The inflation rate for the bottom 30% income households in the province further decelerated to 1.3 percent in October 2024 from 2.7 percent in September 2024. This brings the average inflation for this income group from January to October 2024 to 5.0 percent. In October 2023, inflation rate was higher at 8.0 percent. (Tables A and B, and Figure 1) 

The overall inflation downtrend for this income group in October 2024 was mainly driven by a sharper annual decrease in the food and non-alcoholic beverages index, which dropped to 4.0 percent from 5.6 percent in September. The inflation rate for housing, water, electricity, gas, and other fuels also saw a significant decline, falling to -10.2 percent from -6.3 percent in the previous month. Additionally, clothing and footwear contributed to the downtrend, with a faster annual decline of 2.2 percent in October compared to a 2.4 percent decrease in September. 

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

a. Furnishings, household equipment and routine household maintenance, 2.7 percent from 2.6 percent; 

b. Transport, -5.8 percent from -6.8 percent; and 

c. Personal care, and miscellaneous goods and services, 1.8 percent from 1.6 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 slowed to 4.1 percent in October 2024, down from 5.9 percent in the previous month. In October 2023, the inflation rate was significantly higher at 9.3 percent (Table D). 

The slowdown in food inflation in October 2024 was primarily driven by a slower year-on-year increase in the rice index, which dropped to 9.1 percent from 12.8 percent in September. Corn also contributed to the decline, with its inflation rate easing to 1.6 percent from 15.1 percent the previous month. 

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

a. Vegetables, tubers, plantains, cooking bananas and pulses, 6.5 percent from 8.0 percent; 

b. Ready-made food and other food products N.E.C., 3.7 percent from 6.4 percent; 

c. Oils and fats, 7.6 percent from 9.1 percent; and 

d. Flour, bread and other bakery products, pasta products, and other cereals, 1.8 percent from 1.9 percent.

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

a. Meat and other parts of slaughtered land animals, -1.7 percent from -2.1 percent; 

b. Fish and other seafood, 4.5 percent from 4.1 percent;   

c. Milk, other dairy products and eggs, 1.3 percent from  -2.1 percent; 

d. Fruits and nuts, 1.1 percent from -4.4 percent; and 

e. Sugar, confectionery and desserts, -14.3 percent from  -17.3 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