Table A. Year-on-Year Inflation Rates for the Bottom 30% Income Households, All Items In Percent (2018=100)

Source: Philippine Statistics Authority, Retail Price Survey of Commodities for the Generation of Consumer Price Index

A.    The Philippines

The country’s inflation rate for the bottom 30% income households increased to 3.4 percent in October 2024 from 2.5 percent in September 2024. In, October 2023, the inflation rate was posted at 5.3 percent. (Table A and Figure 1)

B. Central Visayas

1.    Regional Inflation

Following the trend at the national level, inflation rate for the bottom 30% income households in Central Visayas increased to 3.6 percent in October 2024 from 1.8 percent in September. In October 2023, the inflation rate in the region recorded at 4.1 percent. (Table A)

C. City of Cebu

1. Headline Inflation

The headline inflation rate for the bottom 30% income households in the City of Cebu had a faster increase of 3.9 percent in October 2024 from 3.4 percent in September 2024. In October 2023, the inflation rate was recorded 4.9 percent. (Table A and Figure 1)

1.1    Main Drivers to the Upward Trend of Headline Inflation in the City of Cebu

The main source to the upward trend of the headline inflation rate for this income group in October 2024 was the faster year-on-year increase of food and non-alcoholic beverages at 5.6 percent from 3.9 percent in the previous month. (Table 3)

In contrast, slower annual increments were recorded in the following commodity group during the month:

a.    Clothing and footwear, 0.3 percent from 0.4 percent;
b.    Furnishings, household equipment and routine household maintenance, 2.5 percent from 4.5 percent;
c.    Health, 2.1 percent from 2.4 percent; and
d.    Personal care, and miscellaneous goods and services, 3.2 percent from 4.1 percent. (Table 3)

Faster annual decrease was also noted in transport index at 1.2 percent in October 2024 from 1.4 percent annual increase in September 2024. (Table 3)

Moreover, the indices of commodity groups that retained their previous month’s inflation were as follows:

a.    Alcoholic beverage and tobacco, 0.3 percent;
b.    Housing, water, electricity, gas and other fuels, 4.7 percent;
c.    Recreation, sport and culture, 1.3 percent;
d.    Education services, 3.1 percent; and
e.    Restaurants and accommodation services, 2.1 percent. (Table 3)

Meanwhile, the indices with no price movement were information and communication, and financial services. (Table 3)

1.2    Main Contributors to the Headline Inflation

The following commodity groups were the top three contributors to the October 2024 overall inflation for the bottom 30% income households in the City of Cebu:

a.    Food and non-alcoholic beverages with 65.0 percent share or 2.5 percentage points;
b.    Housing, water, electricity, gas and other fuels with 23.9 percent share or 0.9     percentage point; and
c.    Restaurants and accommodation services with 7.3 percent share or 0.3 percentage point.

2. Food Inflation

Food inflation rate for the bottom 30% income households in the City of Cebu had a faster annual increase at 5.9 percent in October 2024 from 4.0 percent in September. In October 2023, the food inflation stood at 5.3 percent. (Table 7)

2.1    Main Drivers to the Uptrend of Food Inflation

The uptrend in the food inflation during the month was primarily driven by the faster year-on-year increases of corn at 58.9 percent, fish and other seafood at 4.9 percent, and vegetables, tubers, plantains, cooking bananas and pulses at 12.5 percent from their previous month’s respective inflation rates at 12.9 percent, 0.7 percent, and 3.1 percent. (Table 5)

Slower annual decrease was also noted in sugar, confectionary and desserts index at 1.9 percent in October 2024 from 3.1 percent annual drop in the previous month while rice had a faster year-on-year increase at 4.5 percent from 4.0 percent in September 2024.

In contrast, slower annual increments were recorded in the following food groups during the month:

a.    Flour, bread and other bakery products, pasta products, and other cereals, 0.8 percent from 1.1 percent;
b.    Meat and other parts of slaughtered land animals, 2.3 percent from 4.2 percent;
c.    Milk, other dairy products and eggs, 6.8 percent from 8.4 percent;
d.    Fruits and nuts, 14.3 percent from 17.3 percent; and
e.    Ready-made food and other food products not elsewhere classified,5.2 percent from 6.2 percent. (Table 5).

Meanwhile, oils and fats index retained its previous month’s inflation rate at 2.3 percent annual decline. (Table 5)

2.2 Main Contributors to the Food Inflation

Food inflation contributed 63.6 percent share or 2.5 percentage points to the October 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 56.0 percent share or 3.3 percentage points;
b.    Fish and other seafood with 11.4 percent share or 0.7 percentage point; and
c.    Vegetables, tubers, plantains, cooking bananas and pulses with 10.3 percent share or 0.6 percentage point.

Table B. Year-on-Year Inflation Rates for the Bottom 30% Income Households in the City of Cebu, All Items In Percent January 2019 – October 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

MJG/KST