September 2024 Siquijor rate of inflation eased further to 2.6 percent.
A. Philippines
The Philippines’ headline inflation or overall inflation slowed down further to 1.9 percent in September 2024. This is the lowest inflation rate since the 1.6 percent inflation rate recorded in May 2020. The inflation rate in August 2024 was recorded at 3.3 percent. This brings the national average inflation from January to September 2024 to 3.4 percent. In September 2023, the inflation rate was higher at 6.1 percent. (Table A)
The downtrend in the overall inflation in September 2024 was primarily brought about by the slower annual increment in the index of food and non-alcoholic beverages at 1.4 percent in September 2024 from 3.9 percent in the previous month. Also contributing to the downtrend was transport with a faster year-on-year decrease of 2.4 percent during the month from a 0.2 percent annual drop in August 2024. In addition, a slower inflation rate was recorded for housing, water, electricity, gas and other fuels during the month at 3.2 percent from 3.8 percent in August 2024.
B. Central Visayas
Inflation in Central Visayas decreased to 2.1 percent in September 2024 from 3.4 percent in August 2024. This brings the regional year to date inflation at 3.6 percent. In August 2023, inflation rate was higher at 4.1 percent.
For the month of September 2024, all four (4) provinces in Region VII recorded a decrease in inflation rate. Cebu decreased from 3.0 percent in August to 0.7 percent in September 2024, Bohol from 2.1 percent to 1.6 percent in Sept. 2024, Negros Oriental from 2.7 percent to 1.5 percent and Siquijor from 3.1 percent to 2.6 percent inflation rate.
C. Province of Siquijor
1. Headline Inflation
The headline inflation at the provincial level in September 2024 further slows down at 2.6 percent. This brings the year-to-date inflation of the province for 2024 to 3.7 percent. Comparing to the inflation in September 2023, Siquijor’s inflation rate was still higher at 7.1 percent. (Table A & B and Figure 1)
1.1 Main Drivers to the Downward Trend of the Inflation
The downward trend of the headline inflation for the month of September was primarily brought by the decrease in the index of the heavily weighted Food and Non-alcoholic beverages which recorded an inflation rate of 4.2 percent in September from 4.8 percent in August 2024. This was followed by the index of Transport at -5.6 percent from -3.6 percent in August 2024. Lastly, Housing, Water, Electricity, Gas and Other Fuels also contributed to the trend with 4.4 percent from 4.5 percent inflation rate in August 2024.
Additionally, the following commodity groups recorded a decrease in inflation rate compared to its previous months rate:
a. Clothing and Footwear at 2.0 percent from 2.1 percent;
b. Health at 2.4 percent from 2.8 percent;
c. Recreation, Sport and Culture at 1.8 percent from 2.7 percent;
d. Lastly, Personal Care, and miscellaneous goods and services at 5.1 percent from 5.2 percent. (Table 3 and 4)
Furthermore, indices of the following commodity groups in the province retained its previous month’s records:
e. Alcoholic beverages and tobacco at 2.2;
f. Furnishings, household equipment and routine household maintenance at 1.1;
g. Information and Communication at 0.2 percent;
h. Education services at 0.5;
i. Restaurants and Accommodation Services at 1.3;
j. Financial services at -0.1 percent. (Table 3 and 4)
No commodity group recorded an increase in its index for the month of September 2024.
1.2 Main Contributors to the Headline Inflation
The top three main contributors to the September 2024 overall inflation of 2.6 percent in the province were the following:
a. Food and Non-alcoholic beverages with 65.7 percent share or 1.71 percentage points;
b. Housing, water, electricity, gas and other fuels with 33.8 percent share or 0.88 percentage points; and
c. Personal Care, and miscellaneous goods and services with 8.4 percent share or 0.22 percentage point.
2. Food Inflation
Like the trend at the national level, the food inflation at the provincial level also decreased to 4.1 percent in September from 4.8 percent in August 2024. In September 2023, food inflation was higher at 10.3 percent. (Table 6 & 7)
2.1 Main Drivers to the Downward Trend of the Food Inflation
The deceleration of food inflation in the province in August 2024 was primarily brought by the decrease of the index of Rice at 1.5 percent from 12.0 percent in August 2024, followed by Vegetables, tubers, plantains, cooking bananas and pulses with an index of 2.2 percent from 3.8 percent in August 2024. Thirdly, index of ready-made food and other food products at 8.7 percent from 11.9 percent in August 2024.
Additionally, the index of Fruits and nuts also recorded a decrease at 12.5 percent from 14.5 percent in August 2024.
Moreover, the following food groups posted an increase in indices compared to the previous month:
a. Corn at 22.6 percent from 10.9 percent;
b. Meat and other parts of slaughtered land animals at -0.9 percent from -1.2 percent;
c. Fish and other seafood at 2.6 percent from 0.6 percent;
d. Milk, other dairy products and eggs at 2.6 percent from 2.0 percent;
e. Lastly, Sugar, confectionery and desserts at -6.8 percent from -7.8 percent. (Table 5)
Furthermore, the index of Oils and fats remained constant at 0.1 percent and index of Flour, Bread and Other Bakery Products, Pasta Products and Other Cereals at 3.5 percent inflation rate (Table 5)
2.2 Main Contributors to the Food Inflation
In September 2024, food shared at the provincial level 59.9 percent or 1.56 percentage points to the overall inflation. The main food items contributing to the September 2024 overall food inflation were the following:
a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 63.2 percent share or 2.59 percentage points;
b. Fruits and nuts with 15.9 percent share or 0.65 percentage points; and
c. Fish and Other Seafood with 11.1 percent share or 0.45 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.
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.
***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
