Headline Inflation

The headline inflation rate in the Province of Dinagat Islands continued its decline in October 2024, dropping to 2.1 percent from 2.3 percent in September 2024—a decrease of 0.2 percentage points. This indicates a significant drop of 3.6 percentage points from the 5.8 percent rate recorded in October 2023. The year-to-date inflation rate stands at an average of 4.3 percent, exceeding both the national average of 3.3 percent and the regional average of 2.8 percent (see Table A and Figure 1).

Main Drivers to the Downward Trend in Overall Inflation

The decline in the inflation rate for October 2024 is primarily driven by the Food and Non-alcoholic Beverages group, which registered a 3.6 percent inflation rate, accounting for approximately 45.5 percent of the overall decrease in provincial inflation. Additionally, the Transport group experienced a reduction in average price indices, resulting in a -3.5 percent inflation rate, down by 1.3 percentage points in the previous month, contributing about 30.9 percent to the overall downward trend.

Additionally, the Personal Care, miscellaneous goods and services group recorded a slower increase in the average price indices, particularly driven by the decrease in the prices of other appliances, articles and products for personal care, with an inflation rate of 0.1 percent compared to 1.4 percent in September 2024, contributing approximately 15.6 percent to the overall provincial inflation rate (refer to Tables B and C).

Other commodity groups experiencing a downtrend in average price indices included:

•    Clothing and footwear with decreased IR of 1.9 percent from 2.0 percent in the previous month;
•    Health with an inflation rate of -0.1 percent from 0.0 percent in September 2024;
•    Information and communication with an inflation rate of 0.1 percent from 0.4 percent in September 2024;
•    Recreation, sports, and culture with an inflation rate of 2.2 percent from   3.2 percent last month.

On the other hand, the following commodity groups exhibited fast increases in price indices this month:

•    Alcoholic Beverages and Tobacco: Registered an inflation rate of 4.7 percent, up from 4.3 percent in September 2024.
•    Furnishings, Household Equipment, and Routine Household Maintenance: Inflation Rate of 2.9 percent, up from 2.4 percent;
•    Restaurants and accommodation services recorded an inflation rate of 3.2 percent from 2.1 percent in September 2024.

Moreover, Housing, water, electricity, gas, and other fuels recorded a steady inflation rate for this month at 1.2 percent as well as education services and financial services and 0.0 percent.

Top Contributors to the Overall Provincial Inflation Rate

The following commodity groups were the top two contributors to the October 2024 overall inflation for all income households.

•    Food and Non-alcoholic beverages contributed about 64.0 percent or 2.18 percentage points of the total provincial inflation; 
•    Housing, water, electricity, gas, and other fuels, 16.7 percent share or 0.57 percentage points; 
•    Restaurants and accommodation services shared about 8.5 percent or 0.27 percentage points to total provincial inflation.

Food Index

The food index for October 2024 also noted a calmer increase in average prices, decreasing to 3.6 percent from 4.0 percent in September 2024.
The main drivers for the declining food index compared to the previous month include (see Table D):

1.    Cereals and Cereal Products (particularly rice): Recorded an inflation rate of 5.1 percent, lower from 8.2 percent in the previous month, contributing about 85.8 percent to the food inflation trend; and
2.    Milk, other dairy products and eggs: Registered an inflation rate of 3.5 percent, down from 5.8 percent in the previous month, contributing about 11.1 percent to the overall downtrend; and

Purchasing Power of Peso

The Purchasing Power of the Peso (PPP) for the Province of Dinagat Islands was pegged at Php 0.73 from April 2024 to the current month.

(Sgd.) VILLUZ C. OROZCO
(Supervising Statistical Specialist)
Officer-in-Charge