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, inflation rate in Central Visayas also increased to 3.2 percent in March 2024 from 2.7 percent in February 2024. This brings the regional average inflation from January to March 2024 at 2.8 percent. In March 2023, inflation rate in the region was higher at 6.6 percent. (Table A)

C. City of Mandaue

1. Headline Inflation

Inflation rate in Mandaue City also increased to 7.5 percent in March 2024 from 6.7 percent in February 2024. The city’s average inflation rate from January to March 2024 stood at 6.7 percent. While in March 2023, the inflation rate in the city stood at 3.1    percent. (Table A and Figure 1)

1.1    Main Drivers to the Upward Trend of the Headline Inflation

The uptrend in the city’s headline inflation in March 2024 was primarily influenced by the higher year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 6.4 percent during the month from 4.2 percent in February 2024. In addition, the faster annual increases in the indices of transport at 2.6 percent during the month from 1.8 percent in February 2024, and personal care, and miscellaneous goods and services at 10.3 percent in March 2024 from 10.1 percent in the previous month contributed to the uptrend. (Table 3, All Income)

On the contrary, lower inflation rates were observed in the following commodity groups during the month:

a. Alcoholic beverages and tobacco, at 10.2 percent from 12.4 percent; 
b. Housing, water, electricity, gas and other fuels, 16.6 percent from 16.7 percent; and
c. Furnishings, household equipment and routine household maintenance, 3.5 percent from 3.7 percent. (Table 3, All Income)

Moreover, the indices of the following commodity groups retained their previous month’s annual growth rates:

a. Clothing and footwear, 0.2 percent;
b. Health, 4.9 percent;
c. Information and communication, 0.1 percent;
d. Recreation, sport and culture, 5.1 percent;
e. Education services, 0.0 percent;
f. Restaurants and accommodation services, 0.9 percent; and 
g. Financial services, -0.4 percent. (Table 3, All Income)

1.2 Main Contributors to the Headline Inflation

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

a. Housing, water, electricity, gas and other fuels with 56.6 percent share or 4.2 percentage point;
b. Food and non-alcoholic beverages with 28.0 percent share or 2.1 percentage points; and 
c. Personal care, and miscellaneous goods and services with 5.3 percent share or 0.4 percentage point.

2. Food Inflation

Food inflation at the city level rose to 6.8 percent in March 2024 from 4.4 percent in February 2024. In March 2023, food inflation stood still at 6.4 percent. (Table 7)

2.1 Main Drivers to the Upward Trend of Food Inflation

The acceleration of food inflation in March 2024 was mainly brought by the annual increase of 6.0 percent in vegetables, tubers, plantains, cooking bananas and pulses index from an 11.1 percent annual decline in the previous month. In addition, slower year-on-year decrease in fish and other seafood at 5.1 percent during the month from 9.2 percent annual decline in February 2024, and meat and other parts of slaughtered land animals recorded a faster annual increment of 9.9 percent during the month from 9.2 percent in February 2024. (Table 5)

The inflation rate of fruits and nuts recorded a faster annual increment of 11.1 percent during the month from 8.3 percent in February 2024. Moreover, faster annual increase were observed in ready-made food and other food products n.e.c., food groups at 7.4 percent during the month from 7.3 percent in February 2024. (Table 5)

On the other hand, lower inflation rates were observed in the following food groups:

a. Cereals and cereals products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, 13.2 percent from 13.5 percent;
b. Milk, other dairy products and eggs, 4.4 percent from 5.2 percent; and
c. Sugar, confectionery and desserts, -2.9 percent from -1.3 percent.

Moreover, oils and fats food group retained its previous month’s inflation rate at 0.3 percent. (Table 5)

2.2 Main Contributors to the Food Inflation

Food inflation shared 27.4 percent or 2.0 percentage points to the overall inflation in March 2024. The top three food groups in terms of contribution to the food inflation during the month were the following:

a. Cereals and cereals products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 66.3 percent share or 4.5 percentage points;
b. Meat and other parts of slaughtered land animals, with 25.1 percent share or 1.7 percentage points; and
c. Fruits and nuts, with 6.5 percent share or 0.4 percentage points.

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, inflation rate in the region was higher at 9.8 percent. (Table C)

City of Mandaue

Inflation rate for the bottom 30% income households in Cebu City also increased to 9.7 percent in March 2024 from 8.8 percent in February 2024. While in March 2023, the inflation rate in the city stood at 4.7    percent. (Table C and Figure 2)

3.1 Main Drivers to the Upward Trend of the Overall Inflation

The main driver to the upward trend of the city’s overall inflation for this income group in March 2024 was the higher year-on-year growth of the heavily-weighted food and non-alcoholic beverages at 8.0 percent from 6.2 percent in the previous month. (Table 3, Bottom 30%)

In addition, higher annual increments were posted in transport at 3.6 percent during the month from 3.2 percent in February 2024, housing, water, electricity, gas and other fuels at 23.5 percent in March 2024 from 23.4 percent in the previous month, and personal care, and miscellaneous goods and services at 13.8 percent during the month from 13.7 percent in February 2024. (Table 3, Bottom 30%)

On the contrary, lower inflation rates were observed in the following commodity groups during the month:

a. Alcoholic beverages and tobacco, at 12.1 percent from 15.3 percent; 
b. Furnishings, household equipment and routine household maintenance, 3.8 percent from 4.2 percent; and
c. Health, 8.3 percent from 8.6 percent.

Moreover, the indices of the following commodity groups retained their previous month’s annual growth rates:

a. Clothing and footwear, 0.3 percent;
b. Information and communication, 0.0 percent;
c. Recreation, sport and culture, 22.3 percent; 
d. Education services, 0.0 percent;
e. Restaurants and accommodation services, 0.9 percent; and
f. Financial services, 0.0 percent. (Table 3, Bottom 30%)

3.2 Main Contributors to the Overall Inflation

The following commodity groups were the top three contributors to the March 2024 overall inflation for the bottom 30% income households:

a. Housing, water, electricity, gas and other fuels with 49.8 percent share or 4.8 percentage point; 
b. Food and non-alcoholic beverages with 37.8 percent share or 3.7 percentage points; and
c. Personal care, and miscellaneous goods and services with 2.6 percent share or 0.2 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

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