SPECIAL RELEASE
Summary Inflation Report Consumer Price Index 
(2018=100)
June 2024

Date of Release: 18 July 2024     
Reference No.: SR-2024-0826-12

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 June 2024 vs. 2023

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

EASTERN SAMAR

1. Headline Inflation

Inflation Rate (IR) in Eastern Samar decelerated to 3.0 percent in June 2024 from 4.1 percent in May 2024. This brings the average inflation in the Province from January to June 2024 to 3.4 percent from an average inflation of 3.5 percent in the previous month. The Province’s inflation rate is lower than the 4.0 percent IR in Region VIII and 3.7 percent national average IR. In June 2023, inflation rate was recorded at 6.5 percent. (Figure 1, and Tables A and B)

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

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

The downward trend in the province’s inflation rate in June 2024 was mainly driven by a slower year-on-year growth rate of the heavily-weighted Food and Non-Alcoholic Beverages at 4.8 percent from 7.4 percent in May. Also, the slower increase in Clothing and Footwear at 2.3 percent from 3.4 percent in the previous month, and Transport at 0.8 percent from 1.4 percent in May 2024 contributed to the downtrend of the province’s inflation. (Table C)

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

(a)     Furnishings, Household Equipment, and Routine Household Maintenance, 3.3 percent from 4.4 percent; 
(b)     Personal Care, and Miscellaneous Goods and Services, 2.4 percent from 2.9 percent;
(c)     Information and Communication, 1.7 percent from 2.4 percent;
(d)     Alcoholic Beverages and Tobacco, 2.6 percent from 2.8 percent; and
(e)     Health, 2.3 percent from 2.4 percent.

On the other hand, the Housing, Water, Electricity, Gas, Other Fuels recorded a slower decline in inflation rate at -0.7 percent in June 2024 from an annual price decline of -2.0 percent in the previous month.

Recreation, Sport and Culture, Education Services, Restaurants and Accommodation Services, and Financial Services maintained their previous month’s inflation rates at 5.8 percent, 0.0 percent, 1.5 percent, and 0.0 percent, respectively.

Top Three Main Contributors to Eastern Samar Inflation

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

a.    Food and Non-Alcoholic Beverages with 81.9 percent share or 2.46 percentage points;
b.    Furnishings, Household Equipment, Household Maintenance with 4.1 percent share or 0.12 percentage points; and
c.    Personal Care, and Miscellaneous Goods and Services with 3.9 percent share or 0.12 percentage points.

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

2. Food Inflation

Inflation rate of Food in the Province in June 2024 decreased to 5.2 percent from 7.9 percent in the previous month. In June 2023, its inflation rate was higher at 7.1 percent. (Table D)

Main Drivers of the Downward Trend of Food Inflation

The downward trend of food inflation in June 2024 was mainly due to the slower price increase of Rice at 27.9 percent from 30.0 percent in May 2024.

Furthermore, the following food groups registered slower increases in their inflation rates in June 2024 compared to that in the previous month:

(a)    Milk, Other Dairy Products, Eggs, 2.3 percent from 2.8 percent;
(b)    Fruits and Nuts, 1.5 percent from 3.2 percent;
(c)    Ready-made Foods, and other food products not elsewhere classified, 2.0 percent from 2.8 percent;

Fish and other seafood; Oils and fats; and Sugar, Confectionery, and Desserts posted a faster price decline at -10.4 percent, -1.7 percent, and 
-6.9 percent, respectively in June 2024 from an annual price decrease of 
-1.0 percent, -0.1 percent, and -6.7 percent, respectively in May 2024.
    
Meanwhile, Vegetables, tubers, plantains, cooking bananas and pulses registered a slower price decrease at -7.5 percent in June 2024 from 
-7.9 percent in the previous month.

Only Meat and other parts of slaughtered animals posted an annual increase of 0.3 percent in June 2024 from 0.2 percent in May 2024.

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

Purchasing Power of Peso (PPP) maintains at PhP 0.80 in June 2024

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

For this month, the Purchasing Power of Peso (PPP) in Eastern Samar maintained its previous month’s PPP of 80 centavos. This indicates that a peso in 2018 has a value of 80 centavos in June 2024. (Figure 2)

Table 2. Consumer Price Index and Inflation Rate for All Income Households in Eastern Samar, By Commodity
May 2024 – June 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