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)
Source: Philippine Statistics Authority, Retail Price Survey of Commodities for the Generation of Consumer Price Index
A. The Philippines
The Philippines’ headline inflation or overall inflation increased to 2.3 percent in October 2024 from 1.9 percent in September 2024. This brings the national average inflation rate from January to October 2024 to 3.3 percent. In October 2023, the inflation rate was higher at 4.9 percent. (Table A)
B. Central Visayas
1. Regional Inflation
Following the trend at the national level, the headline inflation in Central Visayas also increased to 2.9 percent in October 2024 from 2.1 percent in September 2024. This brings the regional average inflation from January to October 2024 to 3.3 percent. In October 2023, inflation rate was higher which posted at 4.1 percent. (Table A)
C. City of Lapu-Lapu
1. Headline Inflation
Lapu-Lapu City’s headline inflation rate slowed down further to 2.6 percent in October 2024 from 4.3 percent in September 2024. This brings the city’s average inflation from January to October 2024 to 4.9 percent. In October 2023, inflation rate stood at 4.9 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 October 2024 were primarily brought by the slower year-on-year increases of the indices of restaurants and accommodation services at 1.1 percent; housing, water, electricity, gas and other fuels at 5.0 percent; and personal care, and miscellaneous goods and services at 3.4 percent from their respective inflation rates at 14.4 percent, 8.4 percent, and 4.7 percent in the previous month. (Table 3)
Furthermore, slower annual increments were also recorded in the indices of the following commodity groups:
a. Information and communication, 0.1 percent from 1.4 percent;
b. Health, 1.6 percent from 2.7 percent;
c. Recreation, sport and culture, 2.8 percent from 4.1 percent;
d. Furnishings, household equipment and routine household maintenance, 1.0 percent from 1.3 percent;
e. Alcoholic beverages and tobacco, 2.7 percent from 3.1 percent; and
f. Clothing and footwear, 2.1 percent from 2.3 percent.
On the contrary, faster year-on-year increase was noted in food and non-alcoholic beverages at 2.9 percent in October 2024 from 1.5 percent in September 2024. Transport commodity group recorded a slower annual decrement 0.9 percent during the month from annual drop of 4.0 percent in the previous month.
Education services, and financial services retained their previous month’s inflation rates at 1.1 percent, and 0.0 percent; respectively.
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 46.6 percent share or 1.2 percentage points;
b. Food and non-alcoholic beverages with 38.4 percent share or 1.0 percentage point; and
c. Personal care, miscellaneous goods and services with 5.3 percent share or 0.1 percentage point.
2. Food Inflation
Food inflation in the city increased to 3.1 percent in October 2024 from 1.5 percent in September 2024. In October 2023, food inflation was higher which recorded at 4.9 percent. (Table 7)
2.1 Main Drivers to the Upward Trend of Food Inflation
The uptrend of food inflation in October 2024 was mainly brought by the faster annual increase of corn index at 62.0 percent from no price movement in the previous month. Slower year-on-year decreases were noted in the indices of vegetables, tubers, plantains, cooking bananas and pulses at 8.9 percent, and fish and other seafood at 2.0 percent from their respective annual decline food inflation rates at 24.0 percent and 6.1 percent in the previous month. (Table 5)
In addition, rice index recorded a faster annual increment at 5.7 percent during the month from 4.8 percent in September 2024.
On the contrary, lower food inflation rates were observed in the indices of the following food groups during the month:
a. Flour, bread and other bakery products, pasta products and other cereals, 0.9
percent from 1.7 percent;
b. Meat and other parts of slaughtered land animals, 2.9 percent from 6.9 percent;
c. Milk, other dairy products and eggs, 3.3 percent from 5.3 percent;
d. Fruits and nuts, 15.7 percent from 20.2 percent;
e. Sugar, confectionery and desserts, 3.0 percent from 4.0 percent; and
f. Ready-made food and other food products not elsewhere classified, 4.8 percent
from 6.1 percent.
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 36.9 percent or 1.0 percentage point to the overall inflation in October 2024. Food groups with highest contribution to 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 70.4 percent share or 2.2 percentage points;
b. Fruits and nuts, with 21.5 percent share or 0.7 percentage point; and
c. Meat and other parts of slaughtered land animals, with16.5 percent share or 0.5 percentage point.
Table B. Year-on-Year Inflation Rates in the City of Lapu-Lapu, All Items In Percent January 2020 – 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
KST/MLA
