Eastern Visayas

The Inflation Rate (IR) for the bottom 30% income households in Eastern Visayas increased to 4.6 percent in April 2024 after two (2) consecutive months of deceleration. This brings the average inflation rate from January to April 2024 for this income group to 5.0 percent. Moreover, the regional IR for the bottom 30% income household was lower than the 5.2 percent national IR for the same income group in April 2024. In April 2023, the regional IR was higher at 6.0 percent (Tables 1 and 2).

Main Drivers to the Upward Trend of the Regional Inflation

The main driver to the upward trend of the regional inflation for the bottom 30% income households in April 2024 was the higher IR in the heavily weighted food and non-alcoholic beverages at 8.2 percent from 7.8 percent IR in the previous month. This was followed by the slower annual decline in housing, water, electricity, gas and other fuels at 5.7 percent in April 2024 from 6.2 percent annual decrease in March 2024. In addition, furnishings, household equipment and routine household maintenance likewise exhibited higher IR at 2.2 percent in April 2024 from 1.8 percent in March 2024.

Moreover, higher IRs were noted in the indices of the following commodity groups during the month:

a. Health, 2.1 percent from 1.4 percent; 
b. Clothing and footwear, 1.0 percent from 0.7 percent; and 
c. Recreation, sport and culture, 4.4 percent from 4.2 percent.

On the other hand, lower IRs were recorded in alcoholic beverages and tobacco commodity group and transport commodity group at 7.8 percent and 1.1 percent during the month, from 8.7 percent and 1.8 percent in March 2024, respectively.

The commodity groups of information and communication, education services, and restaurants and accommodation services, retained their previous month’s IRs at 0.2 percent, 2.1 percent, and 3.6 percent, respectively. Meanwhile, financial services maintained its 0.1 percent annual price decrease in March 2024.

Main Contributors to the Regional Inflation

The top three commodity groups that contributed to the April 2024 regional IR for the bottom 30% income households were the following:

a. Food and non – alcoholic beverages with 102.8 percent share or 4.7 percentage points; 
b. Alcoholic beverages and tobacco with 4.3 percent share or 0.2 percentage point; and 
c. Restaurants and accommodation services, with 3.1 percent share or 0.1 percentage point.

Food Inflation

Food inflation for the bottom 30% income households in Eastern Visayas likewise increased to 8.6 percent in April 2024 from 8.3 percent in the previous month. In April 2023, food inflation was posted at 7.5 percent (Table 3).

The increase of food IR was primarily due to the slower annual decline in fish and other seafood at 2.8 percent in April 2024 from 4.7 percent annual decrease in the previous month. This was followed by the slower annual price decrease in vegetables, tubers, plantains, cooking bananas and pulses at 5.2 percent from an annual decline of 7.8 percent in March 2024. Meat and other parts of slaughtered land animals also recorded slower annual price decrease at 1.6 percent during the month from 2.2 percent annual decline in March 2024.

Moreover, faster IR was posted in ready-made food and other food products not elsewhere classified at 4.0 percent during the month from 3.4 percent in March 2024. In addition, slower annual decline was noted in sugar, confectionery and desserts at 2.4 percent in during the month from 2.5 percent annual decrease in March 2024.

In contrast, compared with their previous month’s IRs, slower IRs were observed in the following food groups:

a. Rice, 25.3 percent from 26.6 percent; 
b. Corn, 4.0 percent from 4.9 percent; 
c. Flour, bread, and other bakery products, pasta products, and other cereals, 3.8 percent from 4.2 percent; 
d. Milk, other dairy products and eggs, 4.8 percent from 5.0 percent; and 
e. Fruits and nuts, 9.6 percent from 11.9 percent.

In addition, oils and fats recorded faster price decrease in April 2024 at 1.3 percent from an annual decline of 1.2 percent in March 2024.

Main Contributors to the Food Inflation

Food inflation shared 100.8 percent or 4.6 percentage points to the regional inflation for the bottom 30% income household in April 2024. The food groups with the highest contribution to the food inflation during the month were the following:

a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 103.4 percent share or 8.9 percentage points; 
b. Fruits and nuts, with 2.9 percent share or 0.3 percentage point; and 
c. Milk, other dairy products and eggs, with 2.8 percent share or 0.2 percentage point.

