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)

A.    The Philippines

The Philippines’ headline inflation or overall inflation slowed down further to 1.9 percent in September 2024. This is the lowest inflation rate since the 1.6 percent inflation rate recorded in May 2020. The inflation rate in August 2024 was recorded at 3.3 percent. This brings the national average inflation from January to September 2024 to 3.4 percent. In September 2023, the inflation rate was higher at 6.1 percent. (Table A)

B. Central Visayas

1.    Regional Inflation

Following the trend at the national level, the headline inflation in Central Visayas slowed down further to 2.1 percent in September from 3.4 percent in August 2024. This brings the regional average inflation from January to September 2024 to 3.4 percent. In September 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 further to 4.3 percent in September 2024 from 5.6 percent in August 2024. This brings the city’s average inflation from January to September 2024 to 5.2 percent. In September 2023, the inflation rate in the city was lower which recorded at 2.2 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 September 2024 were primarily brought by the slower year-on-year increases of the indices of food and non-alcoholic beverages  at 1.5 percent, and restaurants and accommodation services at 14.4 percent from their respective inflation rates at 3.5 percent and 17.4 percent in the previous month. Transport commodity group with faster annual decrement in September 2024 at 4.0 percent from annual decrease at 1.4 percent in the previous month also contributed to the downtrend headline inflation of the province.  (Table 3)

Furthermore, slower annual increments were also recorded in the indices of the following commodity groups:

a. Furnishings, household equipment and routine household maintenance, 1.3 percent from 1.9 percent;
b. Clothing and footwear, 2.3 percent from 2.5 percent; and
c. Recreation, sport and culture, 4.1 percent from 4.2 percent.  

On the contrary, faster year-on-year increase was noted in personal care, miscellaneous goods and services commodity group at 4.7 percent from 4.6 percent in August 2024.

Commodity groups that retained their previous month’s inflation were the following:

a. Alcoholic beverages and tobacco, 3.1 percent;
b. Housing, water, electricity, gas and other fuels, 8.4 percent;
c. Health, 2.7 percent;
d. Information and communication, 1.4 percent;
e. Education 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 September 2024 headline inflation were the following:

a.    Housing, water, electricity, gas and other fuels with 47.3 percent share or 2.0 percentage points;
b.    Restaurants and accommodation services with 36.3 percent share or 1.6 percentage points; and
c.    Food and non-alcoholic beverages with 12.0 percent share or 0.5 percentage point.

2. Food Inflation

Food inflation in the city had slowed down to 1.5 percent from 3.8 percent in August 2024. In September 2023, food inflation was higher which recorded at 5.8 percent. (Table 7)

2.1 Main Drivers to the Downward Trend of Food Inflation

The downtrend of food inflation in September 2024 was mainly brought by the slower annual increase in the food group of rice at 4.8 percent from 10.4 percent in August 2024. This was followed by vegetables, tubers, plantains, cooking bananas and pulses with faster annual decrease at 24.0 percent from annual drop of 2.7 percent in August 2024. In addition, corn food group with no price movement during the month from 72.2 percent in the previous month also contributed to the downtrend food inflation in the city.

Moreover, slower annual increments were also recorded in the indices of flour, bread and other bakery products, pasta products, and other cereals at 1.7 percent, and meat and other parts of slaughtered land animals at 6.9 percent from their respective inflation rates at 2.2 percent and 8.5 percent in the previous month.

On the other hand, faster annual increments were observed in the indices of the following food groups:

a. Milk, other dairy products and eggs, 5.3 percent from 1.7 percent;
b. Fruits and nuts, 20.2 percent from 16.5 percent;
c. Sugar, confectionery and desserts, 4.0 percent from 3.5 percent; and
d. Ready-made food and other food products not elsewhere classified, 6.1 percent from 4.5 percent. 

Slower annual decrease was noted in fish and other seafood index at 6.1 percent from 11.2 annual decline in the previous month.

Oils and fats had remained its previous month’s food inflation rate at 0.1 percent annual decline.

2.2 Main Contributors to the Food Inflation

Food inflation shared 11.2 percent or 0.5 percentage point to the overall inflation in September 2024. Food groups with highest contribution to food inflation during the month were the following:

a. Meat and other parts of slaughtered land animals, 69.3 percent share or 1.0 percentage point;
b. Cereals and cereal products which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 64.7 percent share or1.0 percentage point; and
c. Fruits and nuts, with 48.7 percent share or 0.7 percentage point.

Table B. Year-on-Year Inflation Rates in the City of Lapu-Lapu, All Items
In Percent
January 2020 – September 2024
(2018=100)
 

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
 

KST/MLA