A. The Philippines
The country’s inflation rate for the bottom 30% income households increased to 5.2 percent in April 2024 from 4.6 percent in March 2024. This brings the average inflation for this income group from January 2024 to April 2024 to 4.4 percent. In April 2023, inflation rate was posted at 7.4 percent. (Table A)
B. Central Visayas
1. Regional Inflation
Following the trend at the national level, headline inflation rate for the bottom 30% income households in Central Visayas also increased to 3.9 percent in April 2024 from 3.3 percent in March 2024. The region’s average inflation from January 2024 to April 2024 stood at 3.2. In April 2023, the inflation rate in the region was higher which recorded at 7.8 percent. (Table A)
C. City of Lapu-Lapu
1. Headline Inflation
The headline inflation rate for the bottom 30% income households in the City of Lapu-Lapu had a faster increase at 9.3 percent in April 2024 from 8.7 percent annual increase in March 2024. This brings the city’s average inflation at 7.5 percent from January to April 2024. In April 2023, the inflation rate was recorded 2.7 percent. (Table A)
1.1 Main Drivers to the Upward Trend of Headline Inflation in the City of Lapu-Lapu
The main driver to the upward trend of the headline inflation rate for this commodity group in April 2024 was the faster annual increase of housing, water, electricity, gas and other fuels at 9.0 percent, alcoholic beverages and tobacco at 8.6 percent, and transport at 6.0 percent during the month from their respective inflation rates at 4.5 percent, 8.0 percent and 5.9 percent in March 2024.
On the contrary, slower annual increase was recorded in the indices of the following commodity group during the month:
a) Food and non-alcoholic beverages, 7.4 percent from 7.8 percent;
b) Furnishing, household equipment and routine household maintenance, 5.5 percent from 6.7 percent;
c) Health, 4.7 percent from 5.4 percent; and
d) Personal care, and miscellaneous goods and services, 16.9 percent from 17.2 percent.
Moreover, the indices of commodity groups that retained their previous month’s inflation were as follows:
a. Clothing and footwear, 14.1 percent;
b. Information and communication, 2.1 percent;
c. Recreation, sport and culture, 12.3 percent;
d. Education services, -0.1 percent;
e. Restaurants and accommodation services, 18.9 percent; and
f. Financial services, 0.0 percent.
1.2 Main Contributors to the Headline Inflation
The following commodity groups were the top three contributors to the April 2024 overall inflation for the bottom 30% income households in the City of Lapu-Lapu:
a) Food and non-alcoholic beverages with 40.3 percent share or 3.8 percentage points;
b) Restaurants and accommodation services with 21.4 percent share or 2.0 percentage points; and
c) Housing, water, electricity, gas and other fuels with 17.5 percent share or 1.6 percentage point.
2. Food Inflation
Food inflation rate for the bottom 30% income households in the City of Lapu-Lapu had a slower increase at 7.9 percent in April 2024 from 8.5 percent in the previous month. In April 2023, the food inflation stood at 6.0 percent. (Table 7)
2.1 Main Drivers to the Downtrend of Food Inflation
The downtrend in the food inflation was primarily driven by the slower annual increase in the indices of rice at 20.3 percent and milk, other dairy products and eggs at 9.8 percent in April 2024 from their respective inflation rates at 23.4 percent and 11.3 percent in March 2024. In addition, faster annual decrease in the index of fish and other seafood at 4.2 percent in April 2024 from no price movement. (Table 5)
Moreover, faster annual decrease was recorded in the index of corn at 3.7 percent April 2024 from 0.2 percent annual decline in March 2024, while slower annual increase in the index of flour, bread and other bakery products, pasta products, and other cereals at 4.5 percent in April 2024 from 5.3 percent in March 2024.
Faster annual decrease during the month was observed in the index of sugar, confectionery and desserts at 0.4 percent from 0.5 percent annual increase in March 2024.
In contrast, higher annual upticks were noted in the indices of the following food groups during the month:
a) Meat and other parts of slaughtered land animals, 5.8 percent from 5.4 percent;
b) Fruits and nuts, 19.7 percent from 15.6 percent;
c) Vegetables, tubers, plantains, cooking bananas and pulses, 14.8 percent from -3.0 percent; and
d) Ready-made food and other food products, 10.3 percent from 7.7 percent.
Meanwhile, the index of oils and fats retained their previous month’s rate at 0.1 percent.
2.2 Main Contributors to the Food Inflation
Food inflation contributed 39.8 percent or 3.7 percentage points to the April 2024 overall inflation for this particular income group.
Among the food groups, the main contributors to the 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 67.2 percent share or 5.3 percentage points;
b. Vegetables, tubers, plantains, cooking bananas and pulses with 10.4 percent share or 0.8 percentage point; and
c. Meat and other parts of slaughtered land animals with 9.7 percent share or 0.8 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
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
