Headline Inflation
Oriental Mindoro’s headline inflation or overall inflation increased to 4.9 percent in December 2024 from 3.9 percent in November 2024. This brings the provincial average inflation from January to December 2024 at 3.1 percent. In December 2023, inflation rate in the province was lower at 3.4 percent. (Figure 1 and Table 1)
Annual Average Inflation
Oriental Mindoro’s annual average inflation rate for 2024 stood at 3.1 percent, which was lower than the 2023 annual average inflation rate of 7.7 percent. (Table 2)
Main Drivers to the Upward Trend of the Headline Inflation
The uptrend in overall inflation in December 2024 was primarily influenced by the faster annual increment in the index of food and non-alcoholic beverages at 7.3 percent during the month from 6.1 percent in November 2024. Housing, water, electricity, gas and other fuels also contributed to the uptrend as it recorded a faster annual increase of 4.9 percent in December 2024 from 3.8 percent in the previous month.
The annual increase of transport at 0.1 percent during the month from an annual decline of 1.6 percent in November 2024 also contributed to the uptrend.
Higher annual increments were also noted in the indices of the following commodity groups during the month:
a. Alcoholic beverages and tobacco, 5.7 percent from 2.9 percent;
b. Information and communication, 2.5 percent from 2.3 percent; and
c. Recreation, sport and culture, 2.8 percent from 2.3 percent.
In contrast, furnishings, household equipment and routine household maintenance registered a lower inflation rate of 0.4 percent during the month from 0.7 percent in November 2024. Lower inflation rate was also observed in the index of personal care, and miscellaneous goods and services at 1.5 percent in December 2024 from 2.0 percent in November 2024.
The indices of the rest of the commodity groups retained their respective previous month’s inflation rates in December 2024. (Figure 2)
Main Contributors to the December 2024 Headline Inflation
The top three commodity groups contributing to the December 2024 overall inflation of the province were the following:
a. Food and non-alcoholic beverages with 67.1 percent share or 3.29 percentage points;
b. Housing, water, electricity, gas and other fuels with 18.4 percentage share or 0.90 percentage point; and
c. Restaurants and accommodation services, 5.1 percent share or 0.25 percentage point.
Food Inflation
Food inflation in Oriental Mindoro rose to 7.6 percent in December 2024 from 6.4 percent in the previous month. In December 2023, food inflation was lower at 1.8 percent.
Main Drivers to the Upward Trend of Food Inflation
The acceleration of food inflation in December 2024 was primarily brought about by the faster inflation rate of meat and other parts of slaughtered land animals at 33.1 percent in December 2024 from 22.5 percent in the previous month. This was followed by vegetables, tubers, plantains, cooking bananas and pulses with an annual increase of 6.7 percent during the month from 6.5 percent in November 2024.
Moreover, higher annual growth rates during the month were observed in the indices of the following food groups:
a. Fish and other seafood, 1.2 percent from -2.6 percent;
b. Milk, other dairy products and eggs, 2.1 percent from 1.3 percent;
c. Oils and fats, 2.9 percent from 0.6 percent;
d. Sugar, confectionery and desserts, -2.3 percent from -3.5 percent; and
e. Ready-made food and other food products n.e.c., 4.5 percent from 4.1 percent.
On the contrary, lower inflation rates were observed in the indices of rice -1.5 percent in December 2024 from 3.8 percent in the previous month, and fruits and nuts at 10.4 percent during the month from 14.5 percent in November 2024.
The indices of the rest of the commodity groups remained at their respective previous month’s annual rates. (Figure 3)
INFLATION RATE BY FOOD GROUP
Purchasing Power of the Peso
The Purchasing Power of Peso (PPP) in Oriental Mindoro is at Php 0.71 in December 2024. The PPP was registered at Php 0.75 in December 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.
CHARLYN ROMERO-CANTOS, PhD
(Chief Administrative Officer)
Officer-in-Charge
Oriental Mindoro Provincial Statistical Office
HTD/JGO
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.
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 chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100