Ilocos Region 

1. I. Overall Inflation

The inflation rate of the Ilocos Region for the bottom 30% income household increased to 3.3 percent in December 2024 from 2.5 percent in November 2024. On the other hand, it is lower by 0.7 percentage points from the rate of 4.0 percent in December 2023. 

1.1    Main Drivers to the Upward Trend of the Overall Inflation

The upward trend of the overall inflation for the bottom 30% income households in December 2024 was primarily contributed by housing, water, electricity, gas and other fuels. The index of this commodity group increased to 2.5 percent from -0.1 percent in the previous month.

Higher indices were also observed in the following commodity groups during the month of December 2024:

a.    Food and non-alcoholic beverages, 4.5 percent from 3.9 percent; 
b.    Transport, -0.5 percent from -2.6 percent;
c.    Personal care, and miscellaneous goods and services, 5.0 percent from 4.9 percent; and
d.    Recreation, sport and culture, 5.1 percent from 4.7 percent;

On the other hand, decreased indices compared to their previous month’s rates were observed in the following commodity groups:

a.    Clothing and footwear, 4.3 percent from 4.7 percent;
b.    Furnishings, household equipment and routine household Maintenance, 3.3 percent from 4.4 percent;
c.    Alcoholic beverages and tobacco, 3.2 percent from 3.6 percent; and
d.    Restaurants and accommodation services, 0.8 percent from 0.9 percent;

The rest of the commodity groups retained their previous month’s inflation rates or had zero percent annual growths. (Table B)

1.2    Main Contributor to the 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, 67.2 percent share 
or 2.22 percentage points;
b.    Housing, water, electricity, gas and other fuels, 
12.1 percent share or 0.40 percentage point; and
c.    Personal care, and miscellaneous goods and services, 8.7 percent share or 0.29 percentage point.
 

1. II. Food Inflation

Food inflation for the bottom 30% income households at the regional level accelerated to 4.5 percent in December 2024 from 3.9 percent in November 2024. In December 2023, its annual increase was observed at 7.7 percent. 

2.1    Main Drivers to the Upward Trend of the Food Inflation

The acceleration of food inflation was mainly contributed by vegetables, tubers, plantains, cooking bananas and pulses (ND) at 22.2 percent in December 2024 from 1.8 percent in November 2024. Likewise, the following food groups contributed to the uptrend in food inflation in December 2024:

a.    Fish and other seafood (ND), 3.4 percent from 0.7 percent;
b.    Fruits and nuts (ND), 4.4 percent from -0.3 percent;
c.    Meat and other parts of slaughtered land animals (ND), 4.1 percent from 3.9 percent; and
d.    Oils and fats (ND), -1.8 percent from -2.4 percent.
 

On the other hand, lower indices were observed in the following food groups during the month December 2024:

a.    Rice, 2.4 percent from 6.6 percent;
b.    Corn, 12.7 percent from 15.7 percent;
c.    Flour, Bread and Other Bakery Products, Pasta Products, and Other Cereals, 2.6 percent from 3.4 percent;
d.    Milk, other dairy products and eggs (ND), 1.1 percent from 
3.0 percent;
e.    Sugar, confectionery and desserts (ND), -3.3 percent from 
1.6 percent; and
f.    Ready-made food and other food products n.e.c. (ND), 8.7 percent from 9.8 percent.

2.2    Main Contributors to the Food Inflation

Food inflation contributed 62.9 percent or 2.07 percentage points to the December 2024 overall inflation. The top three main contributors to the food inflation during the month were the following:

a.    Vegetables, tubers, plantains, cooking bananas and pulses (ND), 39.3 percent share or 1.77 percentage points;
b.    Cereals and cereal products (ND), 25.7 percent share or 1.16 percentage points;
c.    Meat and other parts of slaughtered land animals (ND), 
14.2 percent share or 0.64 percentage point;

Provinces

Among the provinces, Ilocos Sur posted the highest inflation rate
for the bottom 30% income households at 6.4 percent in December 2024, followed by La Union and Pangasinan, both with 2.9 percent. Meanwhile, Ilocos Norte registered a 2.5 percent annual growth.

Compared to their respective levels in December 2023, Ilocos Sur has a higher inflation rate, while La Union and Pangasinan recorded lower inflation rates. On the other hand, Ilocos Norte retained its previous year’s rate.
 

SGD. ATTY. SHEILA O. DE GUZMAN
Regional Director, RSSO 01