A.    Caraga

1.    Overall Inflation

The region’s inflation rate for the bottom 30% income household decelerated to 1.5 percent in September 2024 from 3.4 percent in August 2024. This brings the regional average inflation for this income group from January to September 2024 to 4.2 percent. In September 2023, the inflation rate was posted higher at 6.5 percent. (Figure 1, Table A and B)

The main driver of the downward trend of the overall inflation for this income group in September 2024 was the lower year-on-year growth rate of the heavily weighted food and non-alcoholic beverages at 2.5 percent during the month from 6.0 percent in the previous month. This was followed by transport at -4.6 percent from -2.2 percent in the previous month. Moreover, lower annual increments were recorded in the indices of recreation, sport and culture at 5.0 percent from 6.8 percent in August 2024.

Also contributing to the downward trend in inflation during the period were observed in the following commodity groups during the month:

a.    Clothing and footwear, 2.1 percent from 2.2 percent;
b.    Furnishings, household equipment and routine household maintenance, 1.5 percent from 1.9 percent;
c.    Health, 1.6 percent from 1.9 percent;
d.    Information and communication, 1.6 percent from 1.7 percent;
e.    Education services, 0.2 percent from 2.3 percent;
f.    Restaurant and accommodation services, 1.8 percent from 1.9 percent; and
g.    Personal care, and miscellaneous goods and services, 3.1 percent from 3.2 percent.

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

a.    Alcoholic beverages and tobacco, 3.4 percent from 3.1 percent; and 
b.    Housing, water, electricity, gas and other fuels, -1.3 percent from -3.5 percent.

Among the 13 commodity groups, only financial services retained its previous month’s annual growth rate of -0.4 percent.

Overall food inflation for the bottom 30% income households at the regional level slowed down to 2.6 percent from 6.3 percent in the previous month’s rate. In September 2023, food inflation was observed at a higher rate of 10.5 percent. (Table D)

The downward trend in food inflation in September 2024 was mainly influenced by the lower year-on-year growth rate of cereals and cereal products at 4.9 percent during the month from 16.3 percent in August 2024. The main contributor to the downtrend of the cereals and cereal products food group was the slow growth of rice index, at 4.6 percent from 19.0 percent. This was followed by vegetables, tubers, plantains, cooking bananas, and pulses posted at                -6.7 percent from -2.5 percent in the previous month. In addition, the indices of the food groups of ready-made food and other food products not elsewhere classified recorded a lower annual increment, at 5.3 percent from 6.0 percent in August 2024.

Additionally, the following food groups also contributed to the downward trend in the September 2024 inflation:

a.    Corn, 8.4 percent from 14.7 percent; and 
b.    Meat and other parts of slaughtered land animals, 1.4 percent from 1.6 percent.

On the contrary, higher inflation rates were recorded during the month in the indices of the following food groups:

a.    Flour, bread and other bakery products, pasta products, and other cereals, 3.2 percent from 2.8 percent;
b.    Fish and other seafood, -0.7 percent from -4.6 percent;
c.    Milk, other dairy products and eggs, 8.9 percent from 5.3 percent;
d.    Oils and fats, -2.9 percent from -3.0 percent;
e.    Fruits and nuts, 13.1 percent from 7.5 percent; and
f.    Sugar, confectionery and desserts, -12.0 percent from -12.2 percent.

B.    Provinces and Highly Urbanized City (HUC)

In September 2024, all the provinces and one Highly Urbanized City in the region posted a decrease in the overall inflation.

Among the five provinces and one HUC, Dinagat Islands registered the highest inflation rate at 3.7 percent, while Butuan City registered the lowest inflation rate at 0.1 percent in September 2024. (Table A)

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Note:
CPIs and inflation rates by province and selected city are posted on the PSA website (http://openstat.psa.gov.ph/).

GUILLERMO M. LIPIO, JR.
(Chief Statistical Specialist)
Officer-In-Charge
PSA RSSO XIII