Summary Inflation Report Consumer Price Index Bottom 30% Income Households (2018=100) August 2024

A.    Caraga

1.    Overall Inflation

The region’s inflation rate for the bottom 30% income household decelerated to 3.4 percent in August 2024 from 5.4 percent in July 2024. This brings the regional average inflation for this income group from January to August 2024 to 4.5 percent. In August 2023, the inflation rate was posted higher at 5.3 percent. (Figure 1, Table A, and B)

The main driver of the downward trend of the overall inflation for this income group in August 2024 was the lower year-on-year growth rate of the heavily weighted food and non-alcoholic beverages at 6.0 percent during the month from 8.5 percent in the previous month. This was followed by transport at -2.2 percent from 0.9 percent in the previous month. Moreover, lower annual increments were recorded in the indices of housing, water, electricity, gas and other fuels at -3.5 percent from -2.0 percent in July 2024.

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

a.    Alcoholic beverages and tobacco, 3.1 percent from 3.5 percent;
b.    Clothing and footwear, 2.2 percent from 2.6 percent;
c.    Furnishings, household equipment and routine household maintenance, 1.9 percent from 2.4 percent;
d.    Health, 1.9 percent from 2.2 percent;
e.    Education services, 2.3 percent from 2.5 percent; and
f.    Personal care, and miscellaneous goods and services, 3.2 percent from 3.8 percent.

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

a.    Information and communication, 1.7 percent from 1.6 percent; 
b.    Recreation, sport and culture, 6.8 percent from 6.1 percent; and 
c.    Restaurants and Accommodation Services, 1.9 percent from 1.8 percent.
Among the 13 commodity groups, only financial services retained its previous month’s annual growth rate of -0.4 percent.

2.    Food Inflation

Overall food inflation for the bottom 30% income households at the regional level slowed down to 6.3 percent from 9.0 percent in the previous month’s rate. In August 2023, food inflation was observed at a higher rate of 7.2 percent. (Table D)

The downward trend in food inflation in August 2024 was mainly influenced by the lower  year-on-year growth rate of cereals and cereal products at 16.3 percent during the month from 22.1 percent in July 2024. The main contributor to the downtrend of the cereals and cereal products food group was the slow growth of rice index, at 19.0 percent from 27.9 percent. This was followed by fish and other seafood posted at -4.6 percent from -2.5 percent in the previous month. In addition, the indices of the food groups of vegetables, tubers, plantains, cooking bananas and pulses recorded a lower annual increment, at -2.5 percent from 1.5 percent in July 2024.

Moreover, the following food groups also contributed to the downward trend in the August 2024 inflation:

a.    Flour, bread and other bakery products, pasta products, and other cereals, 2.8 percent from 3.2 percent;
b.    Oils and fats, -3.0 percent from -1.8 percent;
c.    Sugar, confectionery and desserts, -12.2 percent from -11.9percent; and
d.    Ready-made food and other food products, 6.0 percent from 9.1 percent.

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

a.    Corn, 14.7 percent from 10.0 percent;
b.    Meat and other parts of slaughtered land animals, 1.6 percent from 1.1 percent;
c.    Milk, other dairy products and eggs, 5.3 percent from 5.0 percent; and
d.    Fruits and nuts, 7.5 percent from 5.2 percent.

B.    Provinces and Highly Urbanized City (HUC)

In August 2024, all the provinces and one HUC in the region posted a decrease in the overall inflation.

Among the five provinces and one HUC, Surigao del Sur registered the highest inflation rate at 5.5 percent, while Butuan City registered the lowest inflation rate at 1.4 percent in July 2024. (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