The inflation rate for the bottom 30% income households in the province further decelerated to 2.7 percent in September 2024 from 2.9 percent in August 2024. This brings the average inflation for this income group from January to September 2024 to 5.4 percent. In September 2023, inflation rate was higher at 6.3 percent. (Tables A and B, and Figure 1)

The overall inflation downtrend for this income group in September 2024 was primarily driven by a more rapid annual decline in housing, water, electricity, gas, and other fuels, which decreased to -6.3 percent from -4.2 percent in August 2024. Additionally, the inflation rate for transport saw a significant decline, dropping to -6.8 percent from -2.6 percent in the previous month.

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

a. Personal care, and miscellaneous goods and services, 1.6 percent

from 3.1 percent;

b. Recreation, sport and culture, 10.8 percent from 12.3 percent;

c. Furnishings, household equipment and routine household

maintenance, 2.6 percent from 3.3 percent;

d. Education services, 2.4 percent from 5.1 percent; and

e. Health, 2.8 percent from 3.3 percent.

On the contrary, higher annual increase were noted in the indices of the following commodity groups during the month:

a. Food and non-alcoholic beverages, 5.6 percent from 4.9 percent;

b. Alcoholic beverages and tobacco, 1.2 percent from 1.0 percent;

c. Clothing and footwear, 2.4 percent from 2.3 percent; and

d. Restaurants and accommodation services, -0.2 percent from

-0.4 percent.

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

At the provincial level, food inflation accelerated to 5.9 percent in September 2024, up from 5.1 percent in the previous month. However, it remained significantly lower than the 9.3 percent recorded in September 2023. (Table D)

The acceleration of food inflation in September 2024 was primarily driven by the faster year-on-year increase in the fish and other seafood index, which surged to 4.1 percent from -11.3 percent in the previous month. Meat and other parts of slaughtered land animals also contributed to the overall rise, with an inflation rate of -2.1 percent from -5.0 percent in August 2024.

Moreover, faster annual rates were observed in the indices of the following food groups during the month:

a. Milk, other dairy products and eggs, -2.1 percent from

-4.8 percent;

b. Fruits and nuts, -4.4 percent from -7.7 percent;

c. Oils and fats, 9.1 percent from 5.7 percent; and

d. Flour, bread and other bakery products, pasta products, and

other cereals, 1.9 percent from 1.8 percent.

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

a. Rice, 12.8 percent from 20.1 percent;

b. Corn, 15.1 percent from 20.0 percent;

c. Vegetables, tubers, plantains, cooking bananas and pulses,

8.0 percent from 22.7 percent;

d. Sugar, confectionery and desserts, -17.3 percent from

-16.5 percent; and

e. Ready-made food and other food products N.E.C., 6.4 percent

from 8.7 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

Chief Statistical Specialist