SPECIAL RELEASE

June 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)

Headline Inflation

Oriental Mindoro’s headline inflation or the overall inflation increased to 3.3 percent in June 2024 from 3.1 percent in May 2024. This brings the provincial average inflation from January to June 2024 at 2.9 percent. In June 2023, inflation rate in the province was higher at 8.4 percent.

Main Drivers to the Upward Trend of the Headline Inflation

The uptrend in the overall inflation in June 2024 was primarily influenced by the higher year-on-year increase in the housing, water, electricity, gas and other fuels index at 4.6 percent during the month from 3.5 percent in May 2024. In addition, the faster annual increases in the indices of food and non-alcoholic beverages at 1.8 percent in June 2024 from 1.7 percent in the previous month, and information and communication at 2.3 percent during the month from 0.9 percent in May 2024 contributed to the uptrend.

Moreover, higher inflation rates were also noted in the indices of transport at 1.7 percent and recreation, sports and culture at 2.9 percent in June 2024 from their respective inflation rates of 1.5 percent and 2.8 percent in May 2024.

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

• Alcoholic beverages and tobacco, 3.6 percent from 4.4 percent; 

• Clothing and footwear, 2.5 percent from 3.6 percent; 

• Furnishings, household equipment and routine household maintenance, 1.5 percent from 1.9 percent; and 

• Health, 4.7 percent from 4.8 percent.

The indices of the rest of the commodity groups retained their respective previous month’s annual rates.

Main Contributors to the Headline Inflation

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

• Housing, water, electricity, gas and other fuels, 27.1 percentage share or 0.89 percentage point; 

• Food and non-alcoholic beverages, 25.9 percent share or 0.86 percentage point; and 

• Restaurants and accommodation services, 23.0 percentage share or 0.76 percentage point.

Food Inflation

Food inflation in Oriental Mindoro remained at 1.9 percent in June 2024. In the previous year of the same month, inflation for food was recorded at 10.0 percent.

Main Drivers to the Trend of Food Inflation

By food group, the annual growth rate of the rice index accelerated further to 9.2 percent during the month, from 6.2 percent in the previous month. In addition, annual upticks were higher in the indices of the following food groups: 

• Vegetables, tubers, plantains, cooking bananas and pulses, 6.2 percent from 1.5 percent; 

• Milk, and other dairy products and eggs, -3.1 percent from -4.0 percent; 

• Oils and fats, -5.3 percent from -11.7 percent; 

• Fruits and nuts, -1.8 percent from -2.6 percent; and 

• Sugar, confectionery and desserts, -4.8 percent from -5.0 percent. 

Slower annual hikes were noted in June 2024 in the indices of flour, bread and other bakery products, pasta products and other cereals and meat and other parts of slaughtered land animals at 1.8 percent and 3.8 percent, respectively from their corresponding previous month’s rates of 2.3 percent and 4.1 percent.

Moreover, faster annual declines were noted in the indices of corn at -11.3 percent and fish and other seafood at -7.2 percent during the month, from their respective -6.9 percent and -0.9 percent annual rates in the previous month. The index of ready made food and other food products retained its May 2024 annual rate of 5.8 percent.

INFLATION RATE BY FOOD GROUP

Purchasing Power of the Peso

The Purchasing Power of Peso (PPP) in Oriental Mindoro is at Php 0.74 in June 2024. The PPP was registered at Php 0.76 in June 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) DONNA MARIE D. MOBE
(Supervising Statistical Specialist)
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