The headline inflation rate in Agusan del Norte decreases at 1.7 percent in December 2024.

In December 2024, the inflation rate for the Province of Agusan del Norte decelerated to 1.7 percent from 2.0 percent in November 2024. This brings the provincial average inflation from January to December 2024 to 2.5 percent. In December 2023, the inflation rate was posted higher at 3.2 percent. (Figure 1, Table A and B)

Major Contributor to the December 2024 Inflation

Among the 13 commodity groups, the main driver of the downward trend of the overall inflation in December 2024 was the lower year-on-year growth rate of the heavily weighted Food and Non-Alcoholic Beverages at 2.7 percent during the month, from 4.0 percent in the previous month. While in December 2023, this commodity group recorded 5.6 percent inflation, which is higher than the current month. Its contribution to the overall inflation for December 2024 accounted 75.9 percent of the total share.

Major Contributor to the Year-on-Year Inflation Trend

Of the thirteen (13) commodity groups, Food and Non-Alcoholic Beverages heavily contributed to the downward trend in inflation in December 2024, with 2.7 percent inflation from 4.0 percent inflation in the previous month. This commodity group contributed 100.0 percent share to the overall inflation of the province.

Furthermore, the decrease was primarily attributed to the lower prices of cereals and cereal products with 6.2 percent inflation in the current month, from 10.7 percent in November 2024, particularly in the indices of rice.

Food Alone Inflation

In December 2024, the overall food inflation at the provincial level decreased to 2.7 percent from 4.2 percent in November 2024. In December 2023, food inflation was observed at a higher rate of 5.8 percent. The groups contributing to the downward inflation trend in the food category are as follows:

1)    Cereals and cereal products mainly influenced the downward trend of inflation in December 2024 at 6.2 percent from 10.7 percent in the previous month. This food group contributed 67.7 percent share to the overall food inflation of the province.

2)    Fish and other seafood (ND) also registered a lower inflation rate in Agusan del Norte's overall food inflation, decreasing to -6.3 percent in December 2024 from  -1.7 percent in November 2024. This category posted 27.5 percent share to the total food inflation.

The Purchasing Power of the Peso (PPP) in Agusan del Norte declined to Php 0.81 in December 2024, reflecting a further reduction in its value and the continued impact of inflation on consumer buying power.

In comparison, a peso in 2018 is now equivalent to only 81 centavos in December 2024. Consequently, consumers need Php 122.80 to acquire the same goods and services that were priced at Php 100.00 in 2018, highlighting the costlier economic environment driven by rising prices in the province.

TECHNICAL NOTES

The Philippine Statistics Authority generates and announces the monthly Consumer Price Index (CPI) based on the nationwide survey of prices for a given basket of goods and services. Two important indicators, the inflation rate and purchasing power of the peso (PPP), are derived from the CPI which are important in monitoring price stability and the value of the country’s currency.

The Consumer Price Index (CPI) is an indicator of the change in the average prices of goods and services commonly purchased by consumers relative to a base year. It shows how much on the average prices of goods and services have increased or decreased from a particular reference period known as base year.

Inflation Rate refers to the rate of change in the average price level as measured by the CPI between two periods. It is interpreted in terms of declining purchasing power of money.

The Purchasing Power of the Peso (PPP) indicates the value of the peso in the period under review as compared to the value of the peso in the base period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.

Approved by:

(Sgd.) REYNELO S. MAGNO
Chief Statistical Specialist, PSO – Agusan del Norte
Telephone number: (085) 817-3193 / Telefax No.: (085) 225 – 2097 Email address: agusandelnorte@psa.gov.ph