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

Table A. Year-on-Year Inflation Rates, All Items
In Percent (2018=100)

Source: Philippine Statistics Authority, Retail Price Survey of Commodities for the Generation of Consumer Price Index

*Year-on-year change of average CPI for January to August 2024 vs. 2023

Figure 1. Inflation Rates in Eastern Samar, All Items 
(2018=100)

Source: Philippine Statistics Authority, Retail Price Survey of Commodities for the Generation of Consumer Price Index

EASTERN SAMAR

1.    Headline Inflation

Inflation Rate (IR) in Eastern Samar eased to 2.7 percent in August 2024 from 3.3 percent in July 2024. This brings the average inflation in the Province from January to August 2024 to 3.3 percent. The Province’s inflation rate is lower than the 3.3 percent IR in Region VIII and in the Philippines. In August 2023, inflation rate was higher at 5.5 percent. (Figure 1, and Tables A and B)

Table B. Year-on-Year Inflation Rates in Eastern Samar, All Items
In Percent
January 2019 – August 2024
(2018=100)

Source: Philippine Statistics Authority, Retail Price Survey of Commodities for the Generation of Consumer Price Index,

Main Drivers of the Downward Trend of Eastern Samar’s Inflation

The downward trend in the province’s inflation rate in August 2024 was mainly driven by an annual decline of transport at 3.2 percent from a
1.2    percent annual increase in July. Also, the annual drop in housing, water, electricity, gas, and other fuels at 0.4 percent from an annual increase of 0.1 percent in the previous month, and a slower inflation rate of food and non-alcoholic beverages at 5.1 percent from 5.2 percent in July 2024 contributed to the downward trend of the province’s inflation. (Table C)

In addition, the following commodities registered slower inflation rates in August 2024:

(a)    Restaurants and accommodation services, 0.9 percent from 2.1 percent;
(b)    Personal care, and miscellaneous goods and services, 1.4 percent from 1.9 percent;
(c)    Recreation, sport and culture, 4.9 percent from 6.2 percent;
(d)    Alcoholic beverages and tobacco, 1.8 percent from 2.6 percent;
(e)    Clothing and footwear, 2.1 percent from 2.3 percent;
(f)    Health, 2.1 percent from 2.3 percent; and
(g)    Furnishings,    household    equipment,    and    routine    household maintenance, 2.5 percent from 2.6 percent.

Meanwhile, information and communication, education services, and financial services maintained their respective previous month’s inflation rates at 1.7 percent, 0.0 percent, and 0.0 percent.

Top Three Main Contributors to Eastern Samar Inflation

The following commodity groups were the top three (3) contributors to the August 2024 inflation of the province of Eastern Samar:

a.    Food and non-alcoholic beverages with 93.5 percent share or 2.52 percentage points;
b.    Furnishings,    household    equipment,    and    routine    household maintenance with 3.3 percent share or 0.09 percentage point; and
c.    Clothing and footwear with 2.9 percent share or 0.08 percentage point.

Table C. Year-on-Year Inflation Rates in Eastern Samar, By Commodity Group
In Percent
August 2023, July 2024, and August 2024
(2018=100)

2.    Food Inflation

Inflation rate of Food in the Province in August 2024 slowed down to
5.4    percent from 5.6 percent in the previous month. In August 2023, food inflation was lower at 5.3 percent. (Table D)

Main Drivers of the Downward Trend of Food Inflation

The downward trend of food inflation in August 2024 was primarily due to the slower inflation rate of Rice at 22.2 percent from 26.4 percent in July 2024. Also, the slower annual increase in fruits and nuts at 3.1 percent from an annual increase of 5.3 percent in the previous month contributed to the downward trend of the province’s food inflation.

Meanwhile, the following food groups registered faster annual increases in their inflation rates in August 2024 compared to that in the previous month:

(a)    Flour, bread and other bakery products, pasta products, and other cereals, 2.3 percent from 1.8 percent;
(b)    Meat and other parts of slaughtered land animals, 1.7 percent from
1.1 percent;
(c)    Milk, other dairy products and eggs, 3.0 percent from 2.3 percent; and
(d)    Ready-made foods, and other food products not elsewhere classified, 3.6 percent from 2.2 percent.

Fish and other seafood; oils and fats; and vegetables, tubers, plantains, cooking bananas and pulses registered slower annual declines at 6.4 percent, 1.4 percent, and 3.6 percent, respectively during the month from
8.6 percent, 1.7 percent, and 5.1 percent, respectively in the previous month.

On the other hand, sugar, confectionery and desserts maintained its previous annual decrease of 6.1 percent in August 2024.

Table D. Year-on-Year Inflation Rates in Eastern Samar, By Food and Non-Alcoholic Beverages
In Percent
August 2023, July 2024, and August 2024
(2018=100)

Source: Philippine Statistics Authority, Retail Price Survey of Commodities for the Generation of Consumer Price Index

Purchasing Power of Peso (PPP) remains at PhP 0.80 in August 2024 

Figure 2. Purchasing Power of Peso in Eastern Samar
August 2023 – August 2024
(2018=100)

For this month, the Purchasing Power of Peso (PPP) in Eastern Samar remained at 80 centavos. This indicates that a peso in 2018 has a value of 80 centavos in August 2024. (Figure 2)

Table 2. Consumer Price Index and Inflation Rate for All Income Households in Eastern Samar, By Commodity
July 2024 – August 2024
(2018=100)

TECHNICAL NOTES

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 reference period known as the base year. The current CPI series is 2012-based.
The 2012 FIES expenditure data were used to directly estimate the 2012 CPI weights at the national and regional levels. However, the 2012 FIES estimates for the expenditure data at the provincial level were not directly utilized in estimating the CPI expenditure weights as the data at the provincial/city level may not be reliable with the use of the households' master sample (MS) that was utilized in selecting the 2012 FIES sample households. The MS was drawn using regions as domains in generating estimates in all the household surveys of the PSA starting July 2003. The provincial/city expenditure data were derived using the model-based method in small area estimation procedures using the regional expenditure data as the control total for all the expenditure data within the specific region. Using these estimates, the weight for each item of expenditure is computed as a proportion of that item of expenditure to the total national expenditure. A raking procedure was done to adjust the weights of the provinces so that the provincial weights when added up will equal to the regional weights.
The formula used in computing the CPI is the weighted arithmetic mean of price relatives, a variant of the Laspeyres formula with fixed base year period weights as shown below:

∑ [(Pn / P0) * (P0*Q0)]
CPI =         X 100
∑(P0*Q0)

where Pn    = current price P0    = base year price or base price P0 * Q0 = base year weights
 

Base Period or Base Year - is the period, usually a year, at which the index number is set to 100. It is the reference point of the index number series.
Market Basket - is a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.
Inflation Rate (IR) - is defined as the annual rate of change or the year-to-year change in the CPI and is computed as:

(CPI2 – CPI1)
Inflation Rate =    X 100
CPI1
where CPI2 = is the CPI in the second period CPI1 = is the CPI in the previous period
Purchasing Power of the Peso (PPP) - is a measure of the real value the peso in a given period relative to a chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100.

PPP = (1/CPI (All Items) *100

RONNIE A. BAJADO
Chief Statistical Specialist