Table A. Year-on-Year Inflation Rates
for the Bottom 30% Income Households, All Items
In Percent
(2018=100)

A. Philippines                   

1. Overall Inflation

The country’s inflation rate for the bottom 30% income households slowed down to 2.5 percent in September 2024 from 4.7 percent in August 2024. This is the lowest inflation rate for this particular income group since the 2.2 percent inflation rate recorded in May 2020. The average inflation rate for the bottom 30% income households from January to September 2024 is 4.6 percent. In September 2023, the inflation rate was posted at 6.9 percent. (Figure 1, and Tables A, B, 5, 6, and 12)

1.1 Main Drivers to the Downward Trend of the Overall Inflation

The downtrend in the overall inflation in September 2024 for this income group was primarily brought about by the lower year-on-year growth rate in the heavily-weighted food and non-alcoholic beverages at 2.1 percent in September 2024 from 5.8 percent in the previous month. In addition, faster annual decline was observed in transport index at 1.8 percent in September 2024 from 0.1 percent annual drop in the previous month. Housing, water, electricity, gas and other fuels also contributed to the lower inflation as its index exhibited a slower annual increase of 4.1 percent during the month from 4.7 percent in August 2024.

Moreover, lower annual rates were noted in the indices of the following commodity groups during the month:

          a. Alcoholic beverages and tobacco, 3.5 percent from 3.7 percent;
          b. Clothing and footwear, 2.6 percent from 2.7 percent;
          c. Furnishings, household equipment and routine household maintenance, 2.8 percent from 3.0 percent;
          d. Health, 2.1 percent from 2.2 percent;
          e. Information and communication, 0.7 percent from 0.8 percent;
          f.  Recreation, sport and culture, 5.3 percent from 6.0 percent;
          g. Education services, 4.4 percent from 6.1 percent;
          h. Restaurants and accommodation services, 4.0 percent from 4.4 percent; and
          i.  Personal care, and miscellaneous goods and services, 3.2 percent from 3.3 percent.

The index of financial services retained its previous month’s annual decrease of 0.1 percent in September 2024. (Tables 5 and 6)

1.2 Main Contributor to the Overall Inflation

The following commodity groups were the top three contributors to the September 2024 overall inflation for the bottom 30% income households:

          a. Food and non-alcoholic beverages with 47.1 percent share or 1.2 percentage points; 
          b. Housing, water, electricity, gas and other fuels with 26.0 percent share or 0.7 percentage point; and 
          c. Restaurants and accommodation services with 12.2 percent share or 0.3 percentage point. 

2. Food Inflation

Food inflation for the bottom 30% income households at the national level moved at a slower pace of 2.1 percent in September 2024 from 6.0 percent in the previous month. In September 2023, its annual increase was observed at 10.8 percent. (Table 9)

2.1 Main Drivers to the Downward Trend of the Food Inflation

The deceleration of food inflation was mainly due to the slower annual growth rate in rice index at 5.9 percent during the month from 16.4 percent in August 2024. Also contributed to the downtrend was vegetables, tubers, plantains, cooking bananas and pulses with a faster annual decline of 11.1 percent during the month from 1.1 percent annual decrease in August 2024.

Moreover, lower inflation rates during the month were noted in the following food groups: 

          a. Corn, 8.5 percent from 18.9 percent;
          b. Flour, bread and other bakery products, pasta products, and other cereals, 2.6 percent from 2.8 percent; 
          c. Meat and other parts of slaughtered land animals, 3.5 percent from 4.2 percent; and
          d. Ready-made food and other food products not elsewhere classified, 6.1 percent from 6.8 percent.

In addition, a faster annual decline was noted in the index of sugar, confectionery and desserts at 5.5 percent during the month from an annual decrease of 5.4 percent in the previous month.

In contrast, higher annual growth rates were noted in the indices of milk, other dairy products and eggs at 4.7 percent in September 2024 from 3.6 percent in August 2024, and fruits and nuts at 10.3 percent during the month from 8.7 percent annual rate in August 2024.

Meanwhile, slower annual decreases were observed in the indices of fish and other seafood at 1.8 percent during the month from 3.8 percent annual decline in August 2024, and oils and fats at 1.2 percent in September 2024 from a 2.2 percent annual decline in the previous month. (Tables 7 and 13)

2.2 Main Contributors to the Food Inflation

Food inflation contributed 43.8 percent or 1.1 percentage points to the September 2024 overall inflation for this particular income group.

