increase was recorded in the indices of the following commodity group during the month:
a) Food and non-alcoholic beverages, 5.3 percent from 5.8 percent;
b) Furnishing, household equipment and routine household maintenance, 4.0 percent from 4.1 percent;
c) Transport, 4.2 percent from 4.3 percent; and
d) Personal care, and miscellaneous goods and services, 5.7 percent from 5.8 percent.
Moreover, the indices of commodity groups that retained their previous month’s inflation were as follows:
a. Alcoholic beverages and tobacco, 9.9 percent;
b. Health, 4.2 percent;
c. Information and communication, 0.0 percent;
d. Recreation, sport and culture, 18.1 percent;
e. Education services, 4.2 percent;
f. Restaurants and accommodation services, 2.1 percent; and
g. Financial services, 0.0 percent.
1.2 Main Contributors to the Headline Inflation
The following commodity groups were the top three contributors to the April 2024 overall inflation for the bottom 30% income households in the City of Cebu:
a) Food and non-alcoholic beverages with 47.9 percent share or 2.5 percentage points;
b) Housing, water, electricity, gas and other fuels with 28.3 percent share or 1.5 percentage point; and
c) Restaurants and accommodation services with 5.7 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 slower increase at 5.5 percent in April 2024 from 6.1 percent in the previous month. In April 2023, the food inflation stood at 7.1 percent. (Table 7)
2.1 Main Drivers to the Downtrend of Food Inflation
The downtrend in the food inflation was primarily driven by the faster annual decrease in the indices of fish and other seafood at 0.6 percent and meat and other parts of slaughtered land animals at 2.2 percent in April 2024 from their respective inflation rates at 5.6 percent and 0.1 percent annual increase in March 2024. In addition, slower year-on-year increase was observed in the index of milk, other dairy products and eggs at 7.6 percent in April 2024 from 10.9 percent in previous month. (Table 5)
Moreover, slower annual increase during the month were noted in the index of flour, bread and other bakery products, pasta products, and other cereals at 4.1 percent from 4.5 percent in March 2024.
Faster annual decrease during the month was recorded in the index of sugar, confectionary and desserts at 3.3 percent from 2.2 percent annual decline in March 2024.
On the contrary, higher annual upticks were observed in the indices of the following food groups during the month:
a) Rice, 17.4 percent from 16.5 percent;
b) Corn, -7.4 percent from -9.0 percent;
c) Fruits and nuts, 17.5 percent from 17.0 percent;
d) Vegetables, tubers, plantains, cooking bananas and pulses, 1.7 percent from -15.5 percent; and
e) Ready-made food and other food products, 8.8 percent from 6.6 percent.
Meanwhile, the index of oils and fats retained their previous month’s rate at -2.5 percent.
2.2 Main Contributors to the Food Inflation
Food inflation contributed 45.5 percent or 2.4 percentage points to the April 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 85.3 percent share or 4.7 percentage points;
b. Milk, other dairy products and eggs with 9.1 percent share or 0.5 percentage point; and
c. Fruits and nuts with 7.7 percent share or 0.4 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
Headline Inflation is the rate of change in the weighted average prices of all goods and services in the CPI basket.
Approved by:
(SGD)MELCHOR B. BAUTISTA
Chief Statistical Specialist
