Summary Inflation Report Consumer Price Index (CPI) (2018=100) Butuan City April 2024

The headline inflation rate in Butuan City  surged to 1.4 percent

In April 2024, Butuan City experienced a rise in its annual headline inflation rate, climbing from 1.1 percent in March to 1.4 percent. Nevertheless, this month's inflation rate signifies a decline of 3.7 percentage points in comparison to the corresponding month in the previous year, which saw an inflation rate of 5.1 percent.

Major Contributors to the April 2024 Inflation

The following groups mainly contributed to this month’s inflation. These are:

1.    The Food and Non-Alcoholic Beverages sector held the most significant portion, accounting for approximately 208.6 percent of the overall inflation in Butuan City. The inflation rate for this category rose from 5.2 percent last month to 5.5 percent this month.

2.    The inflation rate for the Transport sector in Butuan City took the second spot, accounting for around 13.1 percent of the total inflation. This category experienced a rise of 1.5 percent this month compared to zero percent inflation in the preceding month.

3.    Restaurants and Accommodation Services occupied the third position in contributing to the overall inflation in Butuan City, accounting for   approximately
9.1 percent. Despite being at the forefront, the inflation rate within this category declined from 3.1 percent in March 2024 to 1.5 percent in April 2024.

Main Contributors to the Year-on-Year Inflation Trend

Among the thirteen (13) commodity groups, these top three (3) groups have significantly contributed to the increased inflation in Butuan City for the period April 2024. These are the following:

1)    The transportation group experienced a significant increase in inflation rates, rising from 0.0 percent in March 2024 to 1.5 percent in April 2024. This group’s inflation contributed significantly, making up 38.8 percent of the overall inflation trend.

2)    The Food and Non-Alcoholic Beverages category experienced a rise in inflation, climbing from 5.2 percent last month to 5.5 percent this month. This category contributed to around 33.6 percent of the total inflation rate.

3)    The Housing, Water, Electricity, Gas, and Other Fuels group, despite being in deflation, saw a marginal reduction in inflation, standing at -10.1 percent this month compared to -10.6 percent last month. This group accounted for around 24.3 percent share of the inflation trend.

Inflation Rate by Commodity Group

The   following   are   the   inflation   rate   by   commodity  groups   for  this month
April 2024 :
a.    Food and Non-Alcoholic Beverages from 5.2 percent in March 2024 to 5.5 percent in April 2024;
b.    Alcoholic Beverages and Tobacco from 5.3 percent in the previous month dropped to 4.3 percent this month;
c.    Clothing and Footwear at 0.9 percent in March 2024 up to 1.0 percent in April 2024;
d.    Housing, Water, Electricity, Gas and Other Fuels registered at -10.6 percent in March 2024 to -10.1 percent in April 2024;
e.    Furnishings, Household Equipment and Routine Household Maintenance slowed down to 0.9 percent this month from 1.1 percent last month;
f.    Health increased at 2.4 percent from 2.1 percent;
g.    Transport increased to 1.5 percent this month from 0.0 percent last month;
h.    Information and Communication remained stable at -0.1 percent from March 2024 inflation;
i.    Recreation, Sport and Culture decelerate to 2.8 percent in April 2024    from
3.6 percent in March 2024;
j.    The Education Services group has exhibited a steady inflation rate of 2.7 percent from March 2024 inflation;
k.    Restaurants and Accommodation Services down to 1.5 percent in April  2024 from 3.1 percent in March 2024;
l.    Financial Services also stable at 0.0 percent; and lastly
m.    Personal Care, and Miscellaneous Goods and Services remained stable   at
2.0 percent from March 2024 inflation.

Food Alone Inflation

In Butuan City, the food inflation rate rose to 5.8 percent in April 2024 from the previous month's 5.4 percent. Nevertheless, this current rate marks a notable decrease of 0.8 percent compared to the 6.6 percent recorded in April 2023.

Among the food groups, the main drivers of the high inflation were the following:

a.    Fish and other seafood, registered the highest share to inflation trend recorded at 62.2 percent. This food group’s inflation registered at -0.9 percent this month from -4.5 percent in the previous month. This increase was primarily driven by the rise in the prices of fresh fish such as Tamban.

b.    Vegetables, tubers, plantains, cooking bananas, and pulses saw a surge in inflation, rising to 0.1 percent this month from -4.9 percent in the previous month. The spike in prices of vegetables and tubers, particularly onions, was the primary driver of this inflation uptick. As a result, this specific food category made a substantial 34.5 percent contribution to the overall food inflation trend.

c.    Furthermore, the category encompassing Ready-made food and other food products n.e.c. experienced a surge in inflation from 3.4 percent in March 2024 to 4.2 percent in April 2024. This increase in inflation within the aforementioned category was predominantly fueled by the heightened  costs of various spices, particularly ginger. Notably, this particular group accounts for a 3.3 percent contribution to the overall upward trend in food inflation.

In Butuan City, the purchasing power of the peso (PPP) has remained constant since December 2023. Despite fluctuations in inflation that may affect currency values, the PPP has sustained a stable rate of Php 0.81.

To elaborate, the worth of a peso in 2018 has undergone a depreciation to 81 centavos by December 2023 through April 2024. Consequently, it takes Php123.2 to procure comparable commodities and amenities that cost Php100.00 previously in 2018.

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 retail prices of a fixed basket of goods and services commonly purchased by households 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 prices of goods and services typically purchased by consumers. It is interpreted in terms of declining purchasing power of money.

Disinflation refers to a situation where the general level of prices is increasing but at a decreasing rate.

Deflation refers to a situation where the general level of prices is falling and the rate is below zero percent.

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.

Statistical Table refers to the statistical data presenting a reference table for the CPI, and Inflation Rate of each commodity groups and food items that are used for attachments.

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