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 Benguet, 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 Benguet
By Commodity Groups
In percent
(2018=100)

1.Philippines

The Philippines’ headline inflation or overall inflation increased to 3.9 percent in May 2024 from 3.8 percent in April 2024. This brings the national average inflation from January to May 2024 to 3.5 percent. In May 2023, inflation rate was higher at 6.1 percent.

Main Drivers to the Upward Trend of the Headline Inflation

The uptrend in the overall inflation in May 2024 was primarily influenced by the higher year-on-year increase in the index of the housing, water, electricity, gas and other fuels at 0.9 percent during the month from 0.4 percent in April 2024. The faster annual growth of the transport index at 3.5 percent in May 2024 from 2.6 percent in April 2024 also contributed to the uptrend of the overall inflation.

In contrast, the following commodity groups registered lower inflation rates during the month: 
a.    Food and non-alcoholic beverages, 5.8 percent from 6.0 percent;
b.    Alcoholic beverages and tobacco, 4.2 percent from 4.9 percent;
c.    Clothing and footwear, 3.4 percent from 3.6 percent;
d.    Health, 2.9 percent from 3.0 percent;
e.    Recreation, sport and culture, 3.5 percent from 3.8 percent;
f.    Restaurants and accommodation services, 5.3 percent from 5.4 percent; and
g.    Personal care, and miscellaneous goods and services, 3.4 percent from 3.5 percent.

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

Main Contributors to the Headline Inflation

The top three commodity groups contributing to the May 2024 overall inflation were the following:

a.    Food and non-alcoholic beverages with 56.6 percent share or 2.2 percentage points;
b.    Restaurants and accommodation services with 13.2 percent share or 0.5 percentage point; and
c.    Transport with 8.2 percent share or 0.3 percentage point.

Food Inflation

Food inflation at the national level slowed down to 6.1 percent in May 2024 from 6.3 percent in April 2024. In May 2023, food inflation was higher at 7.5 percent.

Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in May 2024 was mainly brought about by the slower year-on-year increase in vegetables, tubers, plantains, cooking bananas and pulses index at 2.7 percent in May 2024 from 4.3 percent in the previous month. This was followed by rice with a slower annual increase of 23.0 percent during the month from 23.9 percent in April 2024. Fish and other seafood also contributed to the downtrend with zero percent inflation rate in May 2024 from 0.4 percent in April 2024.

2. Cordillera Administrative Region (CAR)

Contrary to the national trend, inflation in the region for all income households decreased to 4.4 percent in May, from the 4.6 percent in April 2024. In May 2023, inflation was lower at 3.9 percent. (Figure 1)
The main driver to the downward trend of the overall inflation for this income group in May 2024 was the lower year-on-year growth in the heavily-weighted housing, water, electricity, gas, and other fuels at 1.2 percent from 0.5 percent in the previous month. This was followed by food and non-alcoholic beverages which posted 6.7 percent during the month from 6.9 percent, and restaurants and accommodation services which registered 4.1 percent from 4.6 percent in the previous month. 

Lower annual increments were also noted in the indices of the following:
a.    Alcoholic beverages and tobacco, 3.9 percent from 4.4 percent;
b.    Clothing and footwear, 1.5 percent from 1.8 percent;
c.    Furnishings, household equipment and routine household maintenance, 3.4 percent from 3.7 percent
d.    Recreation, sports and culture, 1.3 percent from 1.6 percent; and
e.    Personal care, and miscellaneous goods and services, 2.7 percent from 2.9 percent.
Only health at 5.3 percent and transport at 5.8 percent increased for this month. Meanwhile, the indices of the rest of the commodity groups retained their respective previous month’s annual rates. 

Food Inflation

Food inflation for all income households at the regional level decreased to 7.0 percent from the 7.1 percent in the previous month. In May 2023, its annual increase was observed at 7.1 percent. 
Main Drivers to the Downward Trend of the Food Inflation
The downtrend in the food inflation was mainly due to the increase in meat and other parts of slaughtered land animals at -0.1 percent from
0.8 percent, fish and other seafood at 2.3 percent from 2.9 percent, and cereals and cereal products at 18.0 percent from 18.2 percent.

3. Benguet

Following the trend of the inflation regional level, inflation in Benguet further decreased to 4.7 percent in May 2024, from 5.0 percent in April 2024. In May 2023, inflation was lower at 3.7 percent.

The main driver in the downtrend of inflation for all income households in May 2024 was food and non-alcoholic beverages at 3.6 percent, from 4.1 percent in the previous month. This was followed by housing, water, electricity, gas and other fuels at 3.3 percent from 3.9 percent, and restaurants and accommodation services at 6.3 percent, from the 7.5 percent in the previous month.

Decreases were also observed in the index of the following:
a.    Alcoholic beverages and tobacco, 3.8 percent from 4.0 percent; 
b.    Clothing and footwear, 0.0 percent from 0.2 percent; 
c.    Furnishings, household equipment and routine household maintenance, 4.1 percent from 4.4 percent
d.    Recreation, sport and culture, 0.9 percent from 1.5 percent; and
e.    Personal care, and miscellaneous goods and services, 1.5 percent from 2.0 percent.
Only health at 9.0 percent and transport at 13.3 percent increased for this month. Meanwhile, the indices of the rest of the commodity groups retained their respective previous month’s annual rates.

Main Contributors to the Headline Inflation

The top three commodity groups contributing to the May 2024 overall inflation were the following: 
a.    Food and non-alcoholic beverages, 40.7 percent share or 2.4 percentage points;
b.    Transport, 25.8 percent share or 1.52 percentage points; and
c.    Housing, water, electricity, gas and other fuels, 23.2 percent share or 1.37 percentage points.
Food Inflation
Food inflation for all income households at the provincial level moved at a lower pace of 3.7 percent in May 2024 from 4.3 percent in the previous month. In May 2023, its annual increase was observed at 8.1 percent. 
Main Drivers to the Downward Trend of the Food Inflation
The downtrend in the food inflation was mainly due to the decrease in vegetable, tubers, plantains, cooking bananas and pulses at 3.7 percent from 7.8 percent. This was followed by meat and other parts of slaughtered land animals at -2.1 percent from -1.1 percent, and fish and other seafood at 0.9 percent from 2.0 percent. Decreases were also observed in the index of the following:
a.    Milk, other dairy products and eggs, 2.4 percent from 3.1 percent; and
b.    Sugar, confectionery and desserts, -2.9 percent from -2.7 percent.

The rest of the food groups increased their indices.

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