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 eased to 3.7 percent in June 2024 from 3.9 percent in May 2024. This brings the national average inflation from January to June 2024 at 3.5 percent. In June 2023, inflation rate was higher at 5.4 percent. (Table A)
B. Central Visayas
1. Regional Inflation
Inflation in Central Visayas increase to 4.8 percent in June 2024 from 4.0 percent in May 2024. This brings the regional average inflation from January 2024 to June 2024 at 3.4 percent. In June 2023, inflation rate was higher at 5.0 percent. (Table A)
C. City of Mandaue
1. Headline Inflation
Inflation rate in Mandaue City increased to 7.4 percent in June 2024 from 7.3 percent in May 2024. The city’s average inflation rate from January to June 2024 stood at 7.1 percent. While in June 2023, the inflation rate in the city was lower at 2.3 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 June 2024 was primarily influenced by the faster year-on-year increase in the indices of housing, water, electricity, gas and other fuels at 17.4 percent, and food and non-alcoholic beverages at 6.0 percent from their respective inflation rates at 16.6 percent and 5.7 percent in the previous month. (Table 3)
In addition, faster annual increase of 3.7 percent was also noted in furnishings, household equipment and routine household maintenance index during the month from 3.4 percent in May 2024. (Table 3)
In contrast, slower annual increases were observed in the following commodity groups during the month:
a. Alcoholic beverages and tobacco, 8.0 percent from 8.8 percent;
b. Health, 4.4 percent from 5.3 percent;
c. Transport, 2.9 percent from 3.8 percent;
d. Recreation, sport and culture, 4.7 percent from 5.2 percent; and
e. Personal care, and miscellaneous goods and services, 4.0 percent from 9.7 percent. (Table 3)
Moreover, the indices of the following commodity groups retained their previous month’s annual growth rates:
a. Clothing and footwear, 0.5 percent;
b. Information and communication, 0.1 percent;
c. Education services, 0.0 percent;
d. Restaurants and accommodation services, 0.9 percent; and
e. Financial services, -0.4 percent. (Table 3)
1.2 Main Contributors to the Headline Inflation
The top three commodity groups contributing to the June 2024 headline inflation were the following:
a. Housing, water, electricity, gas and other fuels with 60.8 percent share or 4.5 percentage points;
b. Food and non-alcoholic beverages with 26.9 percent share or 2.0 percentage points; and
c. Transport with 2.9 percent share or 0.2 percentage point.
2. Food Inflation
Food inflation at the city level accelerated to 6.4 percent in June 2024 from 6.1 percent in May 2024. In June 2023, food inflation stood at 5.3 percent. (Table 7)
2.1 Main Drivers to the Upward Trend of Food Inflation
The acceleration of food inflation in June 2024 was mainly brought by faster year-on-year increases in rice at 18.0 percent, and vegetables, tubers, plantains, cooking bananas and pulses at 36.2 percent from their respective inflation rates at 16.3 percent and 33.2 percent in May 2024. (Table 5)
Additionally, faster annual increases were also observed in the indices of ready-made food and other food products N.E.C at 10.4 percent during the month from 9.3 percent May 2024, and corn at 6.7 percent in June 2024 from 9.4 percent annual drop in May 2024. (Table 5)
On the other hand, lower inflation rates were noted in the following food groups:
a. Flour, bread and other bakery products, pasta products, and other cereals, 2.8 percent from 3.2 percent;
b. Meat and other parts of slaughtered land animals, 5.1 percent from 6.3 percent;
c. Fish and other seafood, -13.3 percent from -12.5 percent;
d. Milk, other dairy products and eggs, -2.3 percent from 1.1 percent;
e. Oils and fats, 0.2 percent from 0.3 percent;
f. Fruits and nuts, 6.2 percent from 8.6 percent; and
g. Sugar, confectionery and desserts, -5.0 percent from -4.0 percent. (Table 5)
2.2 Main Contributors to the Food Inflation
Food inflation shared 26.2 percent or 1.9 percentage points to the overall inflation in June 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 81.4 percent share or 5.2 percentage points;
b. Vegetables, tubers, plantains, cooking bananas and pulses, with 29.5 percent share or 1.9 percentage point; and
c. Meat and other parts of slaughtered land animals, with 13.6 percent share or 0.9 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:
MELCHOR B. BAUTISTA
Chief Statistical Specialist
LGCS/MJDG
