SPECIAL RELEASE

July 2024 Inflation Report of Oriental Mindoro (Base Year: 2018)

Table 1. Year-on-Year Inflation Rates (%) in the Philippines, MIMAROPA Region, and Oriental Mindoro Province, All Items (2018=100)

Figure 1. Year-on-Year Inflation Rates (%) in Oriental Mindoro: July 2023 to July 2024 (2018=100)

Headline Inflation

Oriental Mindoro’s headline inflation or the overall inflation increased to 4.3 percent in July 2024 from 3.3 percent in June 2024. This brings the provincial average inflation from January to June 2024 at 3.1 percent. In July 2023, inflation rate in the province was higher at 6.5 percent.

Main Drivers to the Upward Trend of the Headline Inflation

The uptrend in the overall inflation in July 2024 was primarily influenced by the higher year-on-year increase in the index of housing, water, electricity, gas and other fuels at 6.8 percent during the month from 4.6 percent in June 2024. In addition, the faster annual growth rate of the heavily-weighted food and non-alcoholic beverages index at 3.2 percent in July 2024 from 1.8 percent in June 2024 also contributed to the uptrend of the overall inflation rate.

Moreover, higher inflation rates during the month were also noted in the indices of transport at 2.5 percent and education services at 3.2 percent from their respective inflation rates of 1.7 percent and 3.0 percent in the previous month.

Figure 2. Year-on-Year Inflation Rates (%) in Oriental Mindoro by Commodity Group (2018=100)

In contrast, the following commodity groups registered lower inflation rates during the month: 

• Alcoholic beverages and tobacco, 2.2 percent from 3.6 percent; 

• Clothing and footwear, 1.8 percent from 2.5 percent; 

• Furnishings, Household Equipment and Routine Household, 1.3 percent from 1.5 percent; 

• Health, 4.3 percent from 4.7 percent; 

• Information and Communication, 2.0 percent from 2.3 percent; 

• Recreation, Sport and Culture, 2.1 percent from 2.9 percent; 

• Restaurants and Accommodation Services, 10.7 percent from 12.4 percent; and 

• Personal Care, and Miscellaneous Goods and Services, 2.1 percent from 2.5 percent.

Main Contributors to the Headline Inflation

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

• Food and non-alcoholic beverages, 35.8 percent share or 1.54 percentage point; 

• Housing, water, electricity, gas and other fuels, 31.0 percentage share or 1.33 percentage point; and 

• Restaurants and accommodation services, 15.4 percentage share or 0.66 percentage point.

Food Inflation

Food inflation in Oriental Mindoro recorded an upward movement at 3.2 percent in July 2024 from 1.9 percent in June 2024. In the previous year of the same month, inflation for food was recorded at 7.7 percent.

Main Drivers to the Trend of Food Inflation

The acceleration of food group inflation in July 2024 was mainly due to an uptrend in growth rate of the meat and other parts of slaughtered land animals at 8.9 percent during the month, from 3.8 percent in the previous month.

Higher year-on-year growth rates were also observed in the indices of the following food groups: 

• Corn, -8.2 percent from -11.3 percent; 

• Fish and other seafood, -5.2 percent from -7.2 percent; 

• Milk, and other dairy products and eggs, 1.2 percent from -3.1 percent; 

• Oils and fats, -4.7 percent from -5.3 percent; 

• Fruits and nuts, 6.4 percent from -1.8 percent; and 

• Ready-made food and other food product, n.e.c, 6.1 percent from 5.8 percent.

Slower annual hikes were noted in July 2024 in the indices of rice at 7.5 percent from 9.2 percent in June 2024, and flour, bread and other bakery products, pasta products at 0.9 percent from 1.8 percent in the previous month. 

Moreover, faster annual declines were noted in the indices of vegetables, tubers, plantains, cooking bananas and pulses at 1.9 percent from 6.2 percent in the previous month. The index of sugar, confectionery and desserts retained its June 2024 annual rate of -4.8 percent.

INFLATION RATE BY FOOD GROUP

Purchasing Power of the Peso

The Purchasing Power of Peso (PPP) in Oriental Mindoro is at Php 0.73 in July 2024. The PPP was registered at Php 0.76 in July 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.

(SGD) CHARLYN ROMERO-CANTOS, PhD
(Chief Administrative Officer)
Officer-in-Charge
Oriental Mindoro Provincial Statistical Office

Table 2. Consumer Price Index by Subgroup, Month-on-Month and Year-on-Year Percent Changes in Oriental Mindoro (2018=100)

TECHNICAL NOTES

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