A. Philippines
Inflation rate for the bottom 30% income households in the Philippines slowed down to 2.9 percent in November 2024 from 3.4 percent in October 2024. This brings the year-to-date inflation of the country at 4.3 percent. In November 2023, inflation rate posted at 4.9 percent. (Table A)
The main driver to the downward trend of inflation for this income group is the lower year-on-year growth rate in the heavily-weighted food and non-alcoholic beverages index at 3.3 percent in November 2024 from 3.9 percent in October 2024.
B. Central Visayas
Similar to the national level, Central Visayas inflation rate for the bottom 30% income households slowed down to 3.1 percent in November 2024 from 3.6 percent in October 2024 bringing the year-to-date inflation at 4.2 percent. In November 2023, inflation rate in this income group was at 4.0 percent. (Table A)
In November 2024, only the Province of Cebu recorded an increase of inflation rates for the bottom 30% income households relative to their respective inflation rates in October 2024. Moreover, the rest of the provinces in Central Visayas recorded slower inflation rates. (Table A)
C. Province of Siquijor
1. Overall Inflation
Similar to the national and regional level, Province of Siquijor inflation rate for the bottom 30% income households continued to slow down to 1.4 percent in November 2024 from 2.5 percent in October 2024. This brings the year-to-date inflation to 5.1 percent. In November 2023, inflation rate posted at 8.3 percent. (Table A & B and Figure 1)
1.1 Main Drivers to the Downward Trend of the Overall Inflation
The downward trend of the overall inflation for the bottom 30% income households in November 2024 was primarily brought by the slower annual decline of the heavily weighted Food and Non-alcoholic beverages at 2.1 percent from 4.0 percent in October 2024. Likewise, slower annual rate was noted to the index of Personal care, and miscellaneous services at 3.6 percent from 4.6 percent in November 2024. Contributing also to the downtrend is the annual decline of restaurant and accommodation services at 1.1 percent in November 2024 from 1.3 percent in October 2024. (Table 3 & 4)
Additionally, the following commodity groups recorded lower annual rates compared to its previous month’s rate:
a. Clothing and Footwear, 1.1 percent from 1.2 percent; and
b. Recreation, Sport and Culture, 2.6 percent from 2.7 percent. (Table 3 & 4)
In contrast, higher annual rates were posted to the following commodity groups:
a. Alcoholic beverages and tobacco, 2.7 percent from 2.7 percent;
b. Housing, water, electricity, gas and other fuels, 2.4 percent from 2.2 percent;
c. Furnishings, household equipment and routine household maintenance, 1.8 percent from 1.5 percent; and
d. Transport, -5.0 percent from -6.6 percent. (Table 3 & 4)
Meanwhile, the indices of the following commodity groups retained their respective previous month’s annual rates:
a. Health, 3.5 percent;
b. Information and Communication, 0.6 percent;
c. Education services, 0.1 percent;
d. Restaurants and Accommodation Services, 1.3 percent; and
e. Financial services, -4.2 percent. (Table 3 and 4)
1.2 Main Contributors to the Headline Inflation
The top three main contributors to the November 2024 overall inflation for the bottom 30% income households in the province were the following:
a. Food and Non-alcoholic beverages with 85.3 percent share or 1.19 percentage points;
b. Housing, water, electricity, gas and other fuels with 13.4 percent share or 0.19 percentage point; and
c. Personal care, and miscellaneous services with 11.7 percent share or 0.16 percentage point.
2. Food Inflation
Food inflation for the bottom 30% income households at the provincial level recorded slower annual decline at 2.0 percent on November 2024 from 3.9 percent in October 2024. In November 2023, food inflation was at 12.0 percent. (Table 9)
2.1 Main Drivers to the Downward Trend of the Food Inflation
The deceleration of food inflation in the province in November 2024 was primarily brought by the decrease of the index in cereals and cereal products at 4.1 percent from 9.6 percent in October 2024. These can be attributed to the lower inflation rates in the indices of rice at 0.8 percent from 7.2 percent in October 2024 and corn at 9.4 percent in November 2024 from 9.4 percent in October 2024. Lower inflation rate in the index of fruits and nuts at 8.4 percent during month was also observed. Moreover, slower annual decline was observed to the index of ready-made food and other food products at 9.9 percent during the month from 10.4 percent in October 2024. (Table 5 & 9)
In addition, higher inflation rates were noted during the month to the following food groups:
a. Fish and other seafood, -3.4 percent from -3.5 percent;
b. Milk, other dairy products and eggs, 2.4 percent from 1.3 percent;
c. Vegetables, tubers, plantains, cooking bananas and pulses, 1.8 percent from -1.9 percent; and
d. Sugar, confectionery and desserts, -0.7 percent from -5.4 percent. (Table 5 & 9)
Furthermore, indices of the following food groups remained from the previous month’s record:
a. Meat and other parts of slaughtered land animals, -1.3 percent; and
b. Oil and fats, 0.2 percent. (Table 5 & 9)
2.2 Main Contributors to the Food Inflation
Among the food groups, the main contributors for 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 80.8 percent share or 1.62 percentage points;
b. Fruits and nuts with 21.4 percent share or 0.43 percentage point; and
c. Ready-made food and other food products n.e.c with 14.7 percent share or 0.29 percentage point.
TECHNICAL NOTES
Consumer Price Index (CPI)
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.
Bottom 30% Household
Families that belong in the low-income bracket and the most vulnerable to economic and social difficulties. Based on the “relative poverty” concept, a household whose per capita income falls below the bottom 30% of the cumulative per capita distribution belongs to the low-income group.
One of the common characteristics of households in this income group is that expenditures on food items account for a more substantial proportion of expenditures compared to expenditures on other items. Price changes in food, therefore, would be expected to greatly affect this income group more than any other group.
Uses of CPI
• The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso. It is a major statistical series used for economic analysis and as monitoring indicator of the government economic policy.
• Measures the composite change in the consumer prices in various commodities overtime.
Computation of CPI
The computation of CPI involves consideration of the following important points:
a. Base Period – The reference date or base period is the benchmark or reference date or period at which the index is taken as equal to 100.
b. Market Basket – A sample of the thousands of varieties of goods purchased for consumption and the services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers.
c. Weighting System – The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.
d. Formula – The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2018) weights.
e. Geographic Coverage – CPI values are computed at the national, regional, and provincial levels, and or selected cities.
Inflation Rate
The inflation rate is the annual rate of change, or the year-on-year change of CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of money.
Note: Statistical tables in excel file are provided as an attachment of this release.
Approved by:
(sgd.)
JOSELITO C. MAGHANOY
(Supervising Statistical Specialist)
Officer-in-Charge
