Table A. Year-on-Year Inflation Rates, All Items
In percent
(2018=100)

Figure 1. Inflation Rates in CAR, All Items
(2018=100)

_{Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index, Philippine Statistics Authority}

Figure 2. Inflation Rates in Baguio City, All Items
(2018=100)

_{Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index, Philippine Statistics Authority}

Table B. Year-on-Year Inflation Rates in Baguio City
By Commodity Groups
In percent
(2018=100)

1.    Philippines
The country’s inflation rate for the bottom 30% income households increased to 4.6 percent in March 2024 from 4.2 percent in February 2024. In March 2023, inflation rate was posted at 8.8 percent. 

Main Drivers to the Upward Trend of the Overall Inflation

The main driver to the upward trend of the overall inflation for this income group in March 2024 was the higher year-on-year growth of the heavily-weighted food and non-alcoholic beverages at 7.1 percent from 6.4 percent in the previous month. The slower annual decline of 2.5 percent in the housing, water, electricity, gas and other fuels index during the month from a 2.8 percent annual decrease in the previous month also contributed to the uptrend of the overall inflation for this income group.

In addition, higher annual increments were posted in transport at 2.2 percent during the month from 1.8 percent in February 2024, and recreation, sports and culture at 6.6 percent in March 2024 from 6.5 percent in the previous month.
In contrast, lower annual growth rates were noted in the indices of the following food groups during the month:
a.    Alcoholic beverages and tobacco, 7.6 percent from 9.5 percent;
b.    Clothing and footwear, 3.5 percent from 3.7 percent;
c.    Furnishings, household equipment and routine household maintenance, 3.6 percent from 4.0 percent;
d.    Health, 2.6 percent from 2.8 percent; and
e.    Personal care, and miscellaneous goods and services, 4.0 percent from 4.2 percent.
The indices of the rest of the commodity groups retained their respective previous month’s annual rates. 

Main Contributor to the Overall Inflation

The following commodity groups were the top three contributors to the March 2024 overall inflation for the bottom 30% income households:
a.    Food and non-alcoholic beverages, 82.8 percent share or 3.8 percentage points;
b.    Restaurants and accommodation services, 8.3 percent share or 0.4 percentage point; and
c.    Alcoholic beverages and tobacco, 4.2 percent share or 0.2 percentage point.
Food Inflation
Food inflation for the bottom 30% income households at the national level moved at a faster pace of 7.4 percent in March 2024 from 6.5 percent in the previous month. In March 2023, its annual increase was observed at 9.7 percent. 

Main Drivers to the Upward Trend of the Food Inflation

The uptrend in the food inflation was mainly due to the slower annual decrease in vegetables, tubers, plantains, cooking bananas and pulses at 5.4 percent during the month from 11.7 percent annual decrease in the February 2024. In addition, faster year-on-year increases were observed in the indices of cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, at 19.8 percent in March 2024 from 18.9 percent in the previous month, and meat and other parts of slaughtered land animals at 1.9 percent from 0.9 percent.

2. Cordillera Administrative Region (CAR)

Similar to the national trend, inflation in the region for the bottom 30% income households increased to 5.1 percent in March 2024, from 4.1 percent in February 2024. In March 2023, inflation was higher at 7.7 percent. (Figure 1)

The main driver to the upward trend of the overall inflation for this income group in March 2024 was the higher year-on-year growth in the heavily-weighted food and non-alcoholic beverages at 8.9 percent from 6.9 percent in the previous month. This was followed by transport, which posted a higher annual increase of 4.0 percent during the month from 3.5 percent in February 2024, and personal care and miscellaneous goods which registered 2.4 percent in March 2024 from 2.0 percent in the previous month.

Higher annual increments were also noted in the indices of the following:
a.    Housing, water, electricity, gas and other fuel, -1.5 percent from -1.6 percent;
b.    Furnishings, household equipment and routine household maintenance, 2.5 from 2.4 percent; and
c.    Health, 3.6 percent from 3.5 percent;
d.    Information and communication, 0.7 percent from 0.6 percent; and
e.    Restaurants and accommodation services, 3.5 percent from 3.1 percent.

In contrast, lower annual growth rates were noted in the indices of
a.    Alcoholic beverages and tobacco, 4.5 percent from 5.3 percent;
b.    Clothing and footwear, 2.1 percent from 2.4 percent; and
c.    Recreation, sport and culture, 4.0 percent from 4.5 percent.
The indices of education and financial services retained their respective previous month’s annual rates. 

Food Inflation

Food inflation for the bottom 30% income households at the regional level moved at a faster pace of 9.3 percent in March 2024 from 7.2 percent in the previous month. In March 2023, its annual increase was observed at 8.4 percent. 

Main Drivers to the Upward Trend of the Food Inflation

The uptrend in the food inflation was mainly due to the increase in vegetable, tubers, plantains, cooking bananas and pulses at -2.1 percent from -11.2 percent, cereals and cereal products at 21.7 percent from 20.2 percent, and fish and other seafood at 3.2 percent from 2.4 percent.

3. Baguio City

Following the trend of the inflation at the national and regional level, inflation in Baguio City further increased to 4.5 percent in March 2024, from 3.3 percent in February 2024. In March 2023, inflation was higher at 6.1 percent. (Table B and Figure 2)

The main driver in the uptrend of inflation for this group in March 2024 was housing, water, electricity, gas and other fuels at 2.0 percent, from 0.2 percent in the previous month. This was followed by food and non-alcoholic beverages at 6.2 percent from 4.8 percent, and restaurants and accommodation services at 9.5 percent from the 8.0 percent in the previous month.  Moreover, the following also increased during the month:
a.    Alcoholic beverages and tobacco, 5.5 percent from 5.1 percent; and
b.    Health, 2.4 percent from 2.1.

On the contrary, decreases were observed in the index of the following:
a.    Furnishings, household equipment and routine household maintenance, 4.6 percent from 4.7 percent; and
b.    Recreation, sport and culture, 3.1 percent from 3.6 percent;

Meanwhile, no change recorded for the rest of the commodity groups.

Food Inflation

Food inflation for the bottom 30% income households at the city level moved at a faster pace of 6.5 percent in March 2024 from 4.9 percent in the previous month. In March 2023, its annual increase was observed at 10.9 percent.
Main Drivers to the Upward Trend of the Food Inflation
The uptrend in the food inflation was mainly due to the increase in vegetable, tubers, plantains, cooking bananas and pulses at –2.2 percent from -14.2 percent, fish and other seafood at 4.3 percent from 0.5, and fruits and nuts at 15.9 percent from 14.1 percent.

On the contrary, decreases were observed in the index of the following:
a.    Cereals and cereal products, 15.4 percent from 17.5 percent;
b.    Meat and other parts of slaughtered land animals, 1.0 percent from 1.6 percent;
c.    Milk, other dairy products and eggs, -2.3 percent from 2.9 percent;
d.    Oils and fats, -3.2 percent from -2.9 percent;
e.    Sugar, confectionery and desserts, -7.4 percent from -6.8 percent; and
f.    Ready-made food and other food products n.e.c, 5.6 percent from 6.0 percent.

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

IMELDA L. BUYUCCAN (SGD)
Chief Statistical Specialist

/SMBP