INFLATION RATE FOR BOTTOM 30% INCOME HOUSEHOLDS

The headline inflation rate at the provincial level increased to 2.1 percent in December 2024, an increase of 1.3 percentage points from the inflation rate of 0.8 percent recorded in the previous month (November 2024). In the same reference month of the previous year (December 2023), the inflation rate was posted at 3.2 percent.

The uptrend of inflation in December 2024 was mainly driven by the combined acceleration in the
indices for selected commodity groups such as food and non-alcoholic beverages at 3.1 percent, housing, water, electricity, gas and other fuels at 2.5 percent, and, clothing and footwear at 3.1 percent.

Furthermore, the annual index of transport also showed higher growth compared to the figures
from the previous month, at -0.7 percent.

On the other hand, lower annual increments were observed in the inflation rates of the
following commodity groups:

• Alcoholic Beverages and Tobacco, 3.8%; 
• Furnishings, Household Equipment, and Routine Household Maintenance, 1.6%;
• Health, 0.8%;
• Recreation, Sport, and Culture, 2.2%; and
• Personal Care, and Miscellaneous Goods and Services, 1.8% 
Meanwhile, the indices of the following commodity groups maintained compared with the
annual figures from the previous month:
• Information and Communication, 0.3%;
• Education Services, 0.0%;
• Restaurants and Accommodation Services, -0.8%; and
• Financial Services, -1.5% 
 

The province’s food index further accelerated to 3.2 percent in December 2024, from 0.6 percent in the previous month. This was equivalent to a change of 2.6 percentage points. In December 2023, the food inflation rate was higher at 2.8 percent. The uptrend in food inflation was mainly due to the acceleration in the indices of Fish and other seafood at 9.0 percent, vegetables, tubers, plantains, cooking bananas and pulses at 4.3 percent, and meat and other parts of slaughtered land animals at 0.8 percent.

 Furthermore, the annual indices of the following food items exhibited higher growth when compared with the annual figure from the previous month, as follows:
• Corn, 7.5%;
• Oils and fats, -1.6%;
• Sugar, confectionery and desserts, -3.2%; and
• Ready-made food and other food products N.E.C, 7.5%
On the other hand, the annual indices of the following food items exhibited lower growth when compared with the annual figure from the previous month, as follows:
• Rice, 1.5%;
• Milk, other dairy products and eggs, -1.3%; and
• Fruits and nuts, 3.8%

PURCHASING POWER OF PESO
The Purchasing Power of Peso (PPP) for the Bottom 30% Income Households in Marinduque decreased to PhP 0.75 in December 2024 from 0.76 in November 2024. The PPP was registered at PhP 0.77 in December 2023. As a result, the amount of goods that can be presently purchased by consumers were fewer compared to when the PPP was higher.

• Consumer Price Index 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.
• Market Basket is a sample of goods and services, which is meant to represent the totality
  of all the goods and services purchased by households relative to a base year.
  • To determine the commodities that will form the market basket for the 2018-based
    CPI, the Survey of Key Informants (SKI) was conducted in March 2021. The
    survey, which was conducted nationwide to store managers, sellers or proprietors,
    obtained information on the most commonly purchased of goods and availed of
    services by the households.
  • The commodities in the 2018-based CPI market basket are grouped/classified
    according to the 2020 Philippine Classification of Individual Consumption
    According to Purpose (PCOICOP) which is based on the United Nations COICOP.
    Meanwhile, the commodities in the 2012-based CPI market basket used the 2009
    PCOICOP version of classification of commodities.

• Base year is a reference period, usually a year, at which the index number is set to 100.
It is the reference point of the index number series. The CPI is rebased from base year
2012 to base year 2018.
• Inflation Rate is the annual rate of change or the year-on-year change in the Consumer
Price Index (CPI).
• Purchasing Power of Peso is a measure of the real value of 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
Inflation Rate (reference month, reference year)
= [(CPI (reference month, reference year) - CPI (reference month, previous year)) / CPI (reference month, previous year)] x 100%
For example,
INFLATION RATE (December 2024) = [(CPI (December 2024) - CPI(December 2023)) / CPI(December 2023)] x 100%
= [(133.3 – 130.5) / 130.5] x 100%
= (2.8 / 130.5) x 100%
≈ 2.1%

(SGD)GEMMA N. OPIS
Chief Statistical Specialist
PSA PSO Marinduque