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 December 2024 from 2.9 percent in November 2024. In December 2023, the inflation rate was posted at 5.0 percent. (Figure 1, and Tables A, B, 5, 6, and 12)

1.1 Main Drivers to the Downward Trend of the December 2024 Overall Inflation

The downtrend in the overall inflation in December 2024 was primarily brought about by the lower year-on-year growth rate in the heavily-weighted food and non-alcoholic beverages index at 2.4 percent in December 2024 from 3.3 percent in the previous month.

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

          a. Clothing and footwear, 2.4 percent from 2.5 percent;
          b. Furnishings, household equipment and routine household maintenance, 2.4 percent from 2.6 percent; 
          c. Health, 1.8 percent from 1.9 percent; and 
          d. Personal care, and miscellaneous goods and services, 3.0 percent from 3.1 percent.

In contrast, higher annual growth rates were noted in the indices of alcoholic beverages and tobacco at 3.5 percent in December 2024 from 3.4 percent in November 2024, and housing, water, electricity, gas and other fuels at 2.8 percent during the month from 2.4 percent annual increase in November 2024.

Moreover, annual increase was observed in transport index at 1.9 percent in December 2024 from an annual decline of 0.6 percent in the previous month. 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 December 2024 Overall Inflation

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

          a. Food and non-alcoholic beverages with 51.2 percent share or 1.3 percentage points;    
          b. Housing, water, electricity, gas and other fuels with 16.9 percent share or 0.4 percentage point; and
          c. Restaurants and accommodation services with 10.5 percent share or 0.3 percentage point.   

2. Annual Average Inflation

The annual average inflation rate in 2024 for this income group was observed at 4.2 percent, lower than the 2023 annual average inflation rate of 6.7 percent. (Tables 5, 6A, and 12)

2.1 Main Drivers to the Downward Trend of the 2024 Annual Average Inflation

The downtrend in the 2024 average inflation at the national level for the bottom 30% income households was mainly brought about by the lower annual average increase in the index of food and non-alcoholic beverages at 5.6 percent in 2024 from 8.2 percent annual average inflation in 2023. Also contributed to the downtrend was the lower annual average inflation of housing, water, electricity, gas and other fuels at 0.7 percent in 2024 from 3.7 percent annual average inflation in 2023.

Except for education services, the indices of the rest of the commodity groups recorded downtrend in their annual average inflation in 2024 compared with 2023, with the financial services recording an average annual decline of 0.1 percent in 2024 from a zero percent annual average inflation in 2023. Meanwhile, higher annual average increase was observed in the index of education services at 4.6 percent in 2024 from 3.8 percent in the previous year. (Tables 5 and 6A)   

2.2 Main Contributors to the 2024 Annual Average Inflation

The top three commodity groups contributing to the 2024 annual average inflation for the bottom 30% income households were the following: 

          a. Food and non-alcoholic beverages with 74.0 percent share or 3.1 percentage points;
          b. Restaurants and accommodation services with 8.1 percent share or 0.3 percentage point; and 
          c. Personal care, and miscellaneous goods and services with 4.1 percent share or 0.2 percentage point.

3. Food Inflation

Food inflation for the bottom 30% income households at the national level moved at a slower pace of 2.4 percent in December 2024 from 3.4 percent in the previous month. In December 2023, its annual increase was observed at 7.4 percent. (Table 9)

3.1 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 the rice index at 0.7 percent during the month from  5.4 percent in November 2024.

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

          a. Corn, 2.9 percent from 6.2 percent;
          b. Flour, bread and other bakery products, pasta products, and other cereals, 2.1 percent from 2.2 percent;
          c. Milk, other dairy products and eggs, 3.3 percent from 4.0 percent; and
          d. Ready-made food and other food products not elsewhere classified, 4.5 percent from 4.9 percent.

In contrast, higher annual increases were noted in the following food groups:

          a. Meat and other parts of slaughtered land animals, 4.4 percent from 3.7 percent;
          b. Oils and fats, 2.5 percent from 1.4 percent; and
          c. Vegetables, tubers, plantains, cooking bananas and pulses, 6.9 percent from 3.7 percent.

In addition, a year-on-year increase of 0.8 percent was observed in the index of fish and other seafood in December 2024 from an annual decline of 0.2 percent in the previous month. The sugar, confectionery and desserts index recorded a slower annual decrease of 3.4 percent during the month from a 4.2 percent annual decrement in November 2024.

