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 increased to 3.7 percent in March 2024 from 3.4 percent in February 2024. This brings the national average inflation from January 2024 to March 2024 at 3.3 percent. In March 2023, inflation rate was higher at 7.6 percent.  (Table A)

B. Central Visayas

1. Regional Inflation

Following the trend at the national level, headline inflation rate in Central Visayas also increased to 3.2 percent in March 2024 from 2.7 percent in February 2024. The region’s average inflation from January to March 2024 stood at 2.8 percent. In March 2023, the inflation rate in the region was higher which recorded at 6.6 percent. (Table A)

C. Province of Cebu

1. Headline Inflation

The headline inflation rate in the Province of Cebu increased to 0.3 percent in March 2024 from 0.2 percent annual decline in February 2024. This brings the province’s average inflation at 0.1 percent slower decrease from January to March 2024.  In March 2023, the inflation rate was higher which recorded at 8.1 percent. (Table A and Figure 1)

1.1Main Drivers to the Upward Trend of Headline Inflation in the Province ofCebu

The uptrend of the headline inflation in March 2024 was primarily influenced by the year-on-year increase in the heavily weighted food and non-alcoholic beverages at 1.1 percent in March 2024 from 0.2 percent annual decline in February 2024. Also contributed to the uptrend were the faster annual increases in the indices of alcoholic beverages and tobacco at 11.6 percent during the month from 10.9 percent in February 2024, and clothing and footwear at 0.8 percent in March 2024 from 0.7 percent in the previous month.

Moreover, higher inflation rate was also noted in recreation, sport and culture index at 1.6 percent in February 2024 from 1.4 percent in the previous month.

On the other hand, lower inflation rates were recorded in the indices of health at 5.6 percent, and transport at 0.7 percent during the month from their respective inflation rates at 5.8 percent and 1.2 percent in the previous month.

Faster year-on-year decrease was noted in housing, water, electricity, gas and other fuels commodity group at 5.6 percent in March 2024 from 5.0 percent annual decline in February 2024.

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

      a. Furnishings, household equipment and routine household maintenance, 2.9 percent;
      b. Information and communication, 0.4 percent;
      c. Education services, 0.5 percent;
      d. Restaurants and accommodation services, 2.7 percent;
      e. Financial services, 0.0 percent; and
      f. Personal care, miscellaneous goods and services, 3.2 percent.
        (Table 3, All Income)

1.2 Main Contributors to the Headline Inflation

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

       a. Food and non-alcoholic beverages with 200.1 percent share or 0.6 percentage point;
     b. Restaurants and accommodation services with 120.4 percent share or 0.4 percentage point; and
       c. Alcoholic beverages and tobacco with 92.5 or 0.3 percentage point.

2. Food Inflation

Food inflation in the Province of Cebu increased to 0.8 percent in March 2024 from 0.5 percent annual decline in February 2024. In March 2023, food inflation was higher at 7.7 percent. (Table 7)

2.1 Main Drivers to the Uptrend of Food Inflation

The acceleration of food inflation in the province was mainly brought about by the slower year-on-year decrease in the indices of vegetables, tubers, plantains, cooking bananas and pulses at 10.7 percent, and fish and other seafood at 5.8 percent in March 2024 from their respective inflation rates at 22.3 percent and 7.6 percent annual decline in the previous month. Ready-made food and other food products not elsewhere classified index also contributed to the acceleration of food inflation at 7.2 percent in March 2024 from 6.8 percent in February 2024. 

On the contrary, lower annual growth rates during the month were observed in the indices of the following food groups:

      a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products and other cereals, 0.1 percent from 0.3 percent;
      b. Meat and other parts of slaughtered land animals, 11.8 percent from 12.5 percent;
      c. Milk, other dairy products and eggs, 10.3 percent from 11.4 percent.

In addition, the index of sugar confectionery and desserts recorded an annual decline of 3.7 percent during the month from a 0.2 percent annual increase in the previous month.

Food groups that retained their previous month’s inflation rates were oils and fats at 1.3 percent, and fruits and nuts at 0.1 percent annual decline. (Table 5)

2.2 Main Contributors to the Food Inflation

Food inflation shared 137.2 percent or 0.4 percentage point to the overall inflation in March 2024. The food groups with highest contribution to the food inflation during the month were the following:

      a. Meat and other parts of slaughtered land animals with 147.2 percent share or 1.2 percentage points;
      b. Milk, other dairy products and eggs with 72.2 percent share or 0.6 percentage point; and
      c. Ready-made food and other food products not elsewhere classified with 19.0 percent share or 0.1 percentage point. 

3. Overall Inflation for the Bottom 30% Income Households

The Philippines

The country’s’ inflation rate for the bottom 30% income households increased to 4.6 percent in March 2024 from 4.2 percent in February 2024. In March 2023, inflation rate was posted at 8.8 percent.  (Table C)

Central Visayas

Following the trend at the national level, inflation rate for the bottom 30% income households in Central Visayas also increased to 3.3 percent in March 2024 from 2.8 percent in February 2024. In March 2023, the inflation rate in the region was higher which recorded at 9.8 percent. (Table C)

Province of Cebu

The inflation rate in the Province of Cebu for the bottom 30% income households had a slower decrease at 0.3 percent in March 2024 from 0.7 percent annual decline in February 2024. In March 2023, the inflation rate was higher which recorded at 9.0 percent. (Table C and Figure 2)

3.1 Main Drivers to the Upward Trend of Overall Inflation

The main driver to the upward trend of the overall inflation rate for this income group in March 2024 was the slower annual decrease of the heavily-weighted food and non-alcoholic beverages at 2.3 percent from 3.0 percent annual decline in the previous month.
Also, higher annual increments were posted in the indices of housing, water, electricity, gas and other fuels at 0.8 percent and alcoholic beverages and tobacco at 8.3 percent in March 2024 from their previous month’s inflation rates at 0.2 percent and 7.4 percent, respectively.

In addition, higher inflation rates were also noted in the indices of recreation, sport and culture at 4.6 percent during the month from 4.1 percent in February 2024, and personal care, and miscellaneous goods and services at 4.3 percent in March 2024 from 4.2 percent in the previous month.

On the other hand, lower inflation rate was posted in health commodity group index at 5.2 percent during the month from 5.4 percent in the previous month, and transport commodity group at 0.0 percent in March 2024 from 1.9 percent in February 2024. (Table 3, Bottom 30%)

The indices of the following commodity groups that retained their previous month’s annual rates were:  
         
      a. Clothing and footwear, 0.8 percent
      b. Furnishings, household equipment and routine household maintenance, 2.2 percent;
      c. Information and communication, 0.0 percent; 
      d. Education services, 0.2 percent;
      e. Restaurants and accommodation services, 2.7 percent; and
      f. Financial services, 0.0 percent. (Table 3, Bottom 30%)

3.2 Main Contributor to the Overall Inflation

Food and non-alcoholic commodity group with 722.1 percent share or -2.2 percentage points was the main contributor to March 2024 overall inflation for the bottom 30% household income in the Province of Cebu.
 

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:

(SGD.)
MELCHOR B. BAUTISTA
Chief Statistical Specialist