Among the food groups, the main contributors to the food inflation during the month were the following:

          a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 101.1 percent share or 2.1 percentage points; 
          b. Meat and other parts of slaughtered land animals with 16.7 percent share or 0.4 percentage point; and 
          c. Fruits and nuts with 13.8 percent share or 0.3 percentage point. 
                  
 

B. National Capital Region (NCR)

Inflation rate for the bottom 30% income households in NCR, likewise, eased to 2.4 percent in September 2024 from 2.9 percent in August 2024. In September 2023, inflation in the area was recorded at 7.3 percent. (Tables A, 5, 6, and 13)

The deceleration of the inflation rate in the area was mainly brought about by the slower annual increase in housing, water, electricity, gas and other fuels index at 3.6 percent in September 2024 from 4.8 percent in the previous month. Also contributed to the downtrend were the slower annual increases in the indices of food and non-alcoholic beverages at 1.9 percent during the month from 2.3 percent in August 2024, and restaurants and accommodation services at 2.6 percent in September 2024 from 3.1 percent in the previous month.

Moreover, slower annual increments were observed in the indices of the following commodity groups during the month:

          a. Alcoholic beverages and tobacco, 2.5 percent from 2.8 percent;
          b. Transport, 1.7 percent from 2.6 percent; and
          c. Recreation, sport and culture, 4.1 percent from 4.2 percent.

On the other hand, faster annual increases were noted in the indices of health at 1.6 percent in September 2024 from 1.4 percent in the previous month, and personal care, and miscellaneous goods and services at 2.7 percent in September 2024 from 2.5 percent in the previous month.

The indices of the rest of the commodity groups remained at their respective previous month’s annual rates in September 2024. (Tables 5 and 6)

C. Areas Outside NCR (AONCR)

Following the trend at the national level and in NCR, inflation for the bottom 30% income households in AONCR decelerated to 2.5 percent in September 2024 from 4.8 percent in August 2024. In September 2023, inflation for this income group was registered at 6.9 percent. (Tables A, 5, and 14)

The deceleration of inflation in the area was mainly influenced by the lower year-on-year increment in the heavily-weighted food and non-alcoholic beverages at 2.1 percent in September 2024 from 5.9 percent in August 2024.

Moreover, slower annual increases were observed in the indices of the following commodity groups during the month:

          a. Alcoholic beverages and tobacco, 3.5 percent from 3.7 percent;
          b. Clothing and footwear, 2.6 percent from 2.7 percent;
          c. Housing, water, electricity, gas and other fuels, 4.1 percent from 4.7 percent;
          d. Furnishings, household equipment and routine household maintenance, 2.8 percent from 3.0 percent;
          e. Health, 2.2 percent from 2.3 percent;
          f.  Information and communication, 0.8 percent from 0.9 percent;
          g. Recreation, sport and culture, 5.3 percent from 6.1 percent;
          h. Education services, 4.5 percent from 6.2 percent;
          i.  Restaurants and accommodation services, 4.1 percent from 4.6 percent; and
          j.  Personal care, and miscellaneous goods and services, 3.2 percent from 3.3 percent. 

Also contributing to the downtrend of inflation was the faster annual decrease of transport index at 1.9 percent in September 2024 from 0.3 percent annual decrement in the previous month. 

The index of financial services retained its previous month’s annual decrease of 0.1 percent. (Tables 5 and 6)

In September 2024, all regions outside NCR recorded lower inflation rates for the bottom 30% income households relative to their respective inflation rates in August 2024. The lowest inflation rate was recorded in Region I (Ilocos Region) at 0.6 percent, while the highest inflation rate was observed in Region VI (Western Visayas) at 4.0 percent. (Table 6)

Note: CPIs and inflation rates for the bottom 30% income households by region are posted at the PSA OpenSTAT portal at https://openstat.psa.gov.ph/PXWeb/pxweb/en/DB/DB__2M__PI__BIH__2018/?tablelist=true.

CLAIRE DENNIS S. MAPA, PhD                
Undersecretary                   
National Statistician and Civil Registrar General                   
 

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