Summary Inflation Report Consumer Price Index (2018=100) January 2024

Headline Inflation

The headline inflation or overall inflation in Surigao del Sur decreased to 3.8 percent in January 2024, from 5.7 percent in December 2023. Inflation in January 2023 was higher at 8.3 percent.  (Tables A and B)

For comparison, the provincial headline inflation in January 2024 is faster than the regional and national headline inflation at 2.8 percent.

The downtrend of overall inflation in January 2024 was mainly brought by the heavily weighted  food  and  non-alcoholic  beverages,  which  recorded  an  inflation  rate     of
7.7    percent from 9.3 percent in the previous month. This was followed by restaurants and accommodation services with an inflation rate of 7.9 percent from 8.1 percent in the previous month.

Compared with the previous month’s inflation rate, lower annual increment were noted in the indices of the following commodity groups during the months:

a)    Clothing and footwear, 3.4 percent from 3.8 percent;
b)    Housing, water, electricity, gas and other fuels, -2.4 percent from 4.2 percent;
c)    Furnishings,  household  equipment  and  routine  household   maintenance, 2.4 percent from 3.2 percent;
d)    Health, 1.1 percent from 1.6 percent; and
e)    Transport, -1.3 percent from -1.2 percent.

On the contrary, higher inflation rates were observed in the following commodity groups:

a)    Alcoholic beverages and tobacco, 7.8 percent from 6.2 percent;
b)    Information and communication, 1.4 percent from 1.3 percent; and
c)    Recreation, sport and culture, 4.3 percent from 3.7 percent.

Meanwhile, the indices of education services, financial services, and personal care, and miscellaneous and services retained their previous month’s annual rates. (Table C)

Food Inflation

At the provincial level, the food index decreased to 8.2 percent in January 2024, from
9.9  percent  in  the previous month. In January 2023, food inflation was higher at 9.2percent.

Likewise, the following food groups exhibited lower inflation rates during the month:

a.    Fruits and nuts, 6.1 percent from 10.6 percent;
b.    Vegetables, tubers, plantains, cooking bananas and pulses, -22.2 percent from 0.3 percent; and
c.    Sugar, confectionery and desserts, -9.1 percent from -9.0 percent.

On the contrary, higher inflation rates were observed in the following commodity groups:

a.    Cereals and cereal products, 31.2 percent from 27.7 percent;
b.    Meat and other parts of slaughtered land animals, 0.4 percent from 0.0 percent;
c.    Fish and other seafood, -5.7 percent from -6.9 percent;
d.    Milk, other dairy products and eggs, 15.6 percent from 14.3 percent;
e.    Oils and fats, 3.0 percent from 2.7 percent; and
f.    Ready-made food and other food products n.e.c, 6.7 percent from 6.2 percent.

TECHNICAL NOTES

Consumer Price Index (CPI) - The 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.

Components of the CPI

a.    Base Period - The reference data or base period is the benchmark or reference date or period at which the index is taken as equal to 100.

b.    Market Basket - A sample of the thousands of varieties of goods purchased for consumption and services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers.

c.    Weighing System - The weighing pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.

d.    Formula - The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyres formula with a fixed base year period (2018) weights.

e.    Geographic Coverage - CPI values are computed at the national, regional, and provincial levels, and for selected cities.

Inflation Rate (IR) - is the rate of change of the CPI expressed in percent. Inflation is interpreted in terms of the declining purchasing power of peso.

Purchasing Power of Peso (PPP) - shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.

Approved for release:
 

(Sgd.) RUEL L. DRES
Chief Statistical Specialist