The inflation rate for the bottom 30% income households in the province decelerated to 5.0 percent in July 2024 from 5.5 percent in June 2024. This brings the average inflation for this income group from January to July 2024 to 6.2 percent. In July 2023, inflation rate was posted at 5.2 percent. (Tables A and B, and Figure 1)

The overall inflation downtrend for this income group in July 2024 was mainly driven by the slower annual increase in food and non-alcoholic beverages, which dropped to 7.4 percent from 8.9 percent in June 2024. Additionally, the inflation rate for restaurants and accommodation services significantly declined, registering a decrease of -0.4 percent compared to 0.9 percent in the previous month.

Additionally, lower annual increments were noted in the indices of the following commodity groups during the month: 

a. Transport, 4.1 percent from 4.5 percent; 

b. Health, 3.4 percent from 3.9 percent; and 

c. Furnishings, household equipment and routine household maintenance, 3.7 percent from 3.9 percent.

 On the contrary, higher annual growth rates were observed during the month in the indices of the following commodity groups: 

a. Alcoholic beverages and tobacco, 1.1 percent from 0.8 percent; 

b. Clothing and footwear, 2.7 percent from 2.6 percent; 

c. Housing, water, electricity, gas, and other fuels, -3.9 percent form -6.5 percent; 

d. Recreation, sport and culture, 13.4 percent from 12.7 percent; and 

e. Personal care, and miscellaneous goods and services, 4.8 percent from 4.6 percent. 

The indices of the rest of the commodity groups retained their respective previous month’s annual rates. (Tables C)

Food inflation at the provincial level slowed down to 7.9 percent in July 2024 from 9.4 percent in June 2024. In July 2023, food inflation was lower at 6.8 percent. (Table D) 

The deceleration of food inflation in July 2024 was primarily driven by the slower year-on-year increase in the rice index, which eased to 25.2 percent from 30.1 percent in the previous month. Additionally, the fish and other seafood index showed a faster annual decline of -6.3 percent, down from -1.9 percent in June 2024. Fruits and nuts also contributed to the overall downtrend, with an inflation rate of -4.4 percent in July 2024, compared to 1.5 percent in June 2024. 

Moreover, slower annual rates were noted in the indices of the following food groups during the month: a. Meat and other parts of slaughtered land animals, -3.1 percent from -2.7 percent; 

b. Milk, other dairy products and eggs, -7.0 percent from -6.5 percent; 

c. Oils and fats, -0.2 percent from 0.4 percent; and 

d. Sugar, confectionery and desserts, -16.9 percent from from -16.7 percent.

In contrast, higher annual growth rates were noted in the indices of the following food groups: 

 a. Corn, 21.3 percent from 20.0 percent; 

 b. Flour, bread and other bakery products, pasta products, and other cereals, 2.4 percent from 1.8 percent; 

 c. Vegetables, tubers, plantains, cooking bananas and pulses, 22.8 percent from 14.5 percent; and

 d. Ready-made food and other food products N.E.C., 8.5 percent from 7.4 percent. (Table D)

                                                             TECHNICAL NOTES

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 a monitoring indicator of government economic policy. 

Computation of CPI 

The computation of the CPI involves consideration of the following important points: 

a. Base Year/Period - A period, usually a year, at which the index number is set to 100. It is the reference point of the index number series. 

b. Market Basket - A sample of the thousands of varieties of goods purchased for consumption and 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 (2006) weights. 

e. Geographic Coverage - CPI values are computed at the national, regional, and provincial levels, and for selected cities.

 Note: CPIs and inflation rates by province and selected city are posted at the PSA website (https://openstat.psa.gov.ph/).

Approved for release: 

EMILY P. TOMOGDAN 

(Supervising Statistical Specialist) 

Officer-in-Charge