Inflation rate decelerated to 0.6 percent in December 2024

Table 1. Year-on-Year Inflation Rates in Apayao Province, All Items in Percent    December 2024 (2018=100)                                                                                                                           

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

The province’s inflation rate decelerated to 0.6 percent in December 2024 from              1.4 percent in November 2024. It is lower by 5.7 percentage points compared with the same month of the previous year at 6.3 percent and 0.8 percentage point lower than November 2024 at 1.4 percent. 

Figure 1. Year-on Year Inflation Rate, All Items in Percent, December 2023 – December 2024 (2018=100)

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

Table 2. Year-on-Year Consumer Price Index in Apayao, By Commodity Groups in Percent (2018=100)

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

The overall CPI increased from 127.9 of the same month of the previous year to    128.7 in December 2024, representing a 0.6 percent inflation rate. The data shows that the value of goods amounting to 100 pesos in the base year 2018 values               127.90 pesos in December 2023; 127.50 pesos in November 2024; and 128.70 pesos in December 2024. When the CPI decreases, it indicates that the average price level of goods and services has also decreased, and vice versa. (Table 2)

Table 3. Year-on-Year Inflation Rates in Apayao, By Commodity Groups in Percent (2018=100)

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

The commodity group which has the highest percentage share in the downtrend during the period is Food and Non-Alcoholic Beverages, which accounted for 1.0 percent inflation and had a 100 percent share in the overall trend.

Moreover, the following commodity sub-class which had the highest percent share in the trend during the month of December 2024 are:

1. Cereals with 96.1 percent;

2. Dates, figs, and tropical fruits, fresh with 2.4 percent;

3. Eggs with 0.8 percent;

4. Water with 0.2 percent;

5. Spices, culinary herbs and seeds with 0.2 percent;

6. Cane and beet sugar with 0.1 percent; and

7. Coffee and coffee substitutes with 0.1 percent.

However, the commodity groups which increased in their inflation rate are:

1. Alcoholic Beverages and Tobacco which increased by 1.4 percentage points;

2. Transport which increased by 1.2 percentage points;

3. Personal Care, and Miscellaneous Goods and Services which increased by 0.7 percentage points;

4. Health which increased by 0.4 percentage point;

5. Information and Communication which increased by 0.4 percentage points;

6. Restaurants and Accommodation Services which increased by                    0.4 percentage points;

7. Furnishings, Household Equipment and Routine Household Maintenance which increased by 0.3 percentage point;

8. Clothing and Footwear which increased by 0.2 percentage points;

9. Recreation, Sport, and Culture which increased by 0.2 percentage points; and

10. Housing, Water, Electricity, Gas and Other Fuels which increased by 0.1 percentage points.

(Table 3 and Figure 2)

On the other hand, the commodity groups with constant inflation compared to the previous month are:

1. Education Services; and

2. Financial Services 

 (Table 3 and Figure 2)

Figure 2. Inflation Rate of All Items by Commodity Groups, Comparison Between November 2024 and December 2024

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

Purchasing Power of Peso (PPP) recorded at 0.78 in December 2024

Purchasing power of peso continues to weaken through the years and reached       0.78 in December 2024. The PPP of 0.78 implies that the Php1.00 in the base year 2018 values only Php 0.78 in December 2024. A low purchasing power signifies that the currency has depreciated in value and can acquire a reduced amount of goods and services. Conversely, a high purchasing power of the peso indicates that the currency can purchase a greater quantity of goods and services. (Figure 3)

Figure 3. Purchasing Power of Peso in Apayao (2018=100): November 2018 – November 2024

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

DEFINITION OF TERMS

Consumer Price Index (CPI) measures the overall change in consumer prices based on a representative basket of goods and services over time.

Inflation refers to an overall increase in the Consumer Price Index (CPI), which is a weighted average of prices for different goods.

Purchasing power of the peso shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.

Commodity Groups are group of goods and services found in the market basket of the province. There are thirteen (13) commodity groups which were arranged according to the PCOICOP.

FNAB stands for Food and Non-Alcoholic Beverages

ABT stands for Alcoholic Beverages and Tobacco

CF stands for Clothing and Footwear

HWEGO stands for Housing, Water, Electricity, Gas, and Other Fuels

FHERHM stands for Furnishings, Household Equipment and Routine Household Maintenance

IC stands for Information and Communication

RSC stands for Recreation, Sport, and Culture

ES stands for Education Services

RAS stands for Restaurants and Accommodation Services

FS stands for Financial Services

PCMGS stands for Personal Care, Miscellaneous Goods and Services

Approved by:

sgd

GEOFFREY B. CALIMUHAYAN 

Chief Statistical Specialist

 LSBT