PSA: Inflation rate for average CV households down to 1.8%

CEBU, Philippines — The inflation rate for the bottom 30 percent income households in Central Visayas decelerated to 1.8 percent in September 2024, which is 3.4 percent lower than the previous month, said the Philippine Statistics Authority (PSA) - 7.

The average year-to-date inflation rate from January to September is at 4.4 percent.

PSA-7 Chief Statistical Specialist, Engr. Leopoldo Alfanta Jr., said that this major decrease reflects in the price stability compared to the previous month, which registered an inflation rate of 5.2 percent.

“Compared to last year which was higher, meaning to say, mas maka palit ug daghan on the average ang usa ka household,” said Alfanta.

Key drivers behind the deceleration include the Food and Non-Alcoholic Beverages sector, which saw an inflation rate of 1.1 percent, accounting for a significant 89.5 percent share in the overall inflation downtrend.

Meanwhile, housing, water, gas, and other fuels registered a 5.5 percent inflation rate, contributing to the 6.2 percent overall share. Also, restaurants and accommodation services posted 1.6 percent, making up 4 percent this September.

Despite the reported deceleration, several products or commodities continued to drive-up the household costs.

With this, the top five contributors to September 2024 inflation for the bottom 30 percent income households include wood fuel, which steadied at 5.3 percent; Butane registered to 9.5 percent; unchanged from the previous month is the rental costs with 36 percent; and rice revealed a drop from 12.1 percent to 2.9 percent this September.

Alfanta also highlighted that this was primarily driven by slower year-on-year growth in food and non-alcoholic beverages, which dropped to 1.1 percent from 7.3 percent in the previous month.

“The buying capacity of the people mas dako siya kay dili man ingon ang pagdako o pagsaka sa presyo,” said Alfanta.

Other sectors of commodity groups showed lower inflation rate in the region just like, alcoholic beverages and tobacco showed a slight drop to 3.7 percent from 3.8 percent; education services decreased to 9.1 percent from 9.2 percent; and personal care along with miscellaneous goods and services eased to 2.7 percent from 2.9 percent.

In contrast, categories that showed price increases are, furnishings and household equipment that rose to 2.0 percent from 1.9 percent; health services to 3.3 percent from 3.2 percent, and recreation, sport, and culture, which leaped to 6.8 percent from 6 percent.

Also, clothing and footwear, information and communication, and financial services kept their inflation rates stable from the previous month.

Alfanta noted that substantial changes could lead to a significant impact on the prices of goods and services.

“Granting nga we will have a normal year ba, walay dagkong mahitabo nga kay dako man gud na siyag impact ba sa prices of goods and services,” he added.

Information from the Congressional Policy and Budget Research Department of the House of Representatives noted that “inflation rate for the bottom 30 percent income was constructed to monitor the welfare of poor families, who are most vulnerable to economic and social difficulties”. —/ATO (FREEMAN)