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.
Table A. Year-on-Year Inflation Rates, All Items
In Percent
(2018=100)
Source: Philippine Statistics Authority, Retail Price Survey of Commodities for the Generation of Consumer Price Index
*Year-on-year change of CPI for January to November 2024 vs. 2023
Source: Philippine Statistics Authority, Retail Price Survey of Commodities for the Generation of Consumer Price Index
A. The Philippines
The Philippines’ headline inflation or overall inflation increased to 2.5 percent in November 2024 from 2.3 percent in October 2024. This brings the national average inflation rate from January to November 2024 to 3.2 percent. In November 2023, the inflation rate was higher at 4.1 percent. (Table A)
B. Central Visayas
1. Regional Inflation
In Central Visayas, the headline inflation decreased to 2.3 percent in November 2024 from 2.9 percent in October 2024. This brings the regional average inflation from January to November 2024 to 3.2 percent. In November 2023, inflation rate was higher which posted at 3.8 percent. (Table A)
C. City of Lapu-Lapu
1. Headline Inflation
Lapu-Lapu City’s headline inflation rate slowed down to 2.1 percent in November 2024 from 2.6 percent in October 2024. This brings the city’s average inflation from January to November 2024 to 4.6 percent. In November 2023, the inflation rate stood at 4.6 percent. (Table A and Figure 1)
1.1 Main Drivers to the Downward Trend of the Headline Inflation
The downtrend of the headline inflation in November 2024 was primarily brought by the slower year-on-year increase of housing, water, electricity, gas and other fuels index at 2.7 percent from 5.0 percent in October 2024. This was followed by the transport commodity group with faster annual decrease at 3.7 percent during the month from annual drop of 0.9 percent in the previous month. (Table 3)
Moreover, personal care, and miscellaneous goods and services posted a year-on-year slower increase at 2.8 percent during the month from 3.4 percent in the previous month.
On the contrary, the commodity groups that recorded a faster annual increments were as follows:
a. Food and non-alcoholic beverages, 3.1 percent from 2.9 percent;
b. Clothing and footwear, 2.2 percent from 2.1 percent;
c. Furnishings, household equipment and routine household maintenance, 7.0 percent from 1.0 percent; and
d. Health, 1.8 percent from 1.6 percent.
While, indices of the following commodity groups that retained their previous month’s inflation rate were:
a. Alcoholic beverages and tobacco, 2.7 percent;
b. Information and communication, 0.1 percent;
c. Recreation, sport and culture, 2.8 percent;
d. Education services, 1.1 percent;
e. Restaurants and accommodation services, 1.1 percent; and
f. Financial services, 0.0 percent.
1.2 Main Contributors to the Headline Inflation
The top three commodity groups that contributed to the November 2024 headline inflation were the following:
a. Food and non-alcoholic beverages with 52.5 percent share or 1.1 percentage points;
b. Housing, water, electricity, gas and other fuels with 32.2 percent share or 0.7 percentage point; and
c. Furnishings, household equipment and household routine maintenance with 8.3 percent share or 0.2 percentage point.
2. Food Inflation
Food inflation in the city increased to 3.2 percent in November 2024 from 3.1 percent in October 2024. In November 2023, the food inflation was higher which recorded at 4.2 percent. (Table 7)
2.1 Main Drivers to the Upward Trend of Food Inflation
The uptrend of food inflation in November 2024 was mainly brought by the faster annual increase of vegetables, tubers, plantains, cooking bananas and pulses at 3.0 percent from an annual drop of 8.9 percent in the previous month. This was followed by the faster annual increases of fish and other seafood at 0.6 percent, and meat and other parts of slaughtered land animals at 3.9 percent during the month from their respective food inflation rates of 2.0 percent annual decrease and 2.9 percent annual increase in the previous month. (Table 5)
On the contrary, slower annual increases were observed in the indices of the following food groups during the month:
a. Rice, 2.8 percent from 5.7 percent;
b. Corn, 50.0 percent from 62.0 percent;
c. Milk, other dairy products and eggs, 1.8 percent from 3.3 percent;
d. Fruits and nuts, 8.4 percent from 15.7 percent;
e. Sugar, confectionery and desserts, 0.3 percent from 3.0 percent; and
f. Ready-made food and other food products not elsewhere classified, 4.7 percent from 4.8 percent.
Furthermore, oils and fats recorded a faster annual decrease at 0.2 percent from 0.1 percent annual decline in October 2024.
Meanwhile, flour, bread and other bakery products, pasta products and other cereals index retained its previous month’s food inflation rate at 0.9 percent.
2.2 Main Contributors to the Food Inflation
Food inflation shared 50.0 percent or 1.1 percentage points to the overall inflation in November 2024. Food groups with highest contribution to 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 44.1 percent share or 1.4 percentage points;
b. Meat and other parts of slaughtered land animals, with 23.6 percent share or 0.8 percentage point; and
c. Fruits and nuts, with 12. 2 percent share or 0.4 percentage point.
Table B. Year-on-Year Inflation Rates in the City of Lapu-Lapu, All Items
In Percent
January 2020 – November 2024
(2018=100)
Source: Philippine Statistics Authority, Retail Price Survey of Commodities for the Generation of Consumer Price Index
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
LGS/KTS
