The headline deflation rate in Butuan City decreased to -0.2 percent.

In September 2024, Butuan City continued to experience deflation, with a rate of -0.2 percent compared to -0.3 percent in August 2024. Moreover, the inflation rate for this month reflects a decline of 3.3 percentage points from the same period last year, when it stood at 3.1 percent.

Major Contributors to the September 2024 Inflation

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

1.    Transport; this sector significantly contributed to the overall inflation rate in Butuan City, accounting for 220.9 percent of the inflation. This category continued to experience deflation, decreasing to -6.1 percent this month from -3.4 percent in August 2024.

2.    Housing, Water, Electricity, Gas and Other Fuels; this category secured the second position on the ranking, still on deflation but displaying a modest increase of -3.1 percent this month compared to -12.1 percent in August 2024. This particular group significantly influenced the overall inflation rate for the month, accounting for 210.4 percent of the total.

Major Contributor to the Year-on-Year Inflation Trend

Among the thirteen (13) categories of commodities, the Housing, Water, Electricity, Gas, and Other Fuels group played a significant role in mitigating the slight decrease in deflation in Butuan City. Continuing the discussion on deflation, this specific group exhibited a minor shift in deflation rates, dropping to -3.1 percent in September 2024 from -12.1 percent in August 2024. The inflation trajectory of this group was primarily influenced by the marginal rise in electricity prices, transitioning from -45.7 percent in August 2024 to -14.9 percent in September 2024. Electricity was responsible for approximately 98.4 percent of the inflationary impact within this particular commodity category. This category contributed a significant portion, amounting to 100.0 percent, to the overall inflation trend observed in Butuan City during the period of September 2024.

Food Alone Inflation

In Butuan City, the food inflation rate decreased to 1.3 percent in September 2024 from the previous month's 3.8 percent. Nonetheless, this current rate signifies a significant decline of 4.8 percent compared to the 6.1 percent recorded in September 2023.

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

a.    Cereals and cereal products (ND) were the primary drivers behind the decrease in inflation within the food category, exhibiting a notable drop from 12.6 percent to 2.1 percent this month. The decline in  prices of  rice  and corn played a significant role in this overall decrease. Rice experienced an inflation rate of 1.5 percent, marking a substantial decrease of 14.1 percentage points from the 15.6 percent observed in August 2024. Similarly, corn also saw a decrease in inflation, dropping to 16.6 percent from the previous month's 18.0 percent. This particular food category accounted for  a significant 87.5 percent of the food inflation trend in Butuan City.

b.    Vegetables, tubers, plantains, cooking bananas, and pulses ranked second on the list, showing a notable deflation of -12.3 percent this month compared to -4.2 percent in August 2024. The reduced prices of certain vegetables, particularly tomatoes, significantly contributed to the decreased inflation within this category. This group accounted for about 12.2 percent  to the inflation trend within this category.

Purchasing Power of the Peso in Butuan City depreciated to Php 0.81 in September 2024

In Butuan City, renowned for its dynamic market ambiance and thriving economic undertakings, the purchasing power of the peso (PPP) exhibited a decline in September 2024, standing at Php 0.81.

To elaborate further, the worth of a peso in 2018 has undergone a depreciation to 81 centavos in September 2024 in Butuan City. As a result, it now necessitates Php122.7 to procure equivalent goods and services that were priced at Php100.00 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