Headline Inflation 

Oriental Mindoro’s headline inflation or the overall inflation slowed down further to 2.5 percent in January 2024. This is the lowest inflation rate since the 1.8 percent recorded in April 2022. Inflation rate was observed at 3.4 percent in December 2023, while it was 11.6 percent in January 2023. 

Main Drivers to the Downward Trend of the Headline Inflation 

The downtrend in the overall inflation in the province in January 2024 was primarily brought about by the slower annual increment of housing, water, electricity, gas and other fuels at 2.5 percent in January 2024 from 5.4 percent in the previous month.   Also contributing to the downtrend was furnishings, household equipment and routine household maintenance with slower annual increase of 6.2 percent during the month from  7.6 percent in December 2023. 

Lower annual increments were also noted in the indices of the following commodity groups during the month: 

• Clothing and footwear, 7.1 percent from 8.0 percent; 

• Restaurants and accommodation services, 10.1 percent from 10.6 percent; and 

• Personal care, and miscellaneous goods and services, 3.4 percent from                 

4.1 percent. 

In addition, annual decreases were noted in the indices of transport at 4.4 percent in January 2024 from 3.1 percent annual decrease in the previous month, and financial services at 0.1 percent annual decrease during the month from zero percent annual rate in December 2023 

On the contrary, the indices of alcoholic beverages and tobacco and health exhibited a higher annual increase of 10.2 percent and 6.5 percent during the month from 9.7 percent and 5.6 percent, respectively in December 2023. 

The rest of the commodity groups retained their December 2023 inflation rates.

Main Contributors to the Headline Inflation 

The top three commodity groups contributing to the January 2024 overall inflation of the province were the following: 

• Food and non-alcoholic beverages, 29.2 percent share or 0.8 percentage point; 

• Restaurants and accommodation services, 23.8 percentage share or 0.6 percentage point; and

• Housing, water, electricity, gas and other fuels, 18.7 percentage share or 0.5 percentage point. 

Food Inflation 

Food inflation in Oriental Mindoro eased to 1.7 percent in January 2024 from1.8 percent in December 2023. In January 2023, food inflation rate was higher at 11.1 percent. 

Main Drivers to the Downward Trend of Food Inflation 

The lower food inflation during the month was mainly brought by the faster year-on-year decline in the indices of vegetables, tubers, plantains, cooking bananas and pulses and oils and fats, both at 13.5 percent during the month from 3.6 percent and 13.1 percent annual decrease in December 2023, respectively. Fish and other seafood also contributed to the downtrend with a slower inflation rate of 3.8 percent in January 2024 from 5.0 percent in the previous month.   

Also, the index of corn recorded an annual decline of 7.6 percent in January 2024 from an annual decrease of 5.8 percent in December 2023, while the index of flour, bread and other bakery products, pasta products, and other cereals observed lower inflation of 3.3 percent during the month from 4.0 percent in December 2023. 

On the contrary, higher year-on-year growth rates were noted in the indices of the following food groups during the month: 

• Rice, 10.3 percent from 10.0 percent; 

• Meat and other parts of slaughtered land animals, -2.6 percent from -6.3 percent; 

• Milk, and other dairy products and eggs, 2.2 percent from 1.9 percent; 

• Fruits and nuts, 6.4 percent from 3.6 percent; 

• Sugar, confectionery and desserts, -2.8 percent from -3.6 percent; and 

• Ready-made food and other food products, 4.9 percent from -1.3 percent. 

Purchasing Power of the Peso

The Purchasing Power of Peso (PPP) in Oriental Mindoro is at Php 0.74                       in January 2024. The PPP was registered at Php 0.76 in January 2023. 

As a result, the amount of goods that could be presently purchased by consumers was less than when the PPP was higher. Furthermore, the decrease in PPP was attributed to the higher inflation rate, given that PPP and inflation rate have an inverse relationship. 

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. 

o To determine the commodities that will form the market basket for the 2018based 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. o 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 (Jan 2024) = [(CPI(January 2024) - CPI(January 2023)) / CPI(January 2023)] x 100% 

                                                       = [(134.5 – 131.2) / 131.2] x 100% 

                                                       = (3.3 / 131.2) x 100% 

                                                         ≈ 2.5