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 increased to 5.8 percent in July 2024 from 5.5 percent in June 2024. This brings the average inflation for this income group from January to July 2024 to 4.9 percent. In July 2023, inflation rate was posted at 5.2 percent. (Figure 1, and Tables A, B, 5, 6, and 12)

1.1 Main Drivers to the Upward Trend of the Overall Inflation

The main driver of the upward trend of the overall inflation for this income group in July 2024 was the higher year-on-year growth rate of the housing, water, electricity, gas and other fuels index at 1.8 percent during the month from 0.7 percent in June 2024. The food and non-alcoholic beverages index also contributed to the uptrend of inflation with a faster annual growth rate of 8.3 percent in July 2024 from 8.0 percent in June 2024.

In addition, higher annual increments were posted in the indices of transport at 3.6 percent during the month from 3.0 percent in June 2024, and education services at 5.8 percent in July 2024 from 4.2 percent in the previous month.

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

          a. Alcoholic beverages and tobacco, 3.9 percent from 4.2 percent;
          b. Clothing and footwear, 3.0 percent from 3.2 percent;
          c. Furnishings, household equipment and routine household maintenance, 3.0 percent from 3.2 percent;
          d. Restaurants and accommodation services, 4.6 percent from 4.8 percent; and
          e. Personal care, and miscellaneous goods and services, 3.4 percent from 3.5 percent. 

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

1.2 Main Contributor to the Overall Inflation

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

          a. Food and non-alcoholic beverages with 77.0 percent share or 4.5 percentage points;
          b. Restaurants and accommodation services with 5.8 percent share or 0.3 percentage point; and
          c. Housing, water, electricity, gas and other fuels with 4.7 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 faster pace of 8.7 percent in July 2024 from the 8.4 percent inflation rate in the previous month. In July 2023, food inflation was observed at 6.1 percent. (Table 9)

2.1 Main Drivers to the Upward Trend of the Food Inflation

The uptrend in the food inflation for the bottom 30% income households was mainly due to the higher annual growth rate in the index of meat and other parts of slaughtered land animals at 4.7 percent during the month from the 3.0 percent annual increase in June 2024. Also contributing to the uptrend is the fish and other seafood index with a slower annual decrease of 1.3 percent during the month from its 2.2 percent annual decline in June_2024. The index of fruits and nuts was the third contributor to the increase of food inflation for the bottom 30% income households with an inflation rate of 7.2 percent in July 2024 from 5.8 percent in June 2024.

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

          a. Corn, 18.2 percent from 14.7 percent;
          b. Milk, other dairy products and eggs, 2.0 percent from 1.4 percent; and
          c. Vegetables, tubers, plantains, cooking bananas and pulses, 4.5 percent from 4.1 percent.

On the contrary, slower annual increases during the month were recorded in the indices of rice at 22.8 percent in July 2024 from 24.4 percent in the previous month; and flour, bread and other bakery products, pasta products, and other cereals at 3.0 percent during the month from its 3.2 percent annual increase in June 2024.

In addition, faster annual decreases were recorded in the indices of oils and fats at 3.1 percent during the month from a 3.0 percent annual decline in June 2024; and sugar, confectionery and desserts at 4.8 percent annual decrease in July 2024 from a 4.4 percent annual decline in the previous month. The index of ready-made food and other food products not elsewhere classified retained its previous month’s annual increase of 7.6 percent. (Tables 7 and 11)

2.2 Main Contributors to the Food Inflation

Food inflation contributed 75.5 percent share or 4.4 percentage points to the July 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 87.6 percent share or 7.6 percentage points;
          b. Meat and other parts of slaughtered land animals with 5.9 percent share or 0.5 percentage point; and
          c. Vegetables, tubers, plantains, cooking bananas and pulses with 3.7 percent share or 0.3 percentage point.
                
 

B. National Capital Region (NCR)

Inflation for the bottom 30% income households in NCR, likewise, increased to 4.5 percent in July 2024 from 3.5 percent in June 2024. In July 2023, inflation in the area was recorded at 6.6 percent. (Tables A, 5, 6, and 13)

The uptrend of inflation in the area was mainly brought about by the annual increment in the housing, water, electricity, gas and other fuels index at 4.7 percent in July 2024 from a 1.0 percent annual decline in the previous month.

In addition, faster annual increases in the indices of the following commodity groups were observed during the month:

          a. Health, 1.3 percent from 1.2 percent;
          b. Transport, 4.0 percent from 3.6 percent;
          c. Recreation, sport and culture, 4.4 percent from 4.1 percent; and
          d. Education services, 5.9 percent from 3.5 percent. 

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

          a. Food and non-alcoholic beverages, 5.7 percent from 6.1 percent;
          b. Alcoholic beverages and tobacco, 2.8 percent from 3.0 percent;
          c. Clothing and footwear, 2.1 percent from 2.2 percent;
          d. Furnishings, household equipment and routine household maintenance, 1.9 percent from 2.1 percent; and
          e. Restaurants and accommodation services, 3.6 percent from 3.7 percent.

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 in NCR, inflation for the bottom 30% income households in AONCR accelerated to 5.9 percent in July 2024 from 5.6 percent in June 2024. In July 2023, inflation for this income group was registered at 5.1 percent. (Tables A, 5, and 14)

The acceleration of inflation in the area was mainly influenced by the higher year-on-year increment in the heavily-weighted food and non-alcoholic beverages index at 8.4 percent in July 2024 from 8.0 percent in June_2024. Also contributing to the uptrend of inflation for the bottom 30% households was the faster annual growth rate in the index of housing, water, electricity, gas and other fuels at 1.6 percent in July 2024 from 0.8 percent in the previous month.

In addition, faster annual increases were observed in the indices of transport at 3.6 percent in July 2024 from 3.0 percent in the previous month; and education services at 5.8 percent during the month from a 4.3 percent annual increase in June 2024.

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

          a. Alcoholic beverages and tobacco, 3.9 percent from 4.2 percent;
          b. Clothing and footwear, 3.0 percent from 3.2 percent;
          c. Furnishings, household equipment and routine household maintenance, 3.0 percent from 3.2 percent;
          d. Restaurants and accommodation services, 4.7 percent from 4.9_percent; and
          e. Personal care, and miscellaneous goods and services, 3.4 percent from 3.5 percent.

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

In July 2024, 13 regions outside NCR recorded higher inflation rates for the bottom 30% income households relative to their respective inflation rates in June 2024. The highest inflation rate was recorded in Region VII (Central Visayas) at 7.7 percent, while the lowest inflation rate was observed in Region I (Ilocos Region) at 4.6 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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