A.    Caraga

1.    Headline Inflation

Headline Inflation in Caraga Drops to 1.5 percent in December 2024, Averaging     2.6 percent for the Year

The headline inflation rate for all income households in the Caraga region decreased to 1.5 percent in December 2024, down from 1.7 percent in November 2024. This brings the region's average inflation for January to December 2024 to 2.6 percent. In comparison, the inflation rate in December 2023 stood significantly higher at 4.1 percent. (Refer to Table A, Table B, and Figure 1 for more details).
Among the 13 commodity groups, the significant decline in the inflation rate for Food and Non-alcoholic Beverages emerged as the primary factor behind the decrease in Caraga’s overall inflation in December 2024. Average prices in this category dropped to 1.5 percent down from 2.5 percent in November 2024.

Additionally, Restaurants and Accommodation Services contributed to the decline, with inflation in this group falling to 0.6 percent in December 2024 from 0.9 percent in the previous month. This combined effect across key commodity groups underpinned the region's lower overall inflation rate.

On the other hand, higher annual growth rates were observed in the indices of the following commodity groups during the month:

a.    Alcoholic Beverages and Tobacco, 5.0 percent from 4.6 percent;
b.    Clothing and Footwear, 1.8 percent from 1.7 percent;
c.    Housing, Water, Electricity, Gas and Other Fuels, 1.5 percent from 1.4 percent;
d.    Furnishings, Household Equipment and Routine Household Maintenance, 1.5      percent from 1.4 percent;
e.    Health, 1.6 percent from 1.4 percent;
f.    Transport, 0.4 percent from -1.9 percent; and
g.    Personal care, and miscellaneous goods and services, 3.1 from 3.0 percent.

Meanwhile, commodity groups that exhibited consistent rates were noted in the following:

a.    Information and Communication, 1.3 percent;
b.    Recreation, Sport and Culture, 3.8 percent;
c.    Education services, 1.9 percent; and
d.    Financial services, -0.3 percent.

2.    Food Inflation

Regional Food Inflation Falls to 1.5 percent in December 2024

Food inflation for all income households in the Caraga region continued its downward trend, dropping to 1.5 percent in December 2024 from 2.5 percent in November 2024. This marks a substantial decline compared to December 2023, when food inflation was recorded at a significantly higher rate of 7.2 percent.

The decline in food inflation in Caraga for December 2024 was primarily driven by significant reductions in the inflation rates of key food categories:

A.   Cereals and Cereal Products: The year-on-year growth rate in this category feel to 0.7 percent from 1.9 percent in November 2024, with rice indices showing a sharp decline to 0.4 percent from 1.9 percent. 
B.    Fish and Other Seafood: Inflation decreased markedly to 1.4 percent from 3.7 percent, largely due to lower annual average prices of specific fish, particularly Oceanic Bonito (Tulingan Puti).
C.    Milk, Other Dairy Products, and Eggs: The inflation rate decelerated to 4.2 percent from 6.1 percent in the previous month, driven mainly by reductions in the annual average prices of eggs.

Furthermore, inflation reductions were observed in the following food groups:

A.   Vegetables, Tubers, Plantains, Cooking Bananas, and Pulses: Inflation declined further to -1.9 percent from -0.8 percent.
B.   Ready-Made Food and Other Food Products: Inflation slowed to 4.3 percent from     4.9 percent.

On the contrary, upward trend were recorded during the month in the indices of the following food groups:

a.    Corn, 0.5 percent from -0.5 percent;
b.    Meat and other parts of slaughtered land animals, 2.6 percent from 2.5 percent;
c.    Oils and fats, 4.5 percent from 1.6 percent;
d.    Fruits and nuts, 6.5 percent from 5.1 percent; and
e.    Sugar, confectionery and desserts, -5.5 percent from -7.5 percent.

B.    Provinces and Highly Urbanized City (HUC)

Inflation Trends Vary Across Caraga Provinces and Butuan City in December 2024

In December 2024, inflation trends across the Caraga region exhibited variation among its five provinces and one Highly Urbanized City (HUC). Notably, Surigao del Norte and Butuan City recorded increases in their inflation rates. Surigao del Norte's inflation rose to 2.5 percent from 1.4 percent in the previous month, while Butuan City experienced a slight increase to 0.4 percent from 0.3 percent.
For the year, Surigao del Sur recorded the highest average annual inflation rate at 4.2 percent, reflecting continued price pressures. In contrast, Butuan City registered the lowest average annual inflation rate at 1.0 percent, indicating relatively stable price levels in the urban center. (Refer to Table A.)

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

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