The fruit and nuts index retained its previous month’s annual rate. (Tables 7 and 11)

3.2 Main Contributors to the Food Inflation

Food inflation contributed 47.6 percent or 1.2 percentage points to the December 2024 overall inflation for the bottom 30% income households.

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

          a. Vegetables, tubers, plantains, cooking bananas and pulses with 23.9 percent share or 0.6 percentage point.
          b. Meat and other parts of slaughtered land animals with 23.4 percent share or 0.6 percentage point; and
          c. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 22.5 percent share or 0.5 percentage point.

3.3 Annual Average Food Inflation

In 2024, the annual average food inflation rate for the bottom 30% income households was observed at 5.9 percent, lower than the recorded annual average food inflation rate of 8.3 percent in 2023. (Table 9)


                     
 

B. National Capital Region (NCR)

Inflation rate for the bottom 30% income households in NCR increased to 3.6 percent in December 2024 from 3.0 percent in November 2024. In December 2023, inflation in the area was recorded at 4.2 percent. (Tables A, 5, 6, and 13)

The uptrend of the inflation in the area was brought about by the higher annual increment in the index of housing, water, electricity, gas and other fuels at 4.0 percent in December 2024 from 2.4 percent in the previous month. Also contributed to the uptrend of inflation in NCR was the faster annual growth rate of the food and non-alcoholic beverages index at 5.0 percent during the month from 4.2 percent in November 2024.

In addition, faster annual increases were also noted in the indices of alcoholic beverages and tobacco at 2.5 percent in December 2024 from 2.3 percent in the previous month, and personal care, and miscellaneous goods and services at 2.7 percent during the month from 2.6 percent in November 2024.

Moreover, the transport index recorded a zero percent inflation rate in December 2024 from an annual decline of 0.7 percent in the previous month.

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

          a. Clothing and footwear, 1.7 percent from 1.9 percent; 
          b. Furnishings, household equipment and routine household maintenance, 1.7 percent from 1.8 percent;
          c. Health, 1.2 percent from 1.4 percent;
          d. Recreation, sport and culture, 3.4 percent from 3.6 percent; and
          e. Restaurants and accommodation services, 2.2 percent from 2.5 percent.

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

The annual average inflation rate in NCR for 2024 was recorded at 3.5 percent, which was lower than the 7.2 percent annual average inflation rate in 2023. (Tables 5, 6A and 13)

C. Areas Outside NCR (AONCR)

Following the trend at the national level, inflation for the bottom 30% income households in AONCR decelerated to 2.5 percent in December 2024 from 2.9 percent in November 2024. In December 2023, inflation for this income group was registered at 5.0 percent. (Tables A, 5, and 14)

The deceleration of inflation in the area was mainly influenced by the lower year-on-year growth rate in the heavily-weighted food and non-alcoholic beverages index at 2.3 percent in December 2024 from 3.3 percent in November 2024.

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

          a. Clothing and footwear, 2.4 percent from 2.5 percent;
          b. Furnishings, household equipment and routine household maintenance, 2.4 percent from 2.6 percent;
          c. Health, 1.9 percent from 2.0 percent; and 
          d. Personal care, and miscellaneous goods and services, 3.0 percent from 3.1 percent.

Meanwhile, faster annual increases were observed in the indices of alcoholic beverages and tobacco at 3.6 percent in December 2024 from 3.5 percent in the previous month, and housing, water, electricity, gas and other fuels at 2.7 percent from 2.4 percent.

Moreover, the transport index recorded an annual increment of 1.9 percent during the month from a 0.6 percent year-on-year decrease in November 2024. The indices of the rest of the commodity groups retained their respective previous month’s annual rates. (Tables 5 and 6)

In December 2024, 10 regions outside NCR recorded lower inflation rates for the bottom 30% income households relative to their respective inflation rates in November 2024. The lowest inflation rate was recorded in Region XII (SOCCSKSARGEN) at 1.0 percent, while the highest inflation rate was observed in Region II (Cagayan Valley) at 4.8 percent. (Table 6)

The annual average inflation rate for 2024 in AONCR was observed at 4.2 percent, lower than the annual average inflation rate of 6.7 percent in 2023. (Tables 5, 6A and 14)

Relative to their 2023 annual average inflation rates, all regions outside NCR recorded slower inflation rates in 2024. Region I (Ilocos Region) registered the lowest annual average inflation rate of 3.3 percent in 2024. Meanwhile, the highest average inflation rate among regions outside NCR was observed in Region III (Central Luzon), MIMAROPA Region, and Region V (Bicol Region) at 4.7 percent. (Table 6A)

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.