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 4.9 percent in November 2023 from 5.3 percent in October 2023. This brings the average inflation rate from January to November 2023 for this income group to 6.9 percent. In November 2022, inflation rate was posted at 9.2 percent. (Figure 1, and Tables A, B, 5, 6, and 12)

1.1 Main Drivers to the Downward Trend of the Overall Inflation

The primary driver to the downward trend of the overall inflation for this income group in November 2023 was the lower year-on-year growth in the heavily-weighted food and non-alcoholic beverages at 7.2 percent during the month from 7.6 percent in the previous month. Also contributed to the downtrend of inflation for this income group were the slower annual increases observed in transport at 0.9 percent in November 2023 from 2.3 percent in the previous month, and restaurants and accommodation services at 6.0 percent annual increase during the period from 6.5 percent annual increment in October 2023.

In addition, lower annual increases were noted in the indices of the following commodity groups during the period:

          a. Alcoholic beverages and tobacco, 9.7 percent from 9.8 percent;
          b. Clothing and footwear, 4.3 percent from 4.8 percent;
          c. Furnishings, household equipment and routine household maintenance, 4.9 percent from 5.3 percent; 
          d. Health, 3.1 percent from 3.2 percent; 
          e. Information and communication, 0.8 percent from 0.9 percent;
          f.  Recreation, sport and culture, 6.9 percent from 7.1 percent;
          g. Education services, 4.6 percent from 5.1 percent; and
          h. Personal care, and miscellaneous goods and services, 4.9 percent from 5.6 percent.

Moreover, the index of housing, water, electricity, gas and other fuels dropped further to 2.4 percent in November 2023 from a 2.3 percent annual decrease in the previous month.

Meanwhile, the annual rate in the index of financial services remained at zero percent. (Tables 5 and 6)

1.2 Main Contributor to the Overall Inflation

The following commodity groups were the top three contributors to the November 2023 overall inflation for the bottom 30% income households:      

          a. Food and non-alcoholic beverages, 80.3 percent share or 3.9 percentage points;        
          b. Restaurants and accommodation services, 9.1 percent share or 0.5 percentage point; and       
          c. Alcoholic beverages and tobacco, 5.2 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 7.4 percent in November 2023 from 8.0 percent in the previous month. In November 2022, its annual increase was observed at 9.9 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 lower annual increase in vegetables, tubers, plantains, cooking bananas and pulses at 1.4 percent during the month from 10.9 percent in the previous month. This was followed by sugar, confectionery and desserts with 0.1 percent annual increment in November 2023 from 4.2 percent annual growth rate in October 2023, and fish and other seafood with 4.1 percent inflation during the month from 4.7 percent in the previous month.

In addition, lower annual growth rates were observed in the indices of the following food groups during the month:

          a. Flour, bread and other bakery products, pasta products, and other cereals, 6.0 percent from 6.4 percent;      
          b. Meat and other parts of slaughtered land animals, 1.8 percent from 1.9 percent; and      
          c. Ready-made food and other food products not elsewhere classified, 4.9 percent from 5.3 percent.

Moreover, faster annual declines were recorded the indices of corn at 2.9 percent in November 2023 from a 1.6 percent annual decline in the previous month, and oils and fats with 4.3 percent year-on-year decrease in November 2023 from a 4.1 percent annual decline in the previous month.

In contrast, faster annual increments were noted in the indices of rice at 17.4 percent during the month from 14.8 percent in the previous month, and milk, other dairy products and eggs at 8.3 percent in November 2023 from 7.9 percent in October 2023. Meanwhile, the fruits and nuts index remained at its previous month’s annual increase at 10.4 percent. (Tables 7 and 11)       

2.2 Main Contributors to the Food Inflation

Food inflation contributed 77.1 percent or 3.8 percentage points to the November 2023 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 74.7 percent share or 5.5 percentage points;        
          b. Fish and other seafood with 8.5 percent share or 0.6 percentage point; and        
          c. Milk, other dairy products and eggs with 6.8 percent share or 0.5 percentage point.       
 

B. National Capital Region (NCR)

Inflation for the bottom 30% income households in NCR, likewise, eased to 4.9 percent in November 2023 from 5.7 percent in October 2023. In November 2022, inflation in the area was recorded at 8.2 percent. (Tables A, 5, 6, and 13)

The downtrend of the inflation in the area was mainly brought about by the lower annual increment in food and non-alcoholic beverages at 4.0 percent during the month from 5.6 percent in October 2023.

In addition, lower annual increments were also noted in the indices of the following commodity groups during the month:

          a. Clothing and footwear, 2.5 percent from 2.7 percent; 
          b. Housing, water, electricity, gas and other fuels, 8.1 percent from 8.2 percent;
          c. Furnishings, household equipment and routine household maintenance, 4.6 percent from 5.6 percent;
          d. Health, 1.7 percent from 2.0 percent;
          e. Transport, 2.6 percent from 2.8 percent;
          f.  Information and communication, 0.3 percent from 0.5 percent;
          g. Recreation, sport and culture, 3.6 percent from 4.1 percent;
          h. Restaurants and accommodation services, 5.3 percent from 5.4 percent; and
          i.  Personal care, and miscellaneous goods and services, 4.0 percent from 4.1 percent.

On the other hand, faster annual increment was observed in the index of alcoholic beverages and tobacco at 6.5 percent during the month from 6.3 percent in October 2023.    

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

C. Areas Outside NCR (AONCR)

Following the trend at the national level and NCR, inflation for the bottom 30% income households in AONCR also recorded a downtrend at 4.9 percent in November 2023 from 5.3 percent in October 2023. In November 2022, inflation for this income group was registered at 9.2 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 7.3 percent in November 2023 from 7.7 percent in October 2023. Also contributed to the downtrend of inflation for this income group were the slower annual increases in transport at 0.8 percent in November 2023 from 2.3 percent in the previous month, and restaurants and accommodation services with 6.1 percent annual increment during the period from 6.6 annual hike in October 2023.

In addition, slower annual growth rates were observed in the indices of the following commodity groups during the month:        

          a. Alcoholic beverages and tobacco, 9.8 percent from 10.0 percent;
          b. Clothing and footwear, 4.4 percent from 4.9 percent;
          c. Furnishings, household equipment and routine household maintenance, 4.9 percent from 5.3 percent;
          d. Health, 3.1 percent from 3.2 percent;
          e. Information and communication, 0.9 percent from 1.0 percent;
          f. Recreation, sport and culture, 6.9 percent from 7.1 percent;
          g. Education Services, 4.6 percent from 5.1 percent; and
          h. Personal care, and miscellaneous goods and services, 5.0 percent from 5.6 percent.

Moreover, the housing, water, electricity, gas and other fuels index decreased further to 3.0 percent in November 2023 from an annual drop of 2.9 percent in the previous month.

The index of financial services remained at zero percent annual rate. (Tables 5 and 6)

In November 2023, 12 regions outside NCR recorded lower inflation rates for the bottom 30% income households relative to their respective inflation rates in the previous month. The lowest inflation rate was recorded in Region II (Cagayan Valley) at 2.1 percent, while the highest inflation rate was observed in Region IX (Zamboanga Peninsula) at 6.5 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        
 

See more at the Consumer Price Index for Bottom 30% Income Households main page.