Inflation Rate by Region

Relative to their IRs in the previous month, all of the regions registered higher IRs for the bottom 30% income households in April 2024, except for NCR and Bicol Region, which recorded lower IRs. Eastern Visayas’ IR for the bottom 30% income household at 4.6 percent ranked fifth among the regions with low IR during the month in review. Zamboanga Peninsula recorded the highest IR for this income group in April 2024 at 6.9 percent, while NCR registered the lowest IR for this income group at 3.8 percent. (Figure 2 and Table 4)

Inflation Rate by Province

In comparison to their IRs for the bottom 30% income households in March 2024, all provinces registered higher IRs in April 2024, except Northern Samar and Samar, which recorded lower IRs. Meanwhile, Tacloban City, the lone Highly Urbanized City (HUC) in the region, likewise recorded higher IR during the month in review. For this income group, Southern Leyte posted the highest IR among the provinces at 6.6 percent. This was closely followed by Biliran at 6.5 percent, Leyte and Samar both at 4.9 percent, and Eastern Samar at 3.2 percent. The lowest IR for this income group was noted in Northern Samar at 2.7 percent. Meanwhile, IR for the bottom 30% income households in Tacloban City was recorded at 5.6 percent in April 2024. (Figure 3 and Table 5).

TECHNICAL NOTES

The CPI for the bottom 30% income households is compiled by the PSA to measure the changes of prices of commodities commonly purchased by the families that belong to the bottom 30% income decile. The process of price collection and CPI computation is the same as that of the CPI for all income households. However, there is a separate market basket and weights for the CPI for the bottom 30% income households.

BASE YEAR - is a period at which the index number is set to 100. It is the reference point of the index number series. The CPI is rebased from 2012 to 2018.

CONSUMER PRICE INDEX (CPI) - is an indicator of the change in the average prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

DEFLATION - is the decline in prices for goods and services that happens when the inflation rate dips below zero percent.

INFLATION RATE (IR) - is the annual rate of change or the year-on-year changes in CPI. It indicates how fast or how slow price changes over two time periods (year-on-year). Contrary to common knowledge, low inflation does not necessarily connote that prices of commodities are falling. It means that prices continue to increase but at a slower rate.

MARKET BASKET - refers to a sample of goods and services commonly purchased by the households. The market basket for CPI was updated using the results of the 2021 Survey of Key Informants (SKI). The commodities included in the 2018-based CPI market basket were the modal commodities which were considered as the most commonly purchased/availed commodities by the households. The commodities in the 2018-based CPI market basket were grouped/classified according to the 2020 Philippine Classification of Individual Consumption According to Purpose (PCOICOP).

MONITORING OF PRICES - involves establishing baseline information for the prices of the items in the base year and monitoring the prices of the items on a regular basis. Data collection for the CPI is done by the provincial office twice a month, except for petroleum products which are monitored on a weekly basis, every Friday. First collection phase is done during the first five days of the month while the second phase is on the 15th to 17th day of the month.

PURCHASING POWER OF PESO (PPP) - gives an indication of the real value of peso (how much it is worth) in a given period relative to its value in the base period. It is computed as the reciprocal of CPI multiplied by 100.

RETAIL PRICE - refers to the actual price at which retailers sell a commodity on spot or earliest delivery, usually in small quantities for consumption and not for resale. It is confined to transactions on cash basis in the free market and excludes underground prices and prices of commodities that are on sale as in summer sales, anniversary sales, Christmas sales, etc.

WEIGHTS - is a value attached to a commodity or group of commodities to indicate the relative importance of that commodity or group of commodities in the market basket. The weights for the 2018-based CPI were derived from the expenditure data of the 2018 Family Income and Expenditure Survey (FIES). The weight for each commodity/group of commodities is the proportion of the expenditure commodity/group of commodities to the total national expenditure. The sum of the weights of the commodity groups at the national level is equal to 100.

(SGD) WILMA A. PERANTE 
Regional Director