July 2024 Siquijor rate of inflation slightly increased to 4.3 percent

A.    Philippines

The Philippines’ headline inflation or overall inflation increased to 4.4 percent in July 2024 from 3.7 percent in June 2024. This brings the national average inflation from January to July 2024 to 3.7 percent. In July 2023, inflation rate was higher at 4.7 percent. (Table A)

The main drivers to the upward trend of the headline inflation was primarily influenced by the higher year-on-year increase in the index of housing, water, electricity, gas and other fuels at 2.3 percent during the month from 0.1 percent in June 2024. The faster annual growth rate of the heavily-weighted food and non-alcoholic beverages index at 6.4 percent in July 2024 from 6.1 percent in June 2024 also contributed to the uptrend of the overall inflation.

B.    Central Visayas

Inflation in Central Visayas decreased to 4.5 percent in July 2024 from 4.8 percent in June 2024. This brings the regional year to date inflation at 3.6 percent. In July 2023, inflation rate was lower at 4.1 percent.

For the month of July 2024, two (2) provinces in Region VII posted higher inflation rate and two (2) provinces posted a decrease in inflation rate. Cebu increased to 4.0 percent in July from 3.5 percent in June 2024. Siquijor also posted an increase to 4.3 percent in July from 4.1 percent in June 2024. Meanwhile, Bohol posted a decrease in inflation rate to 4.9 percent in July from 5.2 percent in June and Negros Oriental posted a decrease to 3.4 percent from 4.2 percent in June 2024.

C.    Province of Siquijor

1.    Headline Inflation

The headline inflation at the provincial level in July 2024 showed an increase in its annual increment at 4.3 percent. This brings the year-to-date inflation of the province for 2024 to 3.9 percent. Comparing to the inflation in July 2023, Siquijor’s inflation rate was still higher at 4.6 percent. (Table A & B and Figure 1)

1.1    Main Drivers to the Upward Trend of the Inflation

The upward trend of the headline inflation for the month of July was primarily brought by the increase in the index of the heavily weighted Food and Non-alcoholic beverages which recorded an inflation rate of 6.5 percent in July from 5.9 percent in June 2024. This was followed by the index of Housing, water, electricity, gas and other fuels at 4.6 percent from 4.5 percent in June 2024. Lastly, Furnishing, household equipment and routine household maintenance also contributed to the trend with 1.2 percent from 1.0 percent inflation rate in June 2024.

Additionally, the following commodity groups recorded an increase in inflation rate compared to its previous months rate:

     a. Clothing and Footwear at 3.2 percent from 3.1 percent; 
     b. Education services at 0.6 from .01 percent;
     c. Information and communication at 0.2 from 0.0 percent. (Table 3 and 4)

On the other hand, four commodity groups recorded a decrease in inflation rate compared to its previous months rate:

     d. Alcoholic beverages and tobacco at 3.3 from 3.4 percent;
     e. Health at 2.8 percent from 3.3 percent;
     f. Transport at 0.5 percent from 0.8 percent; 
    g. Lastly, Personal Care, and miscellaneous goods and services at 4.5 percent from 4.6 percent. (Table 3 and 4)

Furthermore, indices of the following commodity groups in the province retained its previous month’s records:

     h. Recreation, Sport and Culture at 2.3 percent;
     i. Restaurants and accommodation services at .01 percent;
     j. Financial services at -0.1 percent. (Table 3 and 4)

1.2     Main Contributors to the Headline Inflation

The top three main contributors to the July 2024 overall inflation of 4.3 percent in the province were the following:

     a. Food and Non-alcoholic beverages with 62.7 percent share or 2.70 percentage points;
   b. Housing, water, electricity, gas and other fuels with 21.8 percent share or 0.94 percentage points; and
     c. Personal Care and miscellaneous goods and services with 4.6 percent share or 0.20 percentage point.
 

2.    Food Inflation

Like the trend at the national level, the food inflation at the provincial level also increased to 6.5 percent in July from 5.9 percent in July 2024. In July 2023, food inflation was lower at 3.9 percent. (Table 6 & 7)

2.1 Main Drivers to the Upward Trend of the Food Inflation

The acceleration of food inflation in the province in July 2024 was primarily brought by the increase of the index of Fruits and Nuts at 18.3 percent from 10.7 percent in June 2024, followed by Fish and Other seafood with an index of 2.6 percent from 0.4 percent in June 2024. Thirdly, index of Ready-made food and other food products at 14.0 percent from 12.7 percent in June 2024.

Additionally, the following food groups also recorded an increase in index compare to the previous month:

     a. Vegetable, tubers, plantains, cooking bananas and pulses at 7.0 percent from 5.7 percent;
     b. Meat and other parts of slaughtered animal at -1.5 percent from -1.7 percent;
     c. Lastly, Corn at 12.7 percent from 9.3 percent. (Table 5)
Moreover, the following food groups posted a decrease in indices compared to the previous month:

     d. Rice at 16.3 percent from 18.4 percent;
     e. Flour, Bread and Other Bakery Products, Pasta Products and Other Cereals at 3.4 percent from 3.8 percent;
     f. Milk, other dairy products and eggs at 1.7 percent from 2.8 percent 
     g. Oils and fats at 0.1 percent from 1.4 percent;
     h. Sugar, confectionery and desserts at -7.7 percent from -5.0 percent (Table 5)

Furthermore, index of (Table 5)

2.2    Main Contributors to the Food Inflation

In July 2024, food shared at the provincial level 59.4 percent or 2.55 percentage points to the overall inflation. The main food items contributing to the July 2024 overall food inflation were the following:

    a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 65.7 percent share or 4.27 percentage points; 
    b. Fruits and nuts with 14.3 percent share or 0.93 percentage points; and
   c. Vegetables, tubers, plantains, cooking bananas and pulses with 9.4 percent share or 0.61 percentage point. 
 

TECHNICAL NOTES

Consumer Price Index (CPI)

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.

Uses of CPI

     • The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso.  It is a major statistical series used for economic analysis and as monitoring indicator of the government economic policy.
     • Measures the composite change in the consumer prices in various commodities overtime.

Computation of CPI

The computation of CPI involves consideration of the following important points:

     a. Base Period – The reference date or base period is the benchmark or reference date or period at which the index is taken as equal to 100.
     b. Market Basket – A sample of the thousands of varieties of goods purchased for consumption and the services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers.
     c. Weighting System – The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.
     d. Formula – The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2018) weights.
    e. Geographic Coverage – CPI values are computed at the national, regional, and provincial levels, and or selected cities.

Inflation Rate

The inflation rate is the annual rate of change, or the year-on-year change of CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of money.

***Statistical tables in excel file are provided as an attachment of this release.

APPROVED FOR RELEASE:

(SGD.)
JOSELITO C. MAGHANOY
(Supervising Statistical Specialist)
Officer-in-